Südzucker International Finance B. V. Südzucker AG ... - Xetra

Consolidated financial statementsIV. Accounting policiesWhere there are alternative accounting policies available in a specific IAS, Südzucker always uses the benchmarktreatment.Acquired goodwill is recognised and amortised straight line. As set out in IAS 22, a useful life of 20 years has beenassumed for the amortisation of goodwill. Other acquired intangible assets are included at acquisition cost lessscheduled, straight-line amortisation over their expected useful lives.Tangible non-current assets are stated at acquisition or production cost less straight-line scheduled and unscheduleddepreciation. State subsidies and grants are deducted from the acquisition cost. Production cost of internallyconstructedequipment includes the cost of production materials, production wages and an appropriate share ofoverheads; third-party borrowing costs relating to the production are not included. Maintenance expenses arerecorded in the income statement when they are incurred.Scheduled depreciation of non-current assets and of intangible assets, apart from goodwill, is charged based on thefollowing useful lives:Intangible assets, excluding goodwillBuildingsTechnical equipment and machineryOther equipment, factory and office equipment2 to 5 years15 to 50 years6 to 30 years3 to 15 yearsImpairment write-downs are charged as set out in IAS 36 when the value in use of an asset falls below its bookvalue. Value in use is determined as the higher of the asset’s net realisable value or the present value of expectedcash flows from use of the asset.Shares in non-consolidated affiliated companies are included at acquisition cost. Investments in associatedcompanies, unless insignificant, are included using the equity method.The valuation of other investments, securities and loans depends on their classification as held to maturity oravailable for sale. Financial assets which are held to maturity are stated at amortised acquisition cost. Assets whichare classified as available for sale are stated in the balance sheet at fair value, and any unrealised gains and lossesare credited or charged direct to the fair value reserve in shareholders’ equity, net of any deferred taxes.Inventories are stated at acquisition or production cost using average cost or the first-in, first-out method. As setout in IAS 2, the production cost of work in process and finished goods includes direct costs and a reasonableproportion of material and production overheads, including depreciation of production machinery assuming normallevels of production capacity, and a proportion of administrative expenses. Write-downs are made to net realisablevalue where necessary. Specific write-downs are charged against slow-moving items and against items for whichnet realisable value is lower than cost.F-16