Judgements, estimates and assumptions
The preparation of the consolidated financial statements was based on a number of judgements, estimates and assumptions that had an effect on the value and presentation of the reported assets, liabilities, income and expenses as well as contingent liabilities. Further details on the listed topics and, where applicable, the respective carrying amounts, are included in the notes to the consolidated financial statements in the numbers indicated in the following list.
The following topics, in particular, required judgements in the preparation of these consolidated financial statements:
- Determination of the consolidation group by assessing control opportunities (chapter “Consolidation group”). Aside from special purpose entities this concerns, in particular, investments where control is not necessarily tied in with a majority of voting rights due to special regulations in the Articles of Association.
- Classification of leases as finance lease or operating lease – including sale-and-lease-back transactions (no. 20 “Tangible assets”)
- Classification of real estate assets as investment properties (no. 21 “Investment properties”)
- Classification of financial instruments to the category “held to maturity” (no. 39 “Carrying amounts and fair values according to measurement category”)
Estimates and assumptions
Estimates and underlying assumptions with significant effects relate to the following circumstances, in particular:
- Uniform Group-wide determination of useful lives for limited-life assets (no. 13 “Depreciation/amortisation/impairment losses”, no. 17 “Fixed assets”, no. 19 “Other Intangible assets” and no. 20 “Tangible assets”)
- Event-related impairment tests relating to limited-life assets (no. 13 “Depreciation/amortisation/impairment losses”, no. 17 “Fixed assets”, no. 19 “Other intangible assets” and no. 20 “Tangible assets”)
- Annual goodwill impairment tests (no. 18 “Goodwill” - including sensitivity analyses)
- Recoverability of receivables – particularly receivables from suppliers (no. 23 “Other financial and non-financial assets”)
- Ability to realise tax receivables – particularly from loss carry-forwards (no. 24 “Deferred tax assets/deferred tax liabilities”)
- Measurement of inventories (no. 25 “Inventories”)
- Determination of provisions for pensions (no. 32 “Provisions for pensions and similar commitments”)
- Determination of other provisions – for example, for deficient rental covers, restructuring and warranties (no. 33 “Other provisions [non-current]/provisions [current]”)
Although great care has been taken in making these estimates and assumptions, actual values may deviate from them in individual cases. The estimates and assumptions used in the consolidated financial stetements are regularly reviewed. Changes are taken into account at the time new information becomes available.