DHL 2014 Annual Report Download - page 157

Inventories
Inventories are assets that are held for sale in the ordinary course of
business, are in the process of production, or are consumed in the
production process or in the rendering of services. ey are meas-
ured at the lower of cost or net realisable value. Valuation allow-
ances are charged for obsolete inventories and slow-moving goods.
Government grants
In accordance with  , government grants are recognised at
their fair value only when there is reasonable assurance that the
conditions attaching to them will be complied with and that the
grants will be received. e grants are reported in the income
statement and are generally recognised as income over the periods
in which the costs they are intended to compensate are incurred.
Where the grants relate to the purchase or production of assets,
they are reported as deferred income and recognised in the income
statement over the useful lives of the assets.
Assets held for sale and liabilities associated with assets held for sale
Assets held for sale are assets available for sale in their present con-
dition and whose sale is highly probable. e sale must be expected
to qualify for recognition as a completed sale within one year of the
date of classication. Assets held for sale may consist of individual
non-current assets, groups of assets (disposal groups), components
of an entity or a subsidiary acquired exclusively for resale (discon-
tinued operations). Liabilities intended to be disposed of together
with the assets in a single transaction form part of the disposal
group or discontinued operation and are also reported separately
as liabilities associated with assets held for sale. Assets held for sale
are no longer depreciated or amortised, but are recognised at the
lower of their fair value less costs to sell and the carrying amount.
Gains and losses arising from the remeasurement of individual
non-current assets or disposal groups classied as held for sale are
reported in prot or loss from continuing operations until the nal
date of disposal. Gains and losses arising from the measurement at
fair value less costs to sell of discontinued operations classied as
held for sale are reported in prot or loss from discontinued oper-
ations. is also applies to the prot or loss from operations and
the gain or loss on disposal of these components of an entity.
Cash and cash equivalents
Cash and cash equivalents comprise cash, demand deposits and
other short-term liquid nancial assets with an original maturity
of up to three months and are carried at their principal amount.
Overdra facilities used are recognised in the balance sheet as
amounts due to banks.
Non-controlling interests
Non-controlling interests are the proportionate minority interests
in the equity of subsidiaries and are recognised at their carrying
amount. If an interest is acquired from, or sold to, other share-
holders without this impacting the existing control relationship,
this is presented as an equity transaction. e dierence between
the proportionate net assets acquired from, or sold to, another
shareholder / other shareholders and the purchase price is recog-
nised in other comprehensive income. If non-controlling interests
are increased by the proportionate net assets, no goodwill is allo-
cated to the proportionate net assets.
Share-based payments to executives
Equity-settled share-based payment transactions are measured
at fair value at the grant date. e fair value of the obligation is
recognised in sta costs over the vesting period. e fair value of
equity- settled share-based payment transactions is determined
using inter nationally recognised valuation techniques.
Stock appreciation rights are measured on the basis of an
option pricing model in accordance with  . e stock appre-
ciation rights are measured on each reporting date and on the settle-
ment date. e amount determined for stock appre ciation rights
that will probably be exercised is recognised pro rata in income
under sta costs to reect the services rendered as consideration
during the vesting period (lock-up period). A provision is recog-
nised for the same amount.
Retirement plans
ere are arrangements in many countries under which the Group
grants post-employment benets to its employees. ese benets
include pensions, lump-sum payments on retirement and other
post-employment benets and are referred to as retirement bene-
ts, pensions and similar benets, or simply pensions, in these
disclosures. A distinction must be made between dened benet
and dened contribution plans.
Deutsche Post  Group —  Annual Report
151
Consolidated Financial Statements — NOTES — Basis of preparation