ANNUAL REPORT 2008 | 2009 - SinnerSchrader AG

54NotesConsolidated Financial Statements of SinnerSchrader AGThe procurement and manufacturing costs of the tangible assets contain the purchase price, import duties,and other non-reimbursable taxes as well as all directly assignable costs that are incurred to put the assetin a condition fit for use. Reductions in the purchase price, such as discounts, bonuses, and deductions aresubtracted from the purchase price. Subsequently incurred costs, such as maintenance and repair costs, arerecorded with an effect on expenses in the year in which they are incurred. If such costs demonstrably lead toan increase in the future economic benefit resulting from the use of the asset and above the original volume ofperformance, the costs shall be posted as subsequent procurement and manufacturing costs.The property and equipment of SinnerSchrader comprises objects of company and business equipment,computer hardware, and leasehold improvements.Depreciation is linear. A usage period of three years is usually assumed for computer hardware; four to eightyears for other electronic and electrical devices and equipment, and eight to thirteen years for office furniture.Improvements to rented premises are depreciated over the estimated usage period of the improvements or theresidual term to the end of the tenancy, if this is shorter.The cost of depreciation is included in the costs of sales revenues and operating expenses. The costs of repairand maintenance work are recorded with an effect on expenses.In the event of the sale or decommissioning of tangible asset items, the relevant procurement or manufacturingcosts and the accumulated depreciation are debited and any profit or loss posted in the Statements ofOperations as other revenues or other expenses.2.7.3 Reductions in Value of Non-current AssetsThe posted value of asset items is reviewed if there are signs of non-scheduled reduction of value. If the postedvalue of an asset exceeds its achievable amount, a non-scheduled depreciation is made according to IAS 36.The achievable amount is the net sale price or commercial value, whichever is higher. The net sale price is theamount that can be achieved from a sale under standard market conditions minus the sales costs; commercialvalue is the cash value of the expected income from further use of the asset and the sale value at the end of theusage period. The commercial value is determined individually for every asset or for the correspondingcash-generating unit.If the reasons for the non-scheduled depreciation are no longer in place, the original value will be reinstated,except in the case of goodwill.In the 2008/2009 and 2007/2008 financial years, there were no signs of a reduction in value of the otherintangible or tangible assets.