UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 136
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2021 (continued)
1
Statement of Accounting Policies (continued)
Intangible Assets
(other than goodwill)
The estimated useful lives are as follows:
Intangible assets separately acquired
are capitalised at cost. Intangible assets
acquired as part of a business combination
are capitalised at fair value as at the date
of acquisition.
Customer relationships
2 - 6 years
Trademarks & Brands
2 - 12 years
Following initial recognition, intangible
assets, which have finite useful lives,
are carried at cost or initial fair value
less accumulated amortisation and
accumulated impairment losses.
The amortisation of intangible assets is
calculated to write off the book value of
intangible assets over their useful lives on
a straight-line basis on the assumption of
zero residual value. Amortisation charged
on these assets is recognised in the
Consolidated Income Statement.
The carrying amount of intangible assets
is reviewed for indicators of impairment
at each reporting date and is subject to
impairment testing when events or changes
of circumstances indicate that the carrying
values may not be recoverable.
Patents
Technological know how
and order backlogs
8 years
1 - 10 years
Amortisation methods, useful lives and
residual values are reviewed at each
reporting date and adjusted as necessary.
Foreign currency
Functional and presentation currency
The individual financial statements of
each Group company are measured
and presented in the currency of the
primary economic environment in which
the company operates, the functional
currency. The Group financial statements
are presented in Euro, which is the
Company’s functional currency.
Transactions and balances
Transactions in foreign currencies are
translated into the functional currency
at the exchange rates at the date of the
transaction. Monetary assets and liabilities
denominated in foreign currencies are
translated to the functional currency
at the exchange rates at the reporting
date. All currency translation differences
on monetary assets and liabilities are
taken to the Consolidated Income
Statement, except when deferred in equity
as qualifying net investment hedges,
which is recognised in the Statement of
Comprehensive Income.
Goodwill and fair value adjustments arising
on the acquisition of a foreign entity
are initially translated at the exchange
rate at the date of acquisition and then
subsequently these assets and liabilities are
treated as part of a foreign entity and are
translated at the closing rate.
Exchange rates of material currencies used
were as follows:
Average rate
Euro =
Pound Sterling
US Dollar
Canadian Dollar
Australian Dollar
Czech Koruna
Polish Zloty
Hungarian Forint
Brazilian Real
Foreign operations
The Income Statement, Statement
of Financial Position and Cash Flow
Statement of Group companies that have
a functional currency different from that of
the Company are translated as follows:
g Assets and liabilities at each reporting
date are translated at the closing rate
at that reporting date.
g Results and cash flows are translated
at actual exchange rates for the year,
or an average rate where this is a
reasonable approximation.
All resulting exchange differences
are recognised in the Consolidated
Statement of Comprehensive Income and
accumulated as a separate component of
equity, the Translation Reserve.
132 - 133
Closing rate
2021
2020
2021
2020
0.860
1.183
1.483
1.575
25.642
4.565
358.52
6.381
0.889
1.142
1.530
1.655
26.463
4.444
351.21
5.898
0.838
1.133
1.442
1.558
24.851
4.588
368.89
6.309
0.900
1.229
1.567
1.596
26.264
4.589
364.92
6.384
On disposal of a foreign operation, any
such cumulative retranslation differences,
previously recognised in equity, are
reclassified to the Consolidated Income
Statement as part of gain or loss
on disposal.
Inventories
Inventories are stated at the lower of
cost and net realisable value.
Cost is based on the first-in, first-out
principle and includes all expenditure
incurred in acquiring the inventories and
bringing them to their present location
and condition.
g Raw materials are valued at
the purchase price including
transport, handling costs and net
of trade discounts.
g Work in progress and finished goods
are carried at cost consisting of direct
materials, direct labour and directly
attributable production overheads
and other costs incurred in bringing
them to their existing location
and condition.
Net realisable value represents the
estimated selling price less costs to
completion and appropriate marketing,
selling and distribution costs.
A provision is made, where necessary,
in all inventory categories for obsolete,
slow-moving and defective items.
