2. Accounting Principles and Valuation Methods
The same accounting methods and consolidation principles have been applied in preparing these condensed Consolidated Financial Statements as in the Consolidated Financial Statements as of December 31, 2023. A detailed description of these methods is published in the Notes to the Consolidated Financial Statements in the 2023 Annual Report. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES.
No new or amended standards came into force in the current reporting period that had an impact on the Group’s accounting policies.
Valuation methods | T025 |
|---|---|
Balance sheet item | Valuation method |
Assets |
|
Goodwill | Acquisition cost less potential impairment losses |
Other intangible assets (excluding goodwill) – finite useful lives | Amortized acquisition or production cost |
Other intangible assets (excluding goodwill) – indefinite useful lives | Acquisition cost less potential impairment losses |
Property, plant and equipment | Amortized cost |
Derivative financial assets: |
|
Classification as a hedge of a forecast transaction (cash flow hedge) | According to the rules of hedge accounting |
Classification as a hedge of a change in fair value (fair value hedge) | According to the rules of hedge accounting |
Without hedge accounting | At fair value through profit or loss |
Inventories | Lower of acquisition or production cost and net realizable value |
Other non-financial assets | Amortized cost |
Other financial assets | Amortized cost |
Trade and other receivables | Amortized cost |
Trade receivables, available for sale | At fair value through profit or loss |
Contract assets | Percentage-of-completion method less potential impairment |
Cash and cash equivalents | Nominal value/ amortized cost |
Liabilities |
|
Pension obligations | Projected unit credit method |
Other accrued liabilities | Present value of future settlement amount |
Loans | Amortized cost |
Other non-financial liabilities | Amortized cost |
Lease liabilities | Valuation based on IFRS 16.36 |
Other financial liabilities: |
|
Financial liabilities at cost (FLAC) | Amortized cost |
Derivative financial liabilities: |
|
Classification as a hedge of a forecast transaction (cash flow hedge) | According to the rules of hedge accounting |
Classification as a hedge of a change in fair value (fair value hedge) | According to the rules of hedge accounting |
Without hedge accounting | At fair value through profit or loss |
Contingent consideration (contingent purchase price liabilities) | At fair value through profit or loss |
Trade and other payables | Amortized cost |
The Consolidated Statement of Comprehensive Income is prepared using the nature of expense method.
The condensed Consolidated Interim Financial Statements are presented in euros (EUR).
Income tax expense is recognized in each interim period based on the best estimate of the weighted average annual income tax rate expected for the full fiscal year.
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.