Annual Report

HUBER+SUHNER Annual Report 2010 · Part 2
Notes to Financial Statements
1 Summary of significant accounting policies
1.1 General
The financial statements of HUBER+SUHNER AG are
prepared in accordance with Swiss corporation law.
1.2 Foreign currency translation
Balance sheet items denominated in foreign currencies are
converted into Swiss francs at the year-end exchange rates
(see supplement to Group Financial Statements).
1.3 Cash and cash equivalents
Cash and cash equivalents consist primarily of term deposits,
cash, bank and postal checking accounts, bills of
exchange and checks.
1.4 Marketable securities
The securities portfolio includes bonds, equity instruments,
mutual fund shares and fixed-term deposits. Securities
are valued at the lower of cost or market value. A provision
is made where necessary for any impairment in value.
Revenue from securities is included in financial revenue
and expenses are included in financial expense.
1.5 Investments in subsidiaries
Investments in subsidiaries are valued at acquisition cost
less any reserve for an impairment in value.
1.6 Intercompany receivables
Short-term intercompany receivables are for sale of goods,
short-term loans and interest. Long-term receivables are
for loans to subsidiary companies.
1.7 Provisions
Provisions are established mainly for warranties and for
miscellaneous commercial risks.
1.8 Share capital
See note 37 of the Financial Report for the composition
of capital stock.
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1.9 Reserve for treasury shares
This reserve was made in accordance with the Swiss
Code of Obligations for shares of HUBER+SUHNER
AG held by the Company (see note 7 in the notes of
HUBER+SUHNER AG).
1.10 Sales
Sales of the Parent Company are shown as a gross amount.
They represent the total value of invoices reduced by sales
taxes and credits for returns, but before reductions of revenue
such as rebates and cash discounts.
1.11 Other operating revenue
This includes revenue from other activities such as the
sale of scrap, miscellaneous services, the capitalisation of
internally produced capital goods, the release of provisions
and miscellaneous, not periodical, operating revenue from
third parties.
1.12 Financial revenue
Financial revenue comes primarily from cash investments
and securities, dividends from subsidiary companies, intercompany
interest, gains on foreign currency exchange and
securities.
1.13 Non-operating revenue and expenses
This is mainly revenue and expenses from real estate not
directly related to the business and from fuel sales to
employees.
1.14 Other operating expenses
This is composed of plant, selling, administration and tax
expenses as well as provision expenses.
1.15 Financial expense
Financial expense represents primarily interest expense,
bank fees, losses on securities and foreign exchange
losses.
Financial Statements HUBER+SUHNER AG