Corporate Magazine 2012 - Boehringer Ingelheim

usiness year 2012consolidated financial statements2 ACCOUNTING POLICIES2.1 Fixed assetsAcquired intangible assets and tangible assets were carried at cost less straight-line amortisation and depreciationrespectively in line with technical and economic circumstances. This is based on the followinguseful lives:Intangible assetsBuildingsTechnical equipment and machineryOther equipment, operating and office equipment2 to 15 years20 years10 years3 to 10 yearsOnly straight-line depreciation and amortisation is used in the consolidated financial statements. Anticipatedpermanent impairment was shown by extraordinary write-offs. Direct costs of materials and labourcosts, appropriate portions of materials and labour overheads and the depreciation of fixed assets (if causedby production) were taken into account in determining production costs.All capitalised, intangible assets have a limited useful life.Goodwill from the first-time consolidation of shares is usually being amortised over a period of five years.A useful life of ten years was applied to the goodwill for Boehringer Ingelheim Korea Ltd., acquired in2007, as past experience of products, sales markets and the business conditions of Boehringer IngelheimKorea Ltd. has shown that this presents a true and fair view.Financial assets essentially included shareholder rights, securities and loans and are carried at the lower ofcost or fair market value, if impaired.2.2 Current assets and prepaid expensesInventories were carried at the lower of cost and fair market value.Raw materials, consumables and supplies were capitalised at the lower of average acquisition prices or fairmarket value on the balance sheet date.Finished goods and work in progress were measured at production cost on the basis of individual calculations,taking into account the directly attributable costs of materials, direct labour costs, special direct costs,appropriate shares of production and materials overheads and depreciation.Goods for resale are valued at the lower of either purchase cost or fair market value.All identifiable risks in inventory assets arising from above-average storage periods, diminished marketabilityand lower replacement costs were taken into account by appropriate valuation adjustments.Notes to the consolidated financial statements49