Access America 2006 Annual Report Download - page 37

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Notes to the consolidated
financial statements
Annual Report 2006 35
Explanation of the accounting and valuation policies differing from Swiss law
The most important differences are summarised below.
Investments available for sale (afs investments)
Investments available for sale are shown in the balance sheet at market value with the unrealised
gains / losses being included under other reserves in shareholders’ equity.
Claim equalisation reserves
Claim equalisation reserves and catastrophe reserves are not allowed under Mondial Assistance
Group accounting policies because they do not represent a present obligation towards third
parties.
Claims reserves
Under Mondial Assistance Group accounting policies, claims reserves usually are lower than
under statutory accounting principles as they are calculated at the best estimate of the ultimate
cost. The Swiss Code of Obligations requires a conservative calculation in accordance with
the prudence principles.
Acquisition costs
Under Mondial Assistance Group accounting policies acquisition costs are capitalised and
amortised over the term of policy.
Goodwill
Goodwill with an indefinite useful life is not amortised under Mondial Assistance Group
accounting policies. Impairment testing for goodwill is carried out at least annually and if an
impairment is applicable, it is recognised through the income.
Real Estate
The capitalised cost of buildings is calculated on the basis of acquisition cost and depreciation
over a maximum of 50 years in accordance with the useful life of the real estate. The gross
capitalised values totalled 18.639 million euros at the beginning of the year and 10.987 million
euros at the end of the year. Accumulated depreciation amounted to 10.504 million euros at the
beginning of the year and 2.933 million euros at the end of the year. No unscheduled depreciation
was recorded in 2006.
Tangible Assets
Tangible assets such as equipment, vehicles and hardware are depreciated over 3 to 10 years
according to their useful lives. The gross capitalised values totalled 112.995 million euros at
the beginning of the year and 118.637 million euros at the end of the year. Accumulated
Valuation reserve securities
in thousand EUR 2006 2005
Fixed-income securities and other investments
Cost 530 321 511 099
Fair value 531 616 519 158
Revaluation reserve 1 295 8 059
Shares
Cost 17 17
Fair value 24 22
Revaluation reserve 7 5
Intangible and tangible assets
in thousand EUR intangible assets tangible assets real estate Total
Balance value on December 31st, 2005 38 769 40 854 8 135 87 758
Exchange rate change (1 383) (300) 0 (1 683)
Additions 11 097 24 009 0 35 106
Change scope of consolidation (409) (267) 0 (676)
Disposals (3 008) (16 084) (2) (19 094)
Amortisation (8 234) (4 389) (79) (12 702)
Balance value on December 31st, 2006 36 832 43 823 8 054 88 709