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Accounting and valuation principles
In the case of operating leases, lease payments are recognized as expenses.
Shares in non-consolidated affiliated companies and other participations are shown at acquisition cost or at amortized cost.
Shares in associated companies are stated at their updated pro-rata equity values.
Interest-free and low-interest loans are shown at their discounted values.
Inventories are shown at Group acquisition or production cost using the permitted simplification procedures or at the market value, where this is lower. Manufacturing cost includes directly attributable costs as well as production and material overheads and depreciation. Where necessary, adjustments are made to reflect lower sales market prices.
Receivables and other assets are recognized at amortized cost, which is approximately equivalent to the fair value of the assets concerned. Interest-free receivables with terms of more than one year are shown at their discounted values. Foreign-currency receivables are converted using the exchange rate as of the balance sheet date.
In principle, securities carried as fixed or current assets are available for disposal. Such securities are therefore recorded at the market value as of the balance sheet date. Value changes are shown under partners' equity with no effect on net income.
Cash at bank or in hand is shown at its nominal value.
Partners' equity is shown following the appropriation of profit by the parent company.
Provisions for pensions are determined by the projected unit credit method using actuarial principles, taking into account future income and pension adjustments.