Nabaltec_E_GB2016

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 76 MAJOR ACCOUNTING POLICIES Following initial recognition, loans and receivables are measured at amortized cost using the effective interest method, less impairment. Income and losses are recognized in profit and loss, upon derecognition of the loans and receivables, upon impairment and in the course of amortization. Derecognition of financial assets A financial asset is derecognized when the company loses its ability to dispose over contractual rights to the cash flows comprising the financial asset. If the Group transfers its contractual rights to the cash flows generated by an asset but neither transfers nor retains substantially all of the risks and rewards associated with ownership of the asset, so that the Group retains its ability to dispose over the transferred asset, the Group continues to recognize the transferred asset to the extent that it has a continuing involvement in the asset. IMPAIRMENT OF FINANCIAL ASSETS 4.11 On each reporting date, a test is performed to determine whether financial assets or groups of financial assets are impaired. An impairment loss is recognized immediately in profit and loss. Trade receivables are recognized at amortized cost less reasonable allowances. Allowances on accounts receivable are performed based on the probability of default. Other financial assets and accounts receivable are recognized at amortized cost. Allowances are performed on a case-by-case basis if doubts exist as to the recoverability of other assets. INVENTORIES 4.12 Inventories are measured at cost or at net realizable value, whichever is lower. Raw materials and supplies are recognized upon addition at cost plus ancillary costs less price reductions. Costs are determined using the weighted average method. Finished goods and work in process are capitalized at their production cost. Production costs include directly attributable production costs as well as a share of attributable fixed and variable overhead production costs. The share of overhead costs is determined based on normal employment. Cost of sales, cost of general administration and borrowing costs are not capitalized. Finished goods are combined into measurement units as part of a group valuation. On the reporting date, inventories are written down to account for risks arising from extended storage or diminished realizability, taking into account their net realizable value. 4.13 CASH AND CASH EQUIVALENTS Cash and cash equivalents in the balance sheet include cash on hand, bank balances and short- term deposits within original terms to maturity of less than three months. The same definition is used for the purposes of consolidated cash flow statement. Measurement is performed at amortized cost. |||| Nabaltec AG | Annual Report 2016

Seitenübersicht