Notes to the Financial Statements
Accounting and valuation principles
B. Intangible assets
Intangible assets are stated at cost less scheduled depreciation over their useful lives.
C.I. Real property, leasehold rights and buildings, including buildings on land not owned
Real property is carried at the cost of its acquisition or construction less the maximum depreciation allowed for tax purposes.
C.II. Investments in affiliated companies and participations
Investments in affiliated companies and participations are stated at cost where no depreciation was necessary.
Loans to affiliated companies are stated at face value.
C.III. Other investments
Shares, investment certificates and other non-fixed-interest securities as well as bearer bonds and other fixed-interest securities are posted at the lower of cost or market value.
The value of securities designed to serve long-term business interests was calculated for the first time on the basis of the moderated lower-of- cost-or-market principle.
Claims from mortgages, land charges and annuities are carried at the amount to be repaid.
Registered bonds, debentures and loans as well as investments grouped under Other Loans and Other Investments are stated at face value.
Registered zero bonds and zero loans against borrower’s notes are carried at cost of acquisition plus effective interest.
Rebates and discounts on mortgages, registered bonds debentures and loans as well as on Other loans are posted pro rata – according to the term of the individual asset – as deferred income; premiums are posted on a similar basis as prepaid expenses.