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Accruals for Pensions
COURTESY TRANSLATION FROM THE GERMAN LANGUAGE
KABELNETZ NRW HoldCo GmbH, COLOGNE
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2005—(CONTINUED)
Accruals for pensions are carried at the carrying values or net present values for current pensions which were
calculated on the basis of actuarial principles applying Statement of Financial Accounting Standard (“SFAS”) No. 87.
For employees who had the status of civil servants on the date of the takeover of the employment contracts, the
respective pension costs for all periods subsequent to the transfer of these employees will be charged by DTAG. The total
pension obligation as of the date of the transfer of the employment contracts was retained by DTAG due to legal regulations
that preclude transfer of the obligation.
Other Accruals
Other accruals are set up for any pending losses and uncertain liabilities using best estimates.
Liabilities
Liabilities are shown at the repayable amount. The liabilities from the capital lease are stated at net present value.
Deferred Income
Income recorded before the balance sheet date which relates to a certain period after the balance sheet date is carried as
deferred income.
Currency Translation
Receivables, other assets and liabilities in foreign currencies are translated at the lower of the historical rate or the
exchange rate as of the balance sheet date (receivables and other assets) and at the higher of the historical rate or the
exchange rate as of the balance sheet date (liabilities), respectively.
Revenue Recognition
Net revenues include monthly and one-off customer charges and are recognized in the period in which the services are
provided to the customers.
Revenues from the connection of customers to the cable television system are recognized when the connection is
accomplished, limited to the amount of direct selling cost. Any exceeding amount is deferred and recognized over the
expected average customer relationship.
(4) Notes to Consolidated Balance Sheet and Consolidated Income Statement
Fixed Assets
The development of the items of fixed assets during the fiscal year is shown in the following analysis of fixed assets:
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