ANNUAL REPORT 2008 | 2009 - SinnerSchrader AG

56NotesConsolidated Financial Statements of SinnerSchrader AG2.9 Accounts Receivable and Unbilled ServicesAccounts receivable are posted at their nominal value minus appropriate value corrections. The value of theclaims is regularly checked on an individual basis. Value corrections are formed in the case of identifiableindividual risks.Services provided for fixed-price projects which were realised according to the cost-to-cost method in accordancewith their degree of completion but had not yet been billed are posted with a proportion of the total paymentagreed for the fixed-price project, i.e. including the profit margin, as unbilled services, with any deposits thatmay have been made for the project being offset as receivables from POC.2.10 Other AssetsThe other assets are entered on the balance sheet at the nominal value or the achievable amount, whichever islower.2.11 Cash and Cash EquivalentsCash comprises cash flows, bank credits available on a daily basis, and fixed deposits with a remaining periodof less than three months. They are posted at their nominal value.Securities with a fixed period of less than three months and with a low risk qualify as cash equivalents. Sinner-Schrader held no securities which qualified as cash equivalents as of either 31 August 2009 or 31 August 2008.2.12 Statements of Cash FlowsThe Statements of Cash Flows are prepared using the indirect method according to IAS 7. The liquidity fundswhose change is formed in the Statements of Cash Flows comprise the liquid funds and the cash equivalents.Value adjustments of the securities in the liquidity funds with a neutral effect on profits are posted in the Statementsof Cash Flows together with the exchange-rate-related change in the liquid funds under “Net effect ofrate changes on cash and cash equivalents”.2.13 Trade Accounts Payable and Other LiabilitiesTrade accounts payable and other liabilities are posted at the nominal value.2.14 Other Accrued ExpensesAccording to IAS 37, other accrued expenses are formed for legal and actual obligations that were incurredeconomically by the reporting date if it is probable that fulfilment of the obligation will lead to the Group fundsbeing depleted and a reliable estimate of the level of the obligation can be made. Reserves are reviewed onevery balance sheet date and adjusted to the best estimate in each case. The amount of reserves correspondsto the value of the expenses probably needed to fulfil the obligation. The other accrued expenses take accountof all recognisable obligations vis-à-vis third parties according to IAS 37.