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

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ConsoLidatEd FinanCiaL statEmEnts | aCCountinG poLiCiEs
Lease payments under operating leases <strong>are</strong> recognized in
the consolidated income statement as an expense by the
straight-line method over the term of the lease.
<strong>The</strong> other liabilities <strong>are</strong> shown at their repayment amounts.
A trade account payable or other liability is derecognized
when the obligation underlying the liability is discharged,
terminated or extinguished. <strong>The</strong> trade accounts payable
which were derecognized in 2011 following a waiver of
repayment <strong>are</strong> derecognized through profit or loss in the
result from reorganization.
5. MaJor dIsCreTIoNarY deCIsIoNs,
assuMPTIoNs aNd esTIMaTes
discretionary decisions
<strong>The</strong> following discretionary decisions have been made by
the company's management in conjunction with the application
of recognition and measurement policies:
Two leasing companies <strong>are</strong> consolidated as special purpose
entities, as the companies <strong>are</strong> economically controlled
by ALNO AG. <strong>The</strong> leasing companies concerned have for
many years leased buildings required for operations and
an associated property on the company site exclusively to
ALNO AG. Contracts concluded by the lessor in conjunction
with the leased asset must be approved by ALNO
AG. Any resultant payment obligations <strong>are</strong> charged out to
ALNO AG in the full amount. ALNO AG will be granted the
right to purchase the leased assets on expiry of the lease.
assumptions and estimates
When preparing the consolidated financial statements,
assumptions and estimates have been made with impact
on recognition and the amount of the assets, liabilities,
income, expenses and contingent liabilities reported.
When assuming a going concern, the assumptions and
estimates essentially concern the corporate planning,
as well as the occurrence and implementation of various
conditions (see B.1. "Basis for preparation of the financial
statements").
<strong>The</strong> assumptions and estimates made in conjunction
with impairment testing of the <strong>good</strong>will and fixed assets
essentially concern the forecast cash flows and discounting
factors (see B.4. "Impairment test for <strong>good</strong>will" and
C.8. "Write-downs on intangible assets, property, plant and
equipment").
Further uncertainties exist in conjunction with the capitalization
of future tax reliefs, due to the assumptions made
with regard to the expected date of occurrence and amount
of future taxable income in the next four years. Future tax
reliefs have also been calculated on the assumption that
there will be no harmful change of ownership in the future
eliminating the tax loss carryforwards in accordance with
Sections 8 (4) and 8c of the Corporation Tax Act (KStG)
(see C.10. "Income taxes").
Assumptions and estimates <strong>are</strong> also made when determining
the economic useful life of the fixed assets (see B.4.
"Intangible assets" and "Property, plant and equipment"),
as well as when determining the parameters for calculating
the provisions for pensions (see D.11. "Provisions for pensions")
and pre-retirement part-time working arrangements
(see D.12. "Other provisions"). <strong>The</strong> provision for warranty
claims has been calculated on the basis of assumptions
and estimates concerning the period of time between
delivery date and warranty period, as well as on the future
warranty encumbrances (see D.12. "Other provisions").
Valuation allowances on trade accounts receivable <strong>are</strong>
likewise <strong>based</strong> on estimates concerning, in particular,
the cash inflow expected in the future (see D.6. "Trade
accounts receivable").
All these assumptions and estimates <strong>are</strong> <strong>based</strong> on the
knowledge currently available at the time of preparing the
consolidated financial statements. Although these assumptions
and estimates <strong>are</strong> to the best of the management's
knowledge, the actual results may deviate from these.