IC Companys – Annual Report 2008/09 0 - IC Companys A/S

Software and IT development is amortised over the useful life of three to five years. Amortisation is provided on a
straight-line basis.
Property, plant and equipment
Property, plant and equipment are measured at historical cost less accumulated depreciation and impairment
losses.
Cost comprises the acquisition price and costs directly related to the acquisition until the time when the asset is
ready for use.
The difference between cost and the expected residual value is depreciated on a straight-line basis over the expected
economic lives of the assets. The depreciation period is determined on the basis of Management’s experience
in the Group’s business area, and Management believes this to be the best estimate of the economic lives of
the assets, which are as follows:
Leasehold improvements up to 10 years
Buildings 25-50 years
Equipment and furniture 3-5 years
If the depreciation period or the residual values are changed, the effect on depreciation going forward is recognised
as a change in accounting estimates.
Gains and losses on disposal of property, plant and equipment are computed as the difference between the selling
price less costs to sell and the carrying amount at the date of disposal. Gains and losses are recognised in the
income statement under other gains and losses.
Impairment
The carrying amount of goodwill is tested at least once a year for impairment together with the other non-current
assets of the cash-generating unit to which the goodwill has been allocated, and is written down to the recoverable
amount through the income statement if this is lower than the carrying amount. The recoverable amount is
generally calculated as the present value of the future cash flows expected to be derived from the business or
activity (cash-generating unit) to which the goodwill relates.
The carrying amount of non-current assets other than goodwill, intangible assets with indefinable useful lives, deferred
tax assets and financial assets is tested annually for indications of impairment. If such an indication exists,
the recoverable amount of the asset is calculated. The recoverable amount is the higher of the fair value of the
asset less costs to sell and the value in use.
An impairment loss is recognised when the carrying amount of an asset or a cash-generating unit exceeds the
recoverable amount of the asset or the cash-generating unit. Impairment losses are recognised in the income
statement under depreciation, amortisation and writedowns.
Impairment write-downs of goodwill are not reversed. Impairment write-downs of other assets are reversed to the
extent changes have occurred to the assumptions and estimates leading to the write-down. Write-downs are only
reversed to the extent the new carrying amount of an asset does not exceed the carrying amount the asset would
have had net of depreciation, had the asset not been written down.
Financial Assets
Securities are measured at their fair value on the balance sheet date.
Other investments are measured at cost or at fair value at the balance sheet date, if this is lower for reasons that
are not considered to be temporary.
Inventories
Inventories are measured at cost using the FIFO method. Inventories are written down to the lower of cost and net
realisable value.
The cost of raw materials and consumables includes the purchase price and direct costs to take delivery of the
products.
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