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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 reclas-
sified to the income statement when they are
sold. Any impairment is charged to the income
statement immediately. They are included in
non-current assets unless management intends
the disposal within twelve months after the
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 purposes
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.
1.11 Inventories
Raw material, consumables and purchased parts
are valued at the lower of average cost or net
realizable value. Semi-finished goods and fin-
ished goods are valued at the lower of manufac-
turing cost or net realizable value. Valuation
adjustments are made for obsolete materials
and excess stock.
1.12 Trade receivables
Trade receivables are classified as “loans and
receivables” and are stated at amortized cost,
which usually equals the original invoice value
less any impairment loss. The loss is measured
as the difference between the invoiced amount
and the expected payment. The allowances
are established based on maturity structure and
identifiable solvency risks.
1.13 Cash and cash equivalents
Cash and cash equivalents include bank accounts
and time deposits with original maturities
from the date of acquisition of up to three months.
1.14 Equity
Ordinary shares are classified as equity since
the shares are non-redeemable and any dividends
are discretionary.
When shares are repurchased, the amount
of the consideration paid is recognized as a
deduction from equity and presented as a sepa-
rate component in equity. When treasury shares
are sold or reissued subsequently, the amount
received is recognized as an increase in equity
and the resulting surplus or deficit on the
transaction is recognized in retained earnings.
1.15 Provisions
Provisions are recognized when the Group has
a present legal or constructive obligation as
a result of past events, it is probable that an out-
flow of resources will be required to settle the
obligation, and the amount can be reliably esti-
74
Autoneum
Financial Report 2016
Consolidated Financial Statements