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

154Consolidated Financial Statements of gildemeister Aktiengesellschaft: Notes to the Consolidated Financial StatementsGovernment grantsGovernment grants are recognised at fair value if it can be assumed with reasonablecertainty that the grant will be made and the group fulfils the necessary conditions toreceive the grant. Government grants for costs are recognised in the period in which therelated costs, which the grants are intended to compensate, were incurred. Governmentgrants for investments are recognised as deferred income within other liabilities. Theyare amortised on a straight line basis over the expected useful life of the related asset inthe income statement under other operating income.Borrowing costsAccording to ias 23.5, borrowing costs are capitalised if a so-called qualifying assetexists, that is, an asset takes a substantial period of time to get ready for its intended useor sale. At gildemeister a period of more than 12 months is considered a substantialperiod of time. Borrowing costs that can be directly attributed to the acquisition, constructionor production of a qualifying asset did not arise in financial year 2010. Borrowingcosts were therefore directly recognised as expense in the period.Sales revenuesPursuant to the criteria laid down in ias 18 “Revenues”, sales revenues arising from thesale of goods are recognised at the time of transfer of the relevant risks and rewards if aprice has been agreed or can be determined and it can be assumed that such price will bepaid. In the sale of goods this is regularly the time when the delivery takes place and therisk has been transferred to the customer. Moreover, gildemeister must reliably determinethe amount of the sales revenues and be able to assume the collectability of thereceivable. Sales revenues from services are recognised when the services are rendered.Recognition in accordance with the percentage of completion method is not carried outas the requirements of ias 11 are not met. Interest income is recognised on a specificperiod of time basis taking into account the effective interest rate. Dividend income isrecognised at the time the right to receipt of dividend payment arises.Consideration receivable for deliveries and services charged to the customer andreduced by any sales deductions, contract penalties and cash discounts are shown in thesales revenues.consolidated financialstatements