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ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
Inventories
Raw materials and supplies, as well as <strong>good</strong>s purchased
for resale, <strong>are</strong> always measured at the lower of average
cost of acquisition including incidental acquisition
expenses or net proceeds from sale, as required by IAS 2.
In compliance with IAS 2, work in process and finished
<strong>good</strong>s/services <strong>are</strong> measured at the cost of production,
provided that this does not exceed the expected net proceeds
from sale. Production costs include all direct costs
attributable to the production process, as well as a reasonable
portion of production-related overheads.
<strong>The</strong> net revenue value is equal to the estimated proceeds
from sale that can be realized in the ordinary course of
business, minus the estimated costs up to completion and
the estimated costs required for distribution.
financial and other assets
Financial assets essentially comprise liquid assets, securities
and trade accounts receivable.
<strong>The</strong> option of classifying financial assets as financial assets
to be measured at fair value through profit or loss when
recognized for the first time is not exercised.
In compliance with IAS 39, trade accounts receivable <strong>are</strong>
classified as "loans and receivables issued by the company"
and recognized at the amortized cost of acquisition
using the effective interest rate method. Reasonable specific
valuation allowances equal to the difference between
the carrying amount of the asset and the present value of
expected future cash flows <strong>are</strong> made for doubtful accounts
receivable. <strong>The</strong> specific valuation allowances <strong>are</strong> recognized
in a value adjustment account. If the impairment
decreases in subsequent periods, the valuation allowance
is reversed, provided that the carrying amount does not
exceed the amortized cost of acquisition following reversal.
Impairment losses and their reversals <strong>are</strong> recognized as
income in the consolidated income statement. Accounts
receivable <strong>are</strong> derecognized when their irrecoverability is
established.
Securities and interests held in associated companies <strong>are</strong>
classified as "available-for-sale financial assets". After firsttime
recognition, they <strong>are</strong> always measured at fair value.
In the case of securities, this is equal to the current price.
Gains and losses from changes in fair value <strong>are</strong> recognized
outside profit or loss in equity until the financial asset is
disposed of or until an impairment loss is established. In
the event of an impairment loss, the accumulated net loss
is removed from equity and expensed.
Interests held in associated companies <strong>are</strong> measured at
acquisition cost, as there is no active market and the fair
values cannot be reliably determined due to the absence
of corporate planning. Indicated impairment losses <strong>are</strong>
recognized through profit or loss.
First-time recognition of financial assets is always posted
on the settlement date.
A financial asset is derecognized when the contractual
right to cash inflows from the asset is satisfied, expires
or all risks and rewards have essentially been transferred.
Derecognition is also posted on the settlement date.
Financial assets <strong>are</strong> also derecognized if the essential risks
and rewards associated with ownership <strong>are</strong> neither transferred
to the acquirer nor retained as a result of transferring
financial assets, and the power to dispose of the financial
assets passes to the acquirer. <strong>The</strong> rights and duties arising
or remaining after such transfer <strong>are</strong> recognized separately
as an asset or liability. However, if the power to dispose
of the transferred financial assets remains with the ALNO
Group, the sold assets <strong>are</strong> still recognized in the amount
of the continuing commitment. An associated liability is
simultaneously posted under other liabilities. Differences
between the assets and liabilities posted <strong>are</strong> recognized
in the financial result.
Other assets <strong>are</strong> recognized at acquisition cost, liquid
assets at their nominal value.