Accounting and valuation methods

In general, assets have been valued at their cost of acquisition or manufacture, less scheduled depreciation. Debts have been stated at their updated cost of acquisition. Long-term debts have been stated at their respective current values.

This does not apply to certain financial instruments as defined in IAS 39, which have been stated at their respective current values.

Details on the individual valuation methods applied have been provided in the notes to the individual items.

The following accounting and valuation methods deviate from those required by German Commercial Law (HGB):

Certain financial instruments as defined in IAS 39 have been stated at their respective current values.
Provisions for pensions have been valued using the projected unit credit method. In contrast to German Commercial Law, this approach also accounts for future salary and pension increases.
Provisions for expenses (especially those for deferred maintenance) have not been stated.
Deferred taxes have been calculated using the liability method. In the case of the market valuation of financial instruments without any impact on earnings, corresponding adjustments have been made to deferred taxes, again without any impact on earnings. Deferred tax assets have only been stated to the extent that the utilisation of tax loss carryovers is probable. Deferred tax assets have been offset against deferred tax liabilities and stated on a net basis in view of the fact that the overwhelming share of the respective claims and obligations relate to the same tax authority.
Pursuant to IFRS 3, goodwill is no longer subject to scheduled amortisation. Instead, it is subject to annual impairment tests and to extraordinary goodwill amortisation if required as a result of such tests. Negative goodwill items are released with an impact on earnings immediately following their acquisition.