Annual financial statements 2004 - Euler Hermes ...

ACCOUNTS
RECEIVABLE
OTHER ASSETS
DEFERRED ITEMS
Notes to the
Financial Statements
Calculation of current market value
The current market value of the capital investments shown in the balance sheet at acquisition costs
stood at TEUR 686,507 at the end of the business year. In the case of land and buildings this is the
capitalized value on the balance sheet date or, in the case of building work in progress, the book
value.
Other financial investments are on principle valued at their quoted stock exchange or book value
and, in the case of units in investment trusts, at bid value. In the case of shares in group undertakings
the acquisition cost was determined by the equity method.
6 Accounts receivable arising out of 2004 2003
own underwriting business from TEUR TEUR
1. Policyholders 26,525 36,451
2. Intermediaries 605 2,058
Accounts receivable arising out of own underwriting business
Accounts receivable arising out of own underwriting business refer mainly to outstanding premiums.
Amounts presumed irrecoverable have been fully written off. Specific value adjustments were made
for doubtful accounts. General credit risks have been taken account of in addition by a general charge
for bad and doubtful debts.
7 Accounts receivable arising out of reinsurance operations
Accounts receivable arising out of reinsurance operations are shown at acquisition value less necessary
value adjustments.
8 Office equipment is shown at acquisition cost less scheduled depreciation, on a straightline and
reducing balance basis. Low-value assets are fully written off in the year of acquisition. Other assets
are shown at acquisition cost.
Deferred items are shown at the lower of par less necessary value adjustments or realizable cash
value. TEUR 1,561 in premium on registered debentures is included under deferred items on the
assets side.
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