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.
Information on the key discretionary decisions that materially affected the amounts reported in these consolidated financial statements can be found in the following notes:
- 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 simple 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. 2 “Other operating income” and no. 20 “Property, plant and equipment”)
- Classification of real estate assets as investment properties (no. 21 “Investment properties”)
- Classification of financial instruments to the category “held to maturity” (no. 40 “Carrying amounts and fair values according to measurement category”)
Estimates and assumptions
Information on estimates and underlying assumptions with significant effects on these consolidated financial statements is included in the following notes:
- Uniform group-wide determination of useful lives for limited-life assets (no. 14 “Depreciation/amortisation/impairment losses”, no. 19 “Other intangible assets” and no. 20 “Property, plant and equipment”)
- Event-related impairment tests relating to limited-life assets (no. 14 “Depreciation/amortisation/impairment losses”, no. 19 “Other intangible assets” and no. 20 “Property, plant and equipment”)
- 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 statements are regularly reviewed. Changes are taken into account at the time new information becomes available.