The good prospects are based on the all-embracing ... - ALNO AG

76
ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
risk-free base rate, premium for market risks (multiplied by
the beta-factor), growth discount in the perpetual annu-
ity, cost of borrowing and capital structure. Forecasting
of the cash flows is <strong>based</strong> on the results calculated for
the individual Group companies within the context of a
detailed planning process using internal empirical values
and external economic figures.
<strong>The</strong> fair values after deduction of the costs to sell <strong>are</strong> cal-
culated on the basis of expert appraisals or on the basis
of best-possible internal estimates of the selling price that
can realistically be expected.
An impairment is recognized when the recoverable amount
is lower than the carrying amount of the cash generating
unit. A reversal of <strong>good</strong>will impairment is not undertaken,
in compliance with IAS 36.
Corporate planning is essentially <strong>based</strong> on the following
assumptions:
A change in sales from 9.4% to 22.7% was assumed for
ALNO AG (including special purpose leasing companies).
This assumption is <strong>based</strong> on a change in the volume of
sales of between 3.3% and 4.7% p.a. in Germany and
between 11.8% and 13.7% p.a. abroad, as well as on
adjustments in prices between 3.9% and 7.1% p.a. in
Germany and between 1.9% and 6.6% p.a. abroad. In
the case of purchasing prices, material costs <strong>are</strong> expected
to rise by 11.3% per unit in 2012 and by between 0.1%
and 1.8% p.a. per unit from 2013 onwards. An annual
increase of between 0.4% p.a. and 8.2% p.a. with a growing
number of employees was assumed when planning
personnel costs.
A change in sales from -0.9 % to 8.8 % was assumed
for the CASAWELL Group. This assumption is <strong>based</strong> on
a change in the volume of sales of between -8.1 % and
5.3 % p.a. in Germany and between 4.2 % and 13.5 %
p.a. abroad, as well as on adjustments in prices between
3.4 % and 5.3 % p.a. in Germany and between 1.9% and
4.2 % p.a. abroad. In the case of purchasing prices, material
costs <strong>are</strong> expected to decline by 4.6 % per unit in
2012 and to increase by between 1.2 % and 1.6 % p.a.
per unit from 2013 onwards. An annual change of between
-1.9 % p.a. and 2.6 % p.a. with a slightly lower number of
employees was assumed when planning personnel costs.
Safety margins in the amount of 10% to 20% were
deducted from the free cash flows calculated during the
planning process.
On the basis of these cash flow forecasts, the value in
use was determined for the cash generating units, applying
a capital cost factor of 10.02% (previous year: 7.83%)
before income tax for ALNO AG and 10.55% (previous year:
10.66%) for the CASAWELL Group. A risk-free interest rate
of 2.75% (previous year: 3.25%), a premium of 5.5% (previous
year: 5.0%) on market risks and a beta-factor <strong>based</strong>
on the average for comparable companies equal to 1.42
(previous year: 1.10) were assumed for the financial year
2011. <strong>The</strong> cost of borrowed capital before taxes on income
equalled 4.01% (previous year: 5.67%) <strong>based</strong> on the average
for comparable companies. An effective tax rate of
28.0% (previous year: 28.0%) was assumed in the applied
consideration of input tax. At 77% to 23% (previous year:
83% to 17%), the ratio of equity to borrowed capital is in
keeping with the average capital structure of comparable
companies.
A growth rate of 1% is assumed for the following cash
flows after the end of the four or five-year planning horizon.
This growth rate matches the long-term average growth
rate in the kitchen furniture industry.
Summary of cash generating units:
in '000 EUR ALNO CASAWELL
Carrying amount 17,658 21,291
Value in use – 15,450 74,858
<strong>The</strong> recoverable amount for the CASAWELL Group was
calculated on the basis of the value in use. Due to the
negative value in use, the fair value minus costs to sell
was applied to determine the financial position of ALNO
AG. On this basis, impairment losses were recognized
on additions during the year in the amount of EUR 3,399
thousand in the financial year 2011, as the new targets for
the impairment test were not available until spring 2012
and the negative value in use as per 31 December 2010
therefore remained valid. Based on the impairment test
performed when preparing the annual financial statements
as at 31 December 2011, further impairment losses in the
total amount of EUR 896 thousand (previous year: