ANNUAL REPORT 2008 | 2009 - SinnerSchrader AG

Consolidated Financial Statements of SinnerSchrader AGNotes532.7 Non-current Assets2.7.1 Intangible AssetsIntangible assets comprise software, customer relationships, and goodwill and are subject to the balancingregulations of IAS 38.Intangible assets are evaluated on receipt at their procurement or manufacturing cost. They are identified if itis probable that the future economic benefit to be assigned to the assets will come to the company and if theprocurement or manufacturing costs of the assets can be reliably assessed. Costs for the procurement ofsoftware should be activated under intangible assets if they are not to be considered a component of theassociated hardware.After initial reporting, intangible assets are evaluated at their procurement or manufacturing costs minus theaccumulated regular depreciation and the accumulated costs for impairment of value. The planned depreciationis linear over estimated usage periods. The depreciation period and method are reviewed annually at the end ofeach financial year.• SoftwareDepreciation for purchased software is linear over an estimated usage period of three years. The costs that areincurred to reinstate or maintain the future economic benefit that a company can expect from the originallyassessed performance of existing software should be recorded as an expense.• Intangible assets acquired in the course of a company mergerOther intangible assets which are acquired in the course of a company merger are identified and reportedseparately from goodwill in accordance with IFRS 3 as long as they meet the definition of intangible assets andthe current value to be ascribed to them can be determined reliably. The procurements costs correspond to thecurrent value to be ascribed to them at the time of acquisition.The active difference between the procurement costs and the identifiable assets and liabilities valued at thecurrent values and acquired proportionately should be assumed as the goodwill from a company purchase.After being reported for the first time, other intangible assets which were acquired in the context of a companymerger are evaluated like directly acquired intangible assets with their procurement costs minus accumulatedplanned depreciation over the estimated usage period and accumulated unscheduled reductions in value if theestimated usage period is determined to be limited.Goodwill has an unlimited usage period. It is therefore not depreciated according to schedule, but subjected toan annual impairment test in accordance with IAS 36.2.7.2 Tangible AssetsIn accordance with IAS 16, tangible assets are posted as assets if it is probable that the future economic benefitassociated with them will come to the company and if the procurement or manufacturing costs of the assetscan be reliably assessed. The tangible assets shall be evaluated at the procurement and manufacturing costsminus accumulated regular and non-scheduled depreciation.