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Investments in affiliated companies and participat-
ing interests are recorded at acquisition cost, loans
at nominal value.Where required, the valuation is
made at the lower fair value.
Inventory (supplies) are recorded at acquisition cost
taking into consideration the lower of cost or market
principle. All storage materials are depreciated at a
suitable amount based on the storage period and the
item’s limited usability. Advertising and mailing
materials are assessed at fixed value.
Accounts receivable and other assets are recorded at
par value. Default risks in trade accounts receivable
are taken into account by means of a lump specific
allowance. The lump specific allowance on trade
accounts receivable was determined based on a
depreciation rate of 70% for receivables more than
a year old as of the reporting date, and based on a
depreciation rate of 10% for receivables more than
6 months old. Receivables dating back less than one
year are depreciated separately at 3% and 5%,
respectively, for domestic and foreign receivables. In
justified cases, individual allowances are deducted
insofar as identifiable risks exist.
Cash on hand and balances with credit institutions
are valued at par.
Payments made in the fiscal year under review for
the following year are recorded as prepaid/deferred
items.
Subscribed capital is valued at par and has been
completely paid up.
Provisions take into account all identifiable risks and
uncertain obligations. Valuation is calculated in
accordance with the required settlement amount as
determined by a reasonable commercial assessment
under consideration of estimated future cost
increases. Provisions with a term to maturity of
more than one year are discounted at a rate
appropriate to their duration based on the average
market interest rate as of 31 December 2015, for the
prior seven years as published by the German
Bundesbank.
Provisions for pensions and similar obligations, as
well as the employee anniversary payouts listed
under other provisions, are calculated in line with
the projected unit credit method on the basis of
actuarial calculations that utilize Klaus Heubeck’s
“Richttafeln 2005 G”, which take generation-based
life expectancies into consideration. These provisions
are discounted as at 31 December 2015 on the basis
of the average market interest rate for the prior 7
years as published by the German Bundesbank,
whereby this average rate results from an assumed
term to maturity of 15 years (§ 253 par. 2 cl. 2
HGB). This interest rate is 3.90%. Further calculation
assumptions relative to pension provisions were
based on pension increases of 0% and 2%.Wage
and salary increases were not factored in.Where
provisions for employee anniversaries at the
company are concerned, assumptions were based on
annual wage and salary increases of 2% as well as a
fluctuation rate of 3.32%.
Provisions for semi-retirement were calculated in
accordance with the block model. These provisions
were discounted at an interest rate of 2.18% that
adequately takes into account risks and terms to
maturity; this rate was determined in accordance
with actuarial principles and in line with § 253 par. 2
cl.1 HGB. Klaus Heubeck’s “Richttafeln 2005 G”
served as the basis for the calculations.
Provisions for contingent losses from events are
made on the basis of the coverage contribution 2,
taking into account specific administrative and
event-related overhead costs. Overhead costs
(particularly the costs for hall rental and deprecia-
tion) are assigned to the individual events at an
individual cost unit rate for each square metre used.
Provisions for contingent losses from interest-rate
cap agreements are assessed at the negative market
value of the interest-rate swap.