AEG 21604 G Bedienungsanleitung PDF herunterladen (Seite 509)

F-268

Financial fixed assets including loan receivables

Investments in participating interests are valued at cost. Upon negative equity of the participations the invest-

ments are valued at nil unless the Company guarantees for the debts of the respective participating interest, a

provision is recognised. This provision is primarily recognised to the debit of the receivables on the respective

participating interest and for the remainder presented under provisions for the part of the share of the losses in-

curred by the participating interest, or for the estimated payments by the company on behalf of these participat-

ing interests.

Loans granted and other receivables are carried at amortized cost. The interest is included in other receivables.

Dividends are recognised in the statement of income, section financial income in the period in which they are

declared. Interest income is recognised in the profit and loss account as it accrues, using the effective interest

method. Any profit or loss is recognised in the profit or loss as accounted for under financial income or ex-

penses.

Inventories and WIP

Inventories and work in progress are measured at the lower of cost and net realizable value. Cost is primarily

calculated on a weighted average price basis. Reserves for inventories and work in progress are calculated based

on an analysis of foreseeable changes in demand, technology or the market, in order to determine obsolete or

excess inventories and work in progress. In the case of manufactured inventories and work in progress, cost

includes an appropriate share of production overheads based on normal operating capacity. Net realizable value

is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling

expenses.

Reserve for write-downs of inventories and work in progress

Inventories and work in progress are measured at the lower of cost or net realizable value. Cost is primarily cal-

culated on a weighted average price basis. Reserves for inventories and work in progress are calculated based on

an analysis of foreseeable changes in demand, technology or the market, in order to determine obsolete or excess

inventories and work in progress.

Receivables

A receivable is impaired if objective evidence indicates that a loss event has occurred after the initial recognition

of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can

be estimated reliably.

The Company considers evidence of impairment for receivables at a specific asset and collective level. All indi-

vidually significant receivables are assessed for specific impairment. All individually significant receivables

found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but

not yet identified. Receivables that are not individually significant are collectively assessed for impairment by

grouping together receivables with similar risk characteristics.

In assessing collective impairment the Company uses historical trends of the probability of default, timing of

recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current eco-

nomic and credit conditions are such that the actual losses are likely to be greater or less than suggested by his-

torical trends.

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AEG 21604 G Bedienungsanleitung Seite 509