DHL 1998 Annual Report Download - page 77

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73
Receivables and other assets are stated at nominal amounts less appropriate
individual valuation allowances. Noninterest-bearing receivables with a
maturity of more than one year are stated at present value. A general
valuation allowance is provided to cover general credit risks.
Marketable securities are valued at the lower of cost or market price.
The accruals for pensions and similar obligations were determined by the
“Teilwert” method described in section 6a of the Income Tax Law (approx-
imately equivalent to the “entry-age normal” method) using actuarial
methods and applying the interest rate of 6 per cent required by that
statute. The new 1998 Life Expectancy Tables for the calculation of pension
accruals were applied in full.
Accruals for taxation and other accruals present provision for all identifi-
able risks and uncertain liabilities. They have been set up in the amounts
dictated by prudent business judgement. The premises for the valuation of
amounts accrued for the expected shortfall between the sources of regular
income of the Postal Civil Servants’Health Insurance Fund and the benefits
paid were modified. Calculations were based on an interest rate of 6 per
cent (1997: 7 per cent) and on a 3.5 per cent increase (1997: 5 per cent)
in benefits and contributions. The new 1998 Life Expectancy Tables were
again been applied.
Liabilities are stated at repayment amount. Recurring obligations are stated
at present value. Foreign currency receivables and liabilities are translated
at the lower (receivables) or higher (payables) of the historical rate or the
year-end rate of exchange.
III. Notes to the Group Balance Sheet and the Group Profit and
Loss Account
A. Notes to the group balance sheet
(1) Details of noncurrent assets are given in the schedule forming Appendix 1
to the Group Annex.
(2) Asset-side accounting differences resulting from capital consolidation
amounting to DM 44 million (posted as goodwill in 1997) are deducted
from the reserves for the purpose of uniform balance-sheet treatement of
all asset-side accounting differences. The group results have thus been
eased of depreciations amounting to DM 16 million, compared with 1997.
(3) Housing promotion loans include DM 16 (1997: 189) million of loans to
participations.
(4) Trade receivables amounting to DM 0 (0) million and other assets amount-
ing to DM 7 (8) million provide for a maturity of more than one year. All
other receivables provide for a remaining maturity of less than one year. The
remaining assets include receivables from Deutsche Post Pensions-Service
e.V. as well as from postal agencies, postal staff and financial authorities.
(5) Prepaid expenses and deferred charges include DM 6 (8) million of un-
amortized debt discount which is being written off over the term of the debt.