Uster Technologies Ltd | Annual Report 2009 Uster Technologies ...

Financial AssetsA financial asset is assessed at each reporting date to determine whether there is any objective evidence thatit is impaired. An impairment loss in respect of a financial assets measured at amortized cost is calculatedas the difference between its carrying amount and its present value of the future estimated cash flows discountedat the original effective interest rate. An impairment loss in respect of an available for sale financialasset is calculated by reference to its fair value. Individually significant financial assets are tested for impairmenton an individual basis. In relation to trade receivables a provision for impairment is made when thereis objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor)that the Group will not be able to collect all of the amounts due under the original terms of the invoice. Thecarrying amount of the receivable is reduced through use of an allowance account. Impaired debts are derecognizedwhen they are assessed as uncollectible.3.11 Pension BenefitsDefined Benefit Pension PlanUster Technologies Ltd provides pension benefits for its employees in Switzerland in the event of retirement,disability, and death. The pension scheme is organized as a separate legal entity and is funded in accordancewith legal requirements.Costs and liabilities related to the defined benefit pension plan are determined using the projected unitcredit method with attribution of benefit by service pro rata.The amount recognized in the Statement of Financial Position in respect of defined benefit pension plansis the fair value of plan assets less the present value of the defined benefit obligation at reporting date,together with adjustments for unrecognized actuarial gains and losses, unrecognized past service costand for unrecognized assets.Actuarial gains and losses are recognized as income or expense when the cumulative unrecognized actuarialgain or loss exceeds 10.0% of the higher of the defined benefit obligation and the fair value of the planassets. These gains or losses are recognized over the expected average remaining working life of the employeesparticipating in the plan.Defined Contribution PlansFor employees in other subsidiaries the company pays contributions to the separate legal entity as the plans’rules require. The regular contributions constitute net periodic costs for the year in which they are due andas such are included in personnel expenses.3.12 LeasesLeases in terms of which the Group assumes substantially all the risks and rewards of ownership are classifiedas finance leases. As of December 31, 2009 and 2008, the Group did not have any finance leases.All the Group’s leases are operating leases and the leased assets are not recognized in the Group’s Statement ofFinancial Position. Operating lease payments are recognized as an expense in the Statement of ComprehensiveIncome on a straight-line basis over the lease term. Lease incentives received are recognized as an integral partof the total lease expense over the term of the lease.Uster Group – Notes to the Consolidated Financial Statements 2009 67