Annual Report 2005

52
Notes relating to the consolidated accounts
Reconciliation of the profit and loss account for the 2004 financial year
German Commercial Code Reconciliation IFRS
01.01.2004 01.01.2004 01.01.2004
ASSETS in €k in €k in €k
Sales 140,308 0 140,308
Increase in stocks of finished and semi-finished goods 44 11 55
Other operating income 1,983 40 2,023
Cost of materials - 78,262 - 1,400 - 79,662
Personnel expenses - 29,421 - 10 - 29,431
Depreciation - 6,445 - 757 - 7,202
Other operating expenses - 33,609 - 855 - 34,464
Income from investments - 577 - 1 - 578
Financial result - 4,585 0 - 4,585
Extraordinary profit/loss - 3,553 3,553 0
Taxes on income and earnings - 929 - 315 - 1,244
Other taxes - 354 8 - 346
Annual deficit before minority interests - 15,400 274 - 15,126
III. Accounting and valuation rules which deviate significantly in respect of German commercial law
Start-up and business expansion expenses are not shown as assets.
Goodwill or company values as well as other intangible fixed assets with an indefinite useful life will be checked at least once a year to substantiate their value
(impairment-only approach). There will be no scheduled depreciation.
The straight-line method of depreciation will be used for tangible assets in accordance with estimated useful life and not in accordance with progressive rates
under tax law. Current values above the continued acquisition costs have been used for certain machines.
Leasing contracts which meet the restrictive prerequisites for financial leasing in accordance with IFRS will be entered in the balance sheet as an asset value and
leasing obligation.
Derivatives will be valued at market value even if this is higher than the acquisition costs. The negative market development in respect of interest rate swaps will
be shown as a liability at fair value. Market changes affecting derivatives and their effect on the result will be shown in the profit and loss account.
Only the production-related overheads in respect of normal utilisation capacity will be shown for finished and semi-finished products. Reductions in value as a
result of changes to range and marketability will be carried out in accordance with the Group’s standardised devaluation criteria (IFRS consolidated accounting
guidelines).
Individual and global value adjustments to claims will be made in accordance with the standards specified in the IFRS consolidated accounting guidelines.
Provisions will only be created if there are existing obligations in respect of third parties and if there is at least a 50% likelihood that the obligation will have to
be settled.
Provisions will not be created for failure to carry out maintenance or other expenses.
Pension provisions have been calculated in accordance with the present value of entitlement procedure.
Monetary items in foreign currency are valued at the rate prevailing on the closing date and the resulting exchange rate differences are taken into account in the
result for the period. By way of exception, exchange rate differences from long-term monetary items within the Group are entered under shareholders’ equity capital
without affecting the result.
If conditions were met (different valuation methods in the operating and tax statements, expected future adjustment of tax loss carry-forwards, consolidation
methods at Group level), differences have been shown with deferred taxes. Deferred taxes on loss carry-forwards have only been created at the rate of existing
deferred tax liabilities.