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All other leases are classified as operating
leases. Payments in respect of operating leases
are charged to the income statement on a
straight-line basis over the duration of the lease.
1.7 Intangible assets
Intangible assets such as product licenses,
patents and trademark rights as well as software
acquired from third parties are included in the
balance sheet at acquisition cost and are amor-
tized on a straight-line basis over a period of
up to eight years. The residual values and useful
lives of intangible assets are reviewed, and
adjusted if appropriate, at each balance sheet
date. Autoneum has neither in the current
reporting period nor in the prior period intangible
assets that have an indefinite useful life re-
corded in the balance sheet. Autoneum has no
goodwill capitalized in the balance sheet.
1.8 Impairment of assets
Tangible assets and intangible assets are tested
for impairment if there are indications that,
due to changed circumstances, their carrying
value may no longer be fully recoverable. If such
a situation arises, the recoverable amount is
determined. This is the higher of its value in use
and its fair value less cost to sell. Value in use
is based on the estimated future cash flows, dis-
counted to their present value using a pre-tax
discount rate that reflects current market assess-
ments of the time value of money and the risks
specific to the asset. If the recoverable amount
is below the carrying amount, a corresponding
impairment loss is recognized in the income
statement. Where the recoverable amount cannot
be determined for an individual asset, it is
determined for the cash-generating unit to which
the asset belongs. To determine the value of
an asset, estimates of the expected future cash
flows from both usage and disposal are made.
1.9 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.
1.10 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 in-
come 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
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Autoneum
Financial Report 2016
Consolidated Financial Statements