DHL 2013 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 con-
sumed in the production process or in the rendering of services.
ey are measured at the lower of cost or net realisable value.
Valuation allowances 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 pres-
ent condition 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 con-
sist of individual non-current assets, groups of assets (disposal
groups), components of an entity or a subsidiary acquired exclu-
sively for resale (discontinued 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 remeas-
urement of individual non-current assets or disposal groups clas-
si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 discontin-
ued operations classied as held for sale are reported in prot or
loss from discontinued operations. 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 ma-
turity 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
shareholders without this impacting the existing control relation-
ship, 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 recognised in other comprehensive income. If non-controlling
interests are increased by the proportionate net assets, no goodwill
is allocated to the proportionate net assets.
Share-based payments to executives
Equity-settled share-based payment transactions are meas-
ured 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 internationally recognised valuation techniques.
Stock appreciation rights are measured on the basis of an
option pricing model in accordance with  . e stock appreci-
ation rights are measured on each reporting date and on the settle-
ment date. e amount determined for stock appreciation 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 referred to in these disclosures as
retirement benets, pensions and similar benets, or simply pen-
sions. A distinction is made between dened benet and dened
contribution plans.
153Deutsche Post DHL 2013 Annual Report
Notes
Basis of preparation
Consolidated Financial Statements