DHL 2002 Annual Report Download - page 98

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In previous years, the only negative goodwill from the
first-time consolidation of the Deutsche Postbank group was
deducted from goodwill on the face of the balance sheet in
accordance with IAS 22.64, and income from reversal was
reported in the income statement under other operating
income. This negative goodwill was reversed in full in fiscal
year 2002. Further details can be found in note 8.
Property, plant and equipment
Property, plant and equipment is carried at cost and reduced
by depreciation for wear and tear. In addition to direct
costs, production costs include an appropriate share of
attributable overheads. Borrowing costs are not included in
production costs but are expensed directly. Value added tax
arising in conjunction with the acquisition or production
of items of property, plant and equipment is included in
the cost if it cannot be deducted as input tax. Depreciation
is generally charged using the straight-line method.
Deutsche Post World Net applies the following useful lives:
Items of property, plant and equipment are written
down if there are indications of impairment and if the
recoverable amount is lower than amortized cost. The write-
downs are reversed if the reasons for the impairment losses
no longer apply.
Finance leases
In accordance with IAS 17, beneficial ownership of leased
assets is transferred to the lessee if the lessee bears substan-
tially all the risk and rewards incident to ownership of the
asset. Where Deutsche Post World Net is the beneficial
owner, the asset is capitalized at the date of inception of the
lease at either the fair value or at the present value of the
minimum lease payments, if this is less than the fair value.
Depreciation methods and useful lives correspond to those
of comparable purchased assets.
Noncurrent financial assets
Investments in associates are carried at equity in accordance
with IAS 28 (Accounting for Investments in Associates).
Based on the cost of acquisition at the time of purchase
of the investments, the carrying amount of the investments
is increased or reduced to reflect changes in the equity of
the associates attributable to the investments of Deutsche
Post AG. Goodwill contained in the carrying amounts of
the investments is normally reduced by straight-line
amortization over the expected useful life of 15 to 20 years.
The useful lives are determined and goodwill is regularly
tested for impairment using the same procedures as for the
goodwill of subsidiaries.
Other noncurrent financial assets include in particular
investments in unconsolidated subsidiaries, financial instru-
ments and other equity investments. Under IAS 39, non-
current financial assets are classified as “available for sale” or
“held to maturity”.
Available-for-sale financial instruments are carried
at their fair value, where this can be measured reliably.
Changes in fair value between reporting dates are generally
recognized directly in the revaluation reserve. This reserve
is reversed to income either when the assets are sold or
otherwise disposed of, or if the fair value of the assets falls
more than temporarily below their cost. Held-to-maturity
financial instruments are carried at amortized cost at the
balance sheet date. Impairment losses are charged to income
if the recoverable amount falls below the carrying amount.
Financial instruments classified as “loans and
receivables originated by enterprise” (originated loans and
receivables), which include long-term loans, continue to be
measured at amortized cost.
Financial Statements
Notes
years
Buildings 6 to 80
Technical equipment and machinery 3 to 13
Passenger vehicles 3 to 8
Trucks 3 to 8
Aircraft 15 to 20
Other vehicles 4 to 10
IT systems 3 to 10
Other operating and office equipment 4 to 10
Useful lives