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

144Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial StatementsThe application of specific ifrs is included in the explanatory notes on individual statementof financial position items. In principle the following accounting and valuationmethods have been applied:Intangible and tangible assetsuseful economic life of assetsSoftware and other intangible assetsIntangible assets arising from developmentOffice and factory buildingsTechnical equipment and machinesFactory and office equipment1 to 5 years3 to 10 years10 to 50 years2 to 30 years1 to 23 yearsconsolidated financialstatementsDevelopment costs that are directly attributable to the development of identifiableindividual machine tools, services or software solutions, which lie within the group’spower of disposition, were recognised pursuant to ias 38 “Intangible Assets” if it isprobable that the use of the asset is associated with a future economic benefit and thecost of the asset can be reliably measured. They were accounted for at cost and amortisedon a straight-line basis corresponding to their useful life. Production costs include allcosts that can be directly and indirectly attributed to the development process and necessaryportions of development-related overheads. Capitalised development costs aredepreciated on a straight-line basis from the start of production over the expected productlife cycle. Research costs are recognised as expense in the period in which they accrue.Pursuant to ifrs 3 “Business Combinations”, scheduled depreciation is not appliedto goodwill with an indefinite useful economic life, rather it is tested for impairmentannually and if ever there is any criterion to test for impairment. If a value adjustmentrequirement is determined, goodwill is amortised.Tangible assets were measured at cost, reduced by regular depreciation over theuseful life of the asset. Borrowing costs are not recognised as part of the cost of the asset asthe pre-conditions of ias 23 are not met (see page 154 “Borrowing costs”). Depreciationwas normally carried out by the straight-line method in accordance with the useful life.A re-measurement of tangible assets pursuant to ias 16 “Property, Plant and Equipment”was not carried out. There was no property held as financial investment pursuant toias 40 “Investment Property”.