Service-oriented - Die Schweizerische Post

104 Annual Report | Financial Report | Financial statements of Swiss Post Group
Major renovations and other costs that add value are recognized as part of the cost of the assets and
depreciated over their estimated useful lives. Costs for repairs and maintenance are recognized as expenses.
Interest on borrowings for assets under construction is not capitalized but carried as an expense.
Leases
Lease agreements for properties, installations, other property, plant and equipment and vehicles where Swiss
Post substantially assumes all risks and rewards incidental to ownership are treated as finance leases. The
fair value of the leased object is recognized at inception of the lease and carried as an item of property, plant
and equipment. Future lease payments are discounted and posted as a liability. Each lease payment is broken
down into amortization and interest expense components. The amortization component is deducted from
the recognized lease obligation.
The other lease agreements are recognized as operating leases. The lease payments are carried in the income
statement over the term of the lease.
In classifying long­term property leases, land and building elements are assessed separately. Subject to certain
conditions, buildings are accounted for as finance leases. As a rule, leases in respect of plots of land are classified
as operating leases due to the indefinite useful life.
Intangible assets
In the event of a business combination, recognized goodwill is carried in the balance sheet at cost less impairment.
In the event of an acquisition, the purchase price is allocated among the identifiable assets and liabilities.
Additions of intangible assets not acquired through business combinations are recognized at cost and written
down over the period of their useful life. The estimated useful lives of intangible assets are reviewed on a
regular basis.
Impairment (property, plant and equipment and intangible assets)
Items of property, plant and equipment and intangible assets (excl. goodwill) are checked regularly to determine
if there are signs of overvaluation. If there are signs of overvaluation, the carrying amount is compared
with the net recoverable amount (the higher of net selling price and value in use). If the carrying amount
of an asset exceeds its recoverable amount, an impairment equal to the difference between the carrying
amount and the recoverable amount is recognized in the income statement. The carrying amount of goodwill
is reviewed at least annually.
Customer deposits
Customer deposits held with PostFinance such as Yellow Accounts, Deposito Accounts and investment accounts,
as well as fixed­term deposits, are measured at amortized cost, which usually corresponds to the face
value.
Other financial liabilities
Other financial liabilities comprise amounts due to banks (which are measured at amortized cost), derivatives
measured at fair value, finance lease obligations and repurchase transactions.
Provisions
Provisions are made provided that – at the time the balance sheet is drawn up – a past event has resulted in a
present obligation and a cash outflow is probable and can be measured reliably.
Restructuring provisions are made only upon presentation of a detailed plan and following the necessary communication.
Swiss Post bears a number of risks itself in accordance with the principle of self­insurance. Provisions are made
for expected expenses arising from claims incurred that are not insured externally.