With the exception of inventories (see for further information
“Reworkable Service Parts and Current Inventories”), deferred tax assets (see
“Taxes”) as well as financial assets (see “Financial Instruments”), the book values of assets held by the Wincor Nixdorf Group are checked on the balance sheet date for indicators favoring impairment. Where such indicators exist, the settlement value of the assets (recoverable amount) is estimated and devaluation is made with a corresponding charge to the Group income statement.

According to IAS 36, goodwill is tested for impairment annually, or if an indication for impairment exists, by the execution of an impairment test. In doing so, the book value of a cash generating unit is compared with the recoverable amount. The recoverable amount of a cash generating unit is the greater of the two figures fair value less costs to sell and value in use. If the recoverable amount of a cash generating unit is lower than its book value, a goodwill impairment loss is recorded in the amount of the difference. In the case of Wincor Nixdorf, the recoverable amount equals the value in use, which is determined by the discounted cash flow method. The basis for the determination of future cash flows are data from the detailed Group planning for the periods until 2010/2011, with subsequent transition to perpetuity. The assumptive continual growth of 1 to 2% for perpetuity complies with the general expectation of the business development. The present value of cash flows is calculated by discounting the free cash flows, with an interest rate before taxes between 7 and 11% resembling the referring rate of return of the business units. As of September 30, 2008, no impairment is necessary.

The Retail (Glossary)  and Banking (Glossary)  business carved out of the Siemens Group as of October 1, 1999, is separated in three cash generating units according to regional segmentation. The relevant goodwill is fully assigned to the cash generating unit “Carve-out Europe.” All of the following acquisitions are treated individually as independent business units (cash generating units) according to IFRS 3/IAS 36. The book values of material goodwill allocated to cash generating units “Carve-out Europe” and “France” amount to €291,680k (2006/2007: €292,044k) and €22,317k (2006/2007: €22,331k), respectively.