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1.1 Significant accounting policies
Basis of preparation
Autoneum Holding Ltd (“the Company”) was
incorporated on December 2, 2010, as a Swiss
corporation headquartered in Winterthur.
The Company has been listed on the SIX Swiss
Exchange (AUTN, ISIN: CH0127480363) since
May 13, 2011. Autoneum Holding Ltd together
with its subsidiaries will henceforth be referred
to as “Autoneum Group”, “Group” or “Autoneum”.
A list of subsidiaries and associated companies
of Autoneum Group can be found in note 36
on page 102.
The consolidated financial statements have
been prepared in accordance with International
Financial Reporting Standards (IFRS). The
consolidated financial statements are based on
historic cost, with the exception of specific
financial instruments, which are measured at fair
value. The consolidated financial statements
were authorized for issue by the Board of Direc-
tors on March 2, 2016, and are subject to ap-
proval by the Annual General Meeting of share-
holders on March 30, 2016.
The consolidated financial statements are
published exclusively in English. Due to round-
ing, numbers presented throughout this report
may not add up precisely to the totals provided.
All ratios and variances are calculated using
the underlying amount rather than the presented
rounded amount.
Significant accounting judgments,
estimates and assumptions
Financial reporting requires management to
make judgments, estimates and assumptions
that affect the application of the Group’s
accounting policies and the reported amounts
of assets, liabilities, contingent assets and
contingent liabilities at the date of the financial
statements, and reported amounts of revenue
and expenses during the reporting period. When
such estimates and assumptions deviate
from the actual circumstances, the estimates
and assumptions are updated in the reporting
period in which the circumstances have
changed. The estimates, assumptions and judg-
ments relate primarily to the areas of impair-
ment, tangible assets, inventories, employee
benefits, provisions, income taxes and whether
Autoneum has control over an entity.
The most significant elements of estimates
and assumptions are as follows:
Impairment losses on tangible assets are
assessed based on estimated cash flows, which
may vary from actual cash flows. Important
assumptions to consider are useful lives, growth
rates, achievable margins as well as discount
rates.
When assessing inventories, estimates
for their recoverability based on the expected
consumption of the corresponding item are
considered. The valuation adjustments for inven-
tories are determined for each item using a
coverage analysis. The parameters are checked
annually and modified if necessary. Changes
in sales or other circumstances can lead to an
adjustment of the book value accordingly.
For defined benefit plans, actuarial valua-
tions are done regularly, which are the basis for
the employee benefit assets and liabilities in
the balance sheet. These calculations are based
on statistical and actuarial assumptions. In
particular the present value of the defined bene-
fit obligation is affected by assumptions such
as discount rate, expected future salary growth
and the life expectancy. Other assumptions
for the valuation are derived from statistical
data such as mortality tables and staff turnover
rates. Actuaries are independent from
Autoneum. Assumptions made by actuaries may
differ significantly from actual results. These
deviations can ultimately have an effect on the
Notes to the consolidated financial statements
66
Autoneum
Financial Report 2015
Consolidated financial statements