Nabaltec_E_GB2016

USE OF ASSUMPTIONS AND ESTIMATES 71 3. USE OF ASSUMPTIONS AND ESTIMATES Preparation of the consolidated financial statements in accordance with IFRS requires management to make certain assumptions which affect the measurement of assets and liabilities, the disclosure of contingent assets and liabilities as of the reporting date and the recognition of income and expenses. These assumptions and estimates relate primarily to the following: ■ ■ ■ ■ ■ ■ determining the useful lives of property, plant and equipment and intangible assets: the useful lives of fixed assets are based on management’s estimates. The Group reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each year. However, there were no changes to estimated useful lives during the current year. The option in accordance with IFRS 1.16, in conjunction with IFRS 1.18, for measurement of land and buildings at fair value in the IFRS opening balance sheet was exercised. The remeas- urement of land and buildings on 1 January 2007 was performed with due regard for outside expert opinions. Pensions and other post-employment employee benefits: pension plans are measured based on actuarial calculations. Actuarial measurement is performed based on assumptions with regard to discount rates, expected income from plan assets, future increases in wages and salaries, mortality and future pension increases. Such estimates are subject to consider- able uncertainty in view of the long-term nature of these plans. Provisions for pensions and similar obligations amounted to EUR 38,076 thousand on 31 December 2016 (year before: EUR 27,951 thousand). Further details are presented in Section 6.9, “Other current and non-current provisions.” Provisions for environmental damage and waste disposal: these provisions are formed if it is likely that funds will have to be spent in the future for the performance of environmen- tal clean-up and waste disposal measures, if a sufficiently reliable estimate of the costs can be made and if the measures are not expected to generate future benefits. The estimation of future costs involves a great deal of uncertainty, particularly legal uncertainty relating to laws and regulations, as well as uncertainty concerning actual circumstances in the various countries and locations. In particular, the estimation of costs is based on earlier experiences in similar cases, conclusions from expert opinions obtained by the Group, current expenses and recent developments with an impact on costs. Changes in these estimates may affect the future earnings of the entity. As of 31 December 2016, the book value of recognized provisions was EUR 0 thousand (year before: EUR 0 thousand). Measurement of other provisions: provisions are measured using management’s best esti- mate of the amount necessary to settle the current obligation as of the reporting date. As of 31 December 2016, the book value of recognized other provisions was EUR 162 thousand (year before: EUR 154 thousand). We refer to the explanations in Section 6.9, “Other current and non-current provisions,” for further statements and information. Recognition of deferred tax assets: in assessing the realizability of deferred taxes, the Man- agement Board ascertains the likelihood that all deferred tax assets will be realized. The abil- ity to realize deferred tax assets is ultimately contingent upon whether sufficient taxable in- come is earned in the periods in which temporary differences are deductible. If that is not Annual Report 2016 | Nabaltec AG |||| S T N E M E T A T S L A I C N A N I F D E T A D I L O S N O C

Seitenübersicht