PDF (7.3 MB) - GILDEMEISTER Interim Report 3rd Quarter 2012

Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial Statements 143Impairment of goodwillThe group reviews goodwill at least once a year for impairment and whenever there is anindication to do so. This requires an allocation of goodwill to the cash-generating unitsas well as the higher of the two values of fair value less purchase costs and the value inuse of the cash-generating units, to which the goodwill is allocated. To assess the value inuse, the company management must assess the foreseeable future cash flow of the cashgenerating unit and, moreover, select an appropriate discount rate in order to determinethe cash value of this cash flow. As at 31 December 2010, the carrying amount of goodwillamounted to € 81,451 k (previous year: € 75,740 k). Further information is given onpage 162 et seq.Pension provisionsExpenses from benefit-oriented pension plans are determined on the basis of actuarialcalculations. The actuarial calculations take place on the basis of assumptions withrespect to discount rates, expected returns on plan assets, future wage and salaryincreases, the mortality rate and future pension increases. Corresponding to the longtermfocus of these plans, such assessments are subject to significant uncertainties.On 31 December 2010 provisions for pension obligations amounted to € 26,316 k(previous year: € 26,331 k). Further information is given on page 175 et seq.Intangible assets arising from developmentIntangible assets arising from development are capitalised according to the accountingand valuation method presented on page 144 et seq. To determine the amounts to becapitalised, the company management must make assumptions as to the amount ofexpected future cash flow from intangible assets, the interest rates to be applied and theperiod of accrual of expected future cash flow that the intangible assets generate. On31 December 2010, intangible assets arising from development had a carrying amountaccording to the best possible assessment of € 26,438 k (previous year: € 21,476 k).Assumptions and estimates are additionally required for value adjustments fordoubtful debts as well as for contingent liabilities and other provisions; moreover, theyare required for determining the fair value of long-lasting fixed assets and intangibleassets, determining the net disposal value of inventories, as well as for the assessment ofdeferred taxes on tax losses carried forward (see page 160 et seq.).The main assumptions on which the respective estimates are based are commentedupon for the individual items in the income statement and balance sheet.In individual cases the actual values may differ from the assumptions and estimatesmade, requiring a significant adjustment in the carrying amount of the assets or liabilitiesconcerned. Pursuant to ias 8 “Accounting Policies, Changes in Accounting Estimatesand Errors”, changes will be taken into account at the time of their discovery and recognisedin the income statement. The previous year’s amounts need not be adjusted andcan be compared.consolidated financialstatements