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

146Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial StatementsIn the gildemeister group the recoverable amount equals the value in use and wasdetermined as the present value of future cash flows according to the discounted cashflow method. The future cash flows were derived from the planning of the gildemeistergroup. The calculation of cash values for estimated future cash flow is based primarilyon assumptions as to future sales prices or volume and costs. Planning is based on adetailed planning period extending up to the financial year 2013. A growth rate of 1%was assumed for the period following the detailed planning period, which is in line withgeneral expectations of future business development.For purposes of impairment testing, the cash-generating unit, “Machine Tools”was allocated goodwill in an amount of € 39,072 k (previous year: € 39,072 k), the cashgeneratingunit “Services” was allocated goodwill in an amount of € 32,855 k (previousyear: € 32,411 k) and the cash-generating unit “Energy Solutions” was allocatedgoodwill in an amount of € 9,852 k (previous year: € 4,240 k).The cash flows determined were discounted at a pre-tax weighted average cost ofcapital rate (wacc) of 11.9% (previous year: 11.1%) for the cash-generating units“Machines Tools” and “Services” as well as 12.1% (previous year: 14.1%) for the cashgeneratingunit “Energy Solutions”. If the recoverable amount of a cash-generating unitis lower than its book value, the value of goodwill allocated to the cash-generating unitwill, initially, be reduced at an amount equal to the remaining balance. In financial year2010 there was no need for impairment.In the cash-generating units “Machine Tools”, “Services” and “Energy Solutions”,a long-term reduction in the ebit margin of 1%, a reduction in the long-term growth rateof 1% or a rise in the weighted average cost of capital (wacc) before tax of 1% would notlead to a need for impairment on the goodwill allocated to the cash-generating units.consolidated financialstatementsAssociatesAssociates are entities over which the group can exercise significant influence but cannotexercise any control. Significant influence is basically assumed to be if gildemeisterhas a share of at least 20% to 50% of the voting rights either directly or indirectly.Interests in associates are accounted for at the equity method of accounting and at costupon acquisition. The group's interest in associates includes goodwill arising out ofthe acquisition (after taking accumulated impairment into account).The interest of the group in the profit and loss of associates is recognised from theacquisition date in the income statement, the interest in changes in provisions in groupprovisions. Accumulated changes after acquisition are offset against the carrying amount.If the share in losses of the group in an associate corresponds to the group's interest inthe associate, including other unsecured receivables, or exceeds the interest, the groupdoes not recognise any other losses unless it has entered into obligations on behalf of theassociate or has made payments on behalf of the associate.