SEAT Annual Report 2011 - Volkswagen AG

j) Income and expensesIncome and expenses are posted when realized or incurred, for the reasonable value of the considerationreceived, and represent the amounts receivable or payable for goods delivered and services rendered, lessreturns, reductions, discounts and value added tax.k) Compensation for termination of contractCompensation for termination of contract is paid to employees as a result of the decision to terminate their labourcontract prior to the normal retirement age or when the employee voluntarily terminates their contract in exchangefor said compensation. The company recognises this compensation when it has committed itself demonstrably toterminating the contracts of employees in accordance with a formal detailed plan.l) Environmental expensesExpenses deriving from business activities aimed at protecting and improving the environment are posted asexpenses in the financial year in which they are incurred. Said expenses are posted at greater value of fixed assetswhen involving additions to tangible assets whose objective is minimizing environmental impact and protectingthe environment.m) Transactions with Group companiesAs a general rule, operations between Group companies are accounted for at the initial moment for their fair value.In the event that the agreed price is different from the fair value, the difference is recorded with consideration forthe economic reality of the operation. Later valuation is carried out in accordance with provisions in the applicablestandards.n) Non-current assets available for saleNon-current assets available for sale are valued at the moment of clasification at either book or reasonable value,whichever is the lower, after deduction of estimated sales costs.Included under this section is the wholly-owned subsidiary company SEAT Motor España, S.A. The Board ofDirectors of SEAT, S.A., at a meeting held on 11.11.11, decided to proceed to its sale to the Group companyVolkswagen-Audi Retail Spain, S.L. with effect from January 1, 2012 (see Appendix 2).6. NON-CURRENT ASSETSa) Evolution of non-current assetsMovements of the items included in non-current assets are detailed in Appendix 1 of these Notes.b) Intangible assetsCorrection due to impairment amounts to 45.1 million euros (39.1 in 2010). Said corrections are linked to theestimate of future sales volumes of the vehicles comprising the model range. The current value of the margin ofcontribution to sales during the life cycle of the models has been calculated on the basis of an annual discountrate of 6.8% (9.1% in 2010). The sum total of investments activated under R&D is acquired from Group companies.On November 2, 2007 the Spanish Cabinet approved the definitive individual assignment of emission rights forgreenhouse gases for 2008-2012. SEAT, S.A. was assigned 106,538 tonnes of CO 2for each year of the nationalplan.NOTES | ANNUAL REPORT 2011 | 101