"Perspectives 2011" - Sustainability and Annual Report (pdf)

Workforce and work environmentEnvironmental and climate protectionFinancial reviewP Supervisory board’s reportP Consolidated management reportq Consolidated financial statementsp Independent auditor’s reporttSustainable developmentFlug hafen München GmbH; €452 thousand fromMAC Grundstücksgesellschaft mbH & Co. KG withFlughafen München GmbH; €322 thousand fromAeroGround Flughafen München GmbH with FlughafenMünchen GmbH; and €107 thousand fromFlughafen München GmbH with Flughafen MünchenBaugesellschaft mbH. The elimination of intragroupprofits on long-term assets from these constructionprojects led to expense of €670 thousand. The eliminationof income at Flughafen München GmbH fromthe sale of long-term assets to AeroGround FlughafenMünchen GmbH, offset against the adjustment foradditional write-downs in the purchaser’s own separatefinancial statement, resulted in a consolidationeffect of €4.038 million being recognized as income.The following were adjusted for consolidated reportingpurposes: provisions in the yearend accounts ofAllresto Flughafen München Hotel und GaststättenGmbH to cover €6.262 million in restoration commitmentstoward Terminal 2 Betriebsgesellschaft mbH& Co. oHG, Flughafen München GmbH and MACGrundstücksgesellschaft mbH & Co. KG, provisionsof €4.057 million for remediation work at FlughafenMünchen GmbH for special purpose entities, and aprovision at Flughafen München GmbH with a valuationdifference of €39.800 million in the consolidatedfinancial statements.II. Accounting and valuation principles1. Intangible and tangible assetsPurchased intangible assets are recorded at theiroriginal cost and depreciated using the straight-linemethod, for the most part assuming a useful life ofthree years.Excess cost over book value from capital consolidationis capitalized as goodwill and depreciated overfive years. Goodwill created through capital consolidationin fiscal 2011 totaled €2.342 million. Existinggoodwill in separate financial statements is alsodepreciated over five years.Tangible assets are valuated at their mandatory capitalizedcost of production or original cost in accordancewith Section 255, Paragraphs 1 and 2 of theGerman Commercial Code. The costs of productioninclude material overheads where appropriate, productionoverhead, and wear, as well as consumptionor other reduction in the useful economic life of anasset if caused by production.Assets with a limited useful life are depreciated usingthe straight-line method over their anticipatedoverall service life in line with the German AirportsAssociation’s tax depreciation tables. Contrary tothese tables, Group buildings are generally depreciatedover a period of 40 to 50 years.The additional depreciation recorded by FlughafenMünchen GmbH and FM Terminal 2 Immobilien-VerwaltungsgesellschaftmbH & Co oHG in the accountsprepared for tax purposes and the accounts preparedfor financial reporting purposes in fiscal 2011 totaled€25.099 million. This concerns buildings as defined inSection 7, Paragraph 4, Item 1 of the German IncomeTax Code that are classed as operating businessassets and are nonresidential in character – essentially,buildings belonging to the passenger handlingfacilities.In fiscal 2008 and 2009, in accordance with the thencurrent fiscal regulations, assets costing between€150 and €1,000 were grouped into collective itemsand depreciated over a period of five years using thestraight-line method, regardless of the assets’ actualuseful life. As of fiscal 2010, assets costing less than€150 and up to €410 are depreciated in full in the yearof their purchase. These low-value assets are retiredafter five years, irrespective of the aforementioneddepreciation methods.135