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

Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial Statements 147Unrealised profits from transactions between group companies and associates areeliminated to the extent of the group’s interest in the associate. Unrealised losses arelikewise eliminated, unless the transaction provides evidence of an impairment of theasset transferred. The accounting and measurement methods of associates were – insofaras necessary – changed in order to ensure uniform accounting throughout the group.Jointly-controlled entities (joint ventures) are likewise accounted for at equitypursuant to ias 31.38. Unrealised gains or losses from transactions with joint ventures areeliminated proportionately within the scope of consolidation insofar as the underlyingassets are significant.Share holdingsThe financial assets show investments in enterprises, over which gildemeister does notexercise any significant influence.Share holdings for which a quoted price is available are classified as “available forsale” and are measured at this value. Share holdings for which there is no active marketare classified as “available for sale” and recognised at amortised cost (see page 151“Financial instruments”). There is no active market for these enterprises; therefore it isassumed that the carrying amount corresponds to the fair value. A reliable evaluation ofthe fair value would only be possible within the scope of specific purchase negotiations.At the present time there are no prospects of disposal.InventoriesValuation of inventories was carried out at the acquisition or production costs or thelower net selling price. Pursuant to ias 2 “Inventories” elements of the production costsinclude, along with production material and manufacturing labour, prorated materials andproduction overheads. Expenses for administration and expenses arising in the socialcontribution area are included insofar as these are allocated to production. The proportionof overheads is evaluated on the basis of ordinary employment. Borrowing costs are notrecognised as part of the cost of the asset as the pre-conditions of ias 23 are not met (seepage 154 “Borrowing costs”). When determining the net realisable value, inventory risksarising from the period of storage and reduced usability were recognised through appropriatereductions in values. If the causes that led to a reduction in value no longer exist,the original value will be reinstated.Lower values at the end of the reporting period, arising from a reduction in salesrevenues, were recognised. Raw materials and consumables as well as merchandise wereprimarily assessed by the average cost method.There were no orders at the end of the reporting period that would have requiredaccounting in accordance with ias 11 (Construction Contracts).consolidated financialstatements