Annual Report - Miba

y the 2004 Pension Reform (2003 Budget Accompanying Act) and under consideration of
the transitional regulations. A company-specific reduction for fluctuations was applied.
Post-retirement provisions are only required for the Group's Austrian companies. These
are calculated based on accepted actuarial principles using the projected unit credit
method at an assumed interest rate of 4.75 % p.a. (5.00 % p.a. in the previous year) and
including a 2.75% salary increase (2.50 % p.a. in the previous year) or a 1% pension
adjustment (0 % for fixed pension commitments). A reduction for fluctuations was not
applied.
Any actuarial profits or losses resulting from changes in actuarial assumptions (demographic
assumptions, such as expected mortality, fluctuation rate, early retirement, or
financial assumptions, such as discount rate, future salary and benefit level) are reported
as income or expense for the period. A fluctuation corridor for the cash value of the
obligation according to IAS 19.92 et seqq. is currently not applied.
Contribution-based pension commitments are granted by two foreign subsidiaries, where
the employer contributes to an external fund. The contributions to the fund represent
expenses for the current period. Expenses reported in the 2004/05 fiscal year amounted
to TEUR 574 (TEUR 625 in the previous year).
4. Other long-term and current liabilities
All liabilities are reported at their repayment value. Foreign currency liabilities are stated
at the average rate on the balance sheet date.
Accruals are reported under other long-term or current liabilities and include all identifiable
risks and contingent liabilities prior to balance sheet preparation. They are reported at the
most probable value based on prudent examination.
5. Revenue recognition
Revenue from the sale of products and goods is recognized at the time the risks and benefits
are transferred to the buyer.
Revenue from long-term production orders is recognized according to IAS 11 based on the
percentage of completion method.
Interest income is recognized in proportion to time based on the effective interest yield of
the asset. Dividend income is reported at the time the legal claim arises.
89