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asset, estimates of the expected future cash
flows from both usage and disposal are made.
Research and development
Research costs are recognized in the income
statement when incurred. Development costs for
major projects are capitalized as intangible
assets if the cost can be measured reliably, if it
can be demonstrated that the project is tech
nically feasible and is expected to generate future
economic benefits and if Autoneum plans to
provide sufficient resources in order to complete
the development and to use or sell the intan
gible asset.
Financial instruments
All financial assets not carried at fair value
through profit or loss are initially recognized at
fair value plus transaction costs. Financial assets
carried at fair value through profit or loss are
initially recognized at fair value, and transaction
costs are expensed in the income statement.
Subsequent valuation depends on the cate-
gory into which the financial assets are classified.
Autoneum distinguishes between the following
categories:
Financial assets at fair value through profit
or loss include financial assets held for trading
and those that are designated as such at incep-
tion. Assets in this category are presented as
current assets if they are either held for trading
or are expected to be realized within twelve
months after the balance sheet date. For sub
sequent valuation, changes in fair value are
recognized in the income statement. Derivative
financial instruments with positive replacement
value and marketable securities are assigned to
this category.
Loans and receivables are non-derivative
financial assets with fixed or determinable
payments that are not quoted in an active market.
They are included in current assets, except for
maturities greater than twelve months after the
balance sheet date, in which case they are
presented as non-current assets. Subsequently,
they are valued at amortized cost less impair-
ment losses.
Available-for-sale financial assets are
non-derivative financial assets that are either
classified as such or not assigned to any of the
above categories. They are measured at market
value as of the balance sheet date. Changes
in the value are recorded in other comprehensive
income prior to sale, and reclassified to income
statement when they are sold. Any impairment
is charged to the income statement immedi-
ately. They are included in non-current assets
unless management intends the disposal
within twelve months after balance sheet date.
Autoneum has no financial instruments
that are classified as held-to-maturity.
Financial liabilities at fair value through
profit or loss are either held for trading purpos-
es or designated as such. At their initial recog
nition and subsequently, financial liabilities at
fair value through profit or loss are measured
at fair value. Transaction costs directly identifiable
to the purchase of these liabilities are immedi-
ately expensed. Derivative financial instruments
with negative replacement values are assigned
to this category.
All other financial liabilities are measured
at amortized cost. Mainly trade payables, bor-
rowings and other liabilities are assigned to this
category. They are recognized initially at fair
value, net of transaction costs incurred. Subse-
quently, these financial liabilities are stated
at amortized cost. Any difference between the
proceeds (net of transaction costs) and the
redemption value is recognized in the income
statement over the period of the obligation
using the effective interest method.
Inventories
Raw material, consumables and purchased parts
are valued at the lower of average cost or net
realizable value. Semi-finished goods and finished
goods are valued at the lower of manufacturing
69
Autoneum
Financial Report 2015
Consolidated financial statements