AT&S World

At the time of acquisition they are stated at cost, including transaction
costs, in subsequent periods at their respective fair values.
Unrealised profits and losses, net of tax, are recognised in
equity and not taken through profit or loss until they are sold or
considered as impaired.
Interest income and dividends from securities available for sale
are included in the income statement under “Financial result”.
When a security available for sale is sold, the accumulated unrealised
profit or loss recognised in equity is included in “Financial
result” in the reporting period.
When a security available for sale is considered impaired, the accumulated
unrealised loss recognised in equity is charged to the
income statement under “Financial result”. An asset is impaired,
if there are indications that the fair value is below its carrying
amount. In particular, this is the case, if the decrease in fair
value is of such extent that the acquisition cost is unlikely to be
recovered in the foreseeable future. Recoverability is reviewed
annually at the balance sheet date.
Furthermore, those financial assets are recognised under available-for-sale
financial assets that have not been allocated to any
of the other categories described. If the current fair value for
listed equity instruments cannot be determined reliably, these
financial assets will be measured at cost. Impairment losses, if
any, are recognised in the income statement, and the respective
impairment losses shall not be reversed.
l. Derivative financial instruments
The Group enters into derivative financial instruments to hedge
against foreign currency fluctuations related to transactions in
foreign currencies – in particular the US dollar. These instruments
mainly include forward contracts, foreign currency options
and foreign exchange swap contracts and are entered into
in order to protect the Group against exchange rate fluctuations
– by fixing future exchange rates for foreign currency assets
and liabilities.
Consolidated Financial Statements as of 31 March 2011
Further the Group manages its interest rate risk by using interest
rate swaps.
Value fluctuations of the hedged positions are compensated by
corresponding value fluctuations of the derivatives. The Group
does not hold any financial instruments for speculative purposes.
The first-time recognition at the conclusion of the contract and
the subsequent measurement of derivative financial instruments
is made at their fair values. “Hedge accounting” in accordance
with IAS 39 “Financial Instruments: Recognition and Measurement”,
according to which changes in fair values of hedging instruments
are recognised in equity, is applied when there is an
effective hedging relationship pursuant to IAS 39 for cash flow
hedging instruments. The assessment of whether the derivative
financial instruments used in the hedging relationship are highly
effective in offsetting the changes in cash flows of the hedged
item is documented at the inception of the hedging relationship
and on an ongoing basis. When “hedge accounting” in equity is
not applicable, unrealised gains/losses from derivative financial
instruments are recognised in the income statement in the
financial result.
m. Cash and cash equivalents
Cash and cash equivalents comprise cash, time deposits, deposits
held at call with banks and short-term, highly liquid investments
with an original maturity of up to three months or less
(commercial papers and money market funds).
n. Non-controlling interests
Non-controlling interests include the following:
22.68% relate to the equity in AT & S Klagenfurt Leiterplatten
GmbH
1.24% relate to the equity in AT&S Korea
The profit/loss for the year and other comprehensive income are
attributed to the owners of the parent company and the noncontrolling
interests. The allocation to the non-controlling interests
is made even if this results in a negative balance of the
non-controlling interests.
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