ANNUAL REPORT 2008 | 2009 - SinnerSchrader AG

Consolidated Financial Statements of SinnerSchrader AGNotes572.15 Treasury StockUnder IAS 32, treasury stock is posted at its procurement costs as a deducted item within the shareholders’equity.2.16 Deferred TaxesUnder IAS 12, deferred tax claims or liabilities under IFRS are to be posted in the balance sheet if there aredifferences between the posted values of assets and liabilities in the balance sheet under IFRS and those inthe tax balance sheet that reverse in future years (“temporary differences”). Furthermore, deferred tax claimsmust also be formed for the future use of tax loss carry-forwards. Deferred tax claims and liabilities are to bedetermined on the basis of the liability method.The deferred tax claims and liabilities from temporary differences must be determined separately for every taxsubject. Tax claims should be posted only if or to the extent to which they are countered by tax liabilities or towhich their realisation can be classified as probable through future taxable profits. Tax claims and liabilities areposted in balanced form for a tax subject. Balancing between different tax subjects is not permitted.For the evaluation of the temporary differences or loss carry-forwards, the tax rates valid on the balance sheetdate or, for a future reversal of temporary differences, the tax rates legally entered into force on the balancesheet date shall be used.Deferred tax expenditures or revenues shall be directly offset in the shareholders’ equity if they refer to differencesthat do not have an impact on the Statements of Operations, such as evaluation changes to financialassets available for sale.2.17 Revenue RealisationSinnerSchrader provides services of various kinds that are treated differently with respect to revenue realisation.In principle, SinnerSchrader only realises revenues, once the service has been performed according to theunderlying contractual agreements and the risk has been transferred to the recipient of the service or thepurchaser, if it is probable that the economic benefit from the business will flow into the company and the levelof sales revenues can be reliably determined. The revenues are posted net, without turnover tax, discounts,customer bonuses or deductions. They contain reimbursable expenses, such as travel expenses, if the customerhas been invoiced for them and has paid them.• Project and Consultancy ServicesProject and consultancy services are billed either according to actual expenditure or on the basis of a fixedprice. The revenues from projects on a fixed-price basis are entered on the balance sheet according to theprogress achieved using the POC method according to IAS 11.22 ff. In this connection, progress is determinedas a proportion of the project costs already incurred in relation to the expected total costs for the project as awhole. To cover imminent losses from not-yet-completed projects, accrued expenses are formed on the basisof an individual evaluation of the project at the expense of the period in which such a loss is probable. Revenueswithin the scope of contracts based on actual expense are generally posted monthly according to the expenditureincurred to provide the service.