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

Receivables in current assets are stated at nominal values, less adequate allowances for bad debts and other risks inreceivables.Securities in current assets include securities classified as available for sale and are stated at fair value. Untilrealised, any resulting unrealised gains and losses are credited or charged direct to the fair value reserve inshareholders’ equity, net of deferred taxes.Cash and cash equivalents are included at nominal value.Write-ups of items included in non-current assets and current assets are made when the reason for charging theoriginal impairment loss no longer exists.Provisions for pensions are included as set out in IAS 19. Actuarial reports have been prepared for this purpose.Actuarial gains and losses arising from unexpected changes in the amount of the defined benefit obligation andfrom changes in actuarial assumptions and which lie within a corridor of 10 % of the defined benefit obligation arenot recognised. Such actuarial gains and losses are only recognised over the expected average remaining workinglives of the pension plan beneficiaries to the extent they exceed this corridor.The other provisions cover all discernible risks and uncertain obligations and are stated at their probable amount.Deferred taxes are recognised on temporary differences between the values of assets and liabilities in the IASbalance sheet and the tax balance sheet, as well as on tax loss carry forwards. Deferred taxes assets and deferredtax liabilities are recognised separately on the face of the balance sheet. Deferred tax assets have been offsetagainst deferred tax liabilities to the extent the related taxes on income are imposed by the same tax authorities.Deferred taxes are measured as set out in IAS 12 based on the appropriate local corporate income tax rate. With theexception of goodwill arising on consolidation, deferred taxes are recognised on all temporary differences betweenthe IAS balance sheet and the tax balance sheet.All liabilities are stated at the amounts due for payment.We refer to notes 1.9 and 1.10 for details of the recognition and measurement of financial instruments.Appropriate provisions have been set up for risks arising from contingent liabilities.Lease agreements within the Südzucker Group are all deemed to be operating leases, so lease payments areexpensed when incurred. Südzucker Group is not a lessor in any lease contracts.Research and development expenses are charged to the income statement in the period in which they are incurred.Development costs for new products are not recognised as intangible assets, as future economic benefit can only beproven once the products have been brought to market.F-17