AT&S World

From the time of their availability for use, the assets are depreciated
on a straight-line basis over their expected useful lives.
Depreciation is charged on a pro rata temporis basis. Land is not
subject to depreciation.
The depreciation method is uniform for the Group and based on
the following useful lives:
Plants and buildings 15-50 years
Machinery and technical equipment 5-15 years
Tools, fixtures, furniture and
office equipment 3-10 years
Depreciation periods and methods are reviewed annually at the
end of the financial year.
Expected costs for dismantling and removing assets are capitalised
as part of acquisition costs and accounted for by a provision,
provided that there is a legal or factual obligation against third
parties and that a reasonable estimate can be made.
According to IAS 17 “Leases”, leased assets for which the Group
bears substantially all the risks and rewards of ownership are
capitalised at their fair value or the lower present value of the
minimum lease payments. Depreciation is effected over the useful
life of the asset. If at the beginning of the lease it is not sufficiently
certain that the title will pass to the lessee, the leased
asset will be depreciated over the shorter of the two periods, the
lease term or useful life. Financial obligations resulting from future
lease payments are discounted and carried as liability. Current
lease payments are split into repayment and financing costs.
Leased assets under all other lease agreements are classified as
operating leases and attributed to the lessor. Lease payments are
recognised as an expense.
Profits or losses resulting from the closure or retirement of noncurrent
assets, which arise from the difference between the recoverable
and the carrying amounts, are credited or charged to
the income statement.
Consolidated Financial Statements as of 31 March 2011
g. Intangible assets
Patents, trademarks and licenses
Expenditures on acquired patents, trademarks and licenses are
capitalised at cost, including incidental acquisition expenses,
and amortised on a straight-line basis over their useful lives, generally
between 2 and 10 years. Amortisation terms and methods
are reviewed annually at the end of the financial year.
Goodwill
Goodwill, which represents the excess of the cost of an acquisition
over the fair value of the Group’s share of the net assets acquired
at the date of acquisition, is included in intangible assets
at the date of acquisition (refer to a. Consolidation principles).
Research and development costs
Research costs are expensed as incurred and charged to cost of
sales. Development expenditure is also expensed as incurred. An
intangible asset arising from development shall be recognised
if, and only if, an entity can demonstrate all of the following:
the technical feasibility of completing the intangible asset so
that it will be available for use or sale.
its intention to complete the intangible asset and use or sell it.
its ability to use or sell the intangible asset.
how the intangible asset will generate probable future economic
benefits.
the availability of adequate technical, financial and other resources
to complete the development and to use or sell the
intangible asset.
its ability to measure reliably the expenditure attributable to
the intangible asset during its development.
No capitalised development costs have been considered in these
consolidated financial statements.
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