Annual Report - Miba

Rate on the
balance sheet date Average Rate
Currencies 01/31/2005 01/31/2004 01/31/2005 01/31/2004
USD 0.76923 0.80808 0.80232 0.87284
GBP 1.44760 1.45985 1.47376 1.43956
SGD 1.46981 0.47495 0.47607 0.50177
SKK 0.02618 0.02448 0.02513 0.02417
Reais on Dec. 31 0.27600 0.27460 0.27552 0.29268
C. Reporting and Valuation Principles
The financial statements of all the consolidated companies were prepared in accordance
with standard reporting and valuation principles. The statements of the companies that are
consolidated according to the equity method were partially adjusted to the Group's
standard valuation guidelines.
1. Fixed Assets
Intangible assets are valued according to IAS 38 at acquisition costs minus scheduled
straight-line depreciation (useful life 3 to 10 years). According to IAS 38.54, research
expenses are not capitalized. Development costs fail to meet all criteria required by IAS
38.57 and are therefore not capitalized either. During the 2004/05 fiscal year, research and
development costs of EUR 11.4 million (10.3 million in the previous year) were charged as
expenses.
Capitalized goodwill is subjected to an annual impairment test according to IFRS 3, which
was applied ahead of schedule from February 1, 2004 onwards. On January 31, 2004, the
book value of goodwill (TEUR 16,697) was classified as new acquisition cost and no longer
subjected to amortization. The comparable period in 2003/04 still included goodwill
amortization in the amount of TEUR 1,490.
The calculation of the impairment requirements was based on future planning assuming
an 8% discounting factor (= Group WACC) and a 2 % growth parameter for the periods 4
to 10. For government perpetuals, a 0 % growth parameter of was assumed. The
calculation is based on a 30 % tax rate.
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