Annual report - Viscofan

VISCOFAN 2006 ANNUAL REPORTConsolidated Annual Accounts4.21. Segment ReportingA business segment is a distinguishable component of the Group that is engaged either in providing products or services whichis subject to risks and rewards that are different from those of other segments.A geographical segment is a distinguishable component of the Group that is engaged in providing products or services withina particular economic environment and that is subject to risks and returns that are different from those of componentsoperating in other economic environments.4.22. Classification of assets and liabilities as current and non-currentThe Group classifies assets and liabilities in the consolidated balance sheet as current or non-current based on the followingcriteria:• Assets are classified as current when they are expected to be realised, sold or traded in the Group’s ordinary courseof business within 12 months of the balance sheet date and when held essentially for trading. Cash and cashequivalents are also classified as current, except where they may not be exchanged or used to settle a liability, atleast within the 12 months following the balance sheet date and before the consolidated annual accounts areprepared.• Liabilities are classified as current when expected to be settled in the Group’s ordinary course of business within 12months of the balance sheet date and when essentially held for trading, or where the Group does not have anunconditional right to defer settlement of the liability for at least 12 months from the balance sheet date and beforethe consolidated annual accounts are prepared.• Current liabilities such as trade creditors, personnel expenses and other operating costs are classified as current,even if maturing more than 12 months from the balance sheet date.• Financial liabilities which must be settled within the 12 months following the balance sheet date are classified ascurrent, even if the original maturity exceeded 12 months and a refinancing or restructuring agreement for longtermpayments exists which has been finalised subsequent to the close and before the consolidated annualaccounts have been prepared.4.23. EnvironmentThe Group takes measures to prevent, reduce or repair the damage caused to the environment by its activities.Costs incurred from these activities are recognised under other operating costs in the year in which they are incurred.Assets used by the Group to minimise the environmental impact of its activity and protect and improve the environment,including the reduction or elimination of future pollution caused by the Group’s operations, are recognised in the consolidatedbalance sheet based on the criteria for recognition, measurement and disclosure detailed in note 4.4.5. Segment ReportingSegment information is presented in respect of the Group’s business and geographical segments. The primary format, businesssegments is based on the Group’s management and internal reporting structure, while geographical segments are considered tobe secondary.94