Annual Report - Miba

The annual financial statements were prepared in accordance with the principles of proper
accounting as well as the general premise of giving a true and fair view of the company’s
net worth, financial and earnings positions.
The annual financial statements were compiled according to the principle of completeness.
The valuation was based on the assumption that the company will remain in business.
The unit account method was applied in the valuation of assets and liabilities.
The principle of caution was adhered to by reporting only revenue realized as of the
balance sheet date.
All recognizable risks and impending losses, which occurred during the 2004/05 fiscal year
or in a previous fiscal year were taken into consideration.
The valuation methods previously used were retained.
Intangible assets are recognized at acquisition cost, if acquired against payment, and are
depreciated over a period not exceeding five years.
Property, plant and equipment are recognized at acquisition cost or cost of manufacturing,
minus scheduled depreciation.
Assets of minor value are depreciated in full during the year of acquisition.
Unscheduled depreciation is carried out if a valuation at a lower value becomes necessary
or if permitted by special tax provisions.
Financial assets are either valued at acquisition cost or at a lower attributable value, if
applicable.
Receivables and other assets are reported at nominal value.
II Reporting and Valuation Principles
The allocations to provisions take into account all discernible risks and impending losses,
as required by law.
The provisions for severance payments and similar payments (anniversary bonuses) are
calculated according to standard actuarial principles based on a 4.75 % interest rate (5.0 %
in the previous year), a 2.5% annual salary increase and a fluctuation discount based on
years of service. The assumed retirement age is the earliest possible age for entitlement
to the (preliminary) retirement pension as defined by the 2004 Pension Reform and under
consideration of the transitional regulations. The calculation was based on the “projected
unit credit method” according to IAS 19.
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