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ePaper created 2015-05-06, 08:22:31 | version 1.38.0
66 Deferred tax assets/liabilities (see (33)): The recoverability of deferred tax assets depends on the future taxable earnings of each company. If there is doubt as to whether future tax benefits can be recovered, deferred tax assets are written down by an appropriate amount. The recoverability of deferred tax assets is assessed on the basis of internal projections of the company’s future earnings. Receivables (see (12)) are measured at amortized cost using the effective interest method. Any impairment losses recognized on receivables are recognized in the income statement. Indications of impairment include information that the debtor is in financial difficulties and payments falling into arrears. Regional and sectoral circumstances are taken into account when assessing the need to recognize impairment losses. When calculating impairment losses, empirical values regarding the solvency of the customer as well as factors such as the age structure of the receivables, arrears, any insurance cover, and customer-specific risks are taken into account. Provisions for pensions and similar obligations (see (23)) are recognized using actuarial methods. Assumptions are used for the following measurement parameters in addition to the discount rate: future trends in salaries and pensions, staff turnover, and the life expectancy of pension beneficiaries etc. The interest rate used to calculate interest cost and to measure the defined benefit obligation of fund-linked pension plans is also used to calculate the interest income on plan assets. Actuarial gains and losses are recognized in other comprehensive income. They arise when actual trends in pension liabilities and plan assets diverge from the assumptions made at the beginning of the year and when actuarial assumptions are updated. Other provisions (see (22)) cover risks such as those arising from legal disputes. In order to assess the amount of the provision, the facts and the individual claims asserted are appraised, the outcomes of comparable cases are considered, independent legal opinions are obtained, and assumptions are made about the probability and frequency of potential claims crystallizing. Actual costs may differ from these estimates. When discounting long-term provisions to present value, assumptions are made with regard to the interest rate used.