(19) Other Accruals

 

 

 

 

 

 

 

 

€k

 

Oct. 1, 2010

Currency variances/misc.

Draw-downs

Releases

Additions

Accumulation

Sept. 30, 2011

Non-current other accruals

 

 

 

 

 

 

 

Personnel expenses

36,462

–3

–4,485

–2,831

4,440

1,222

34,805

Environmental protection obligations

9,821

–4

–23

0

864

54

10,712

Warranties

0

0

0

0

1,036

0

1,036

Total non-current other accruals

46,283

–7

–4,508

–2,831

6,340

1,276

46,553

Current other accruals

 

 

 

 

 

 

 

Current accruals associated with sales and procurement markets

 

 

 

 

 

 

 

Warranties

52,988

748

–38,811

–4,801

25,948

0

36,072

Onerous contracts

9,854

60

–6,155

–1,011

7,758

19

10,525

Delay and contract penalties

4,291

97

–699

–1,814

2,043

0

3,918

Miscellaneous

12,259

76

–2,455

–788

3,332

0

12,424

Total current accruals associated with sales and procurement markets

79,392

981

–48,120

–8,414

39,081

19

62,939

Accruals for personnel expenses

44,513

124

–25,253

–2,466

25,763

0

42,681

Accruals for other taxes

48

2

–22

0

5

0

33

Other miscellaneous accruals

22,221

–48

–9,202

–5,013

8,933

0

16,891

Total current other accruals

146,174

1,059

–82,597

–15,893

73,782

19

122,544

Total other accruals

192,457

1,052

–87,105

–18,724

80,122

1,295

169,097

In accordance with IAS 37, accruals are created on the balance sheet in respect of legal or actual obligations to third parties resulting from past events where the outflow of funds to settle such obligations is probable and can be estimated reliably.

The accruals for personnel expenses have been created essentially for deferred compensation, pre-retirement part-time working arrangements, vacation and flexitime not taken, service anniversary awards as well as severance payments. As a means of entering into early retirement, several domestic legal entities offer a company-subsidized pre-retirement part-time working scheme using the “block model.” The term of the scheme is between two and six years, and entry to the scheme is permitted no earlier than the employee’s 55th birthday. Essentially, during the working phase, the employee performs full duties on half pay. During the release phase, the employee no longer works, but receives the remaining 50% of his or her remuneration. The employer subsidy takes the form of topping up of remuneration and contributions to social pension insurance. The insolvency protection has been handled by a guarantee agreement closed with a bank.

Warranty accruals are created in respect of product warranty obligations, which are prescribed by statute or contractually agreed, or which have arisen de facto. The decrease in expected future expenses essentially results from the technical maturity associated with products delivered over the course of the fiscal year and less business with high-end systems.

Where income from an order does not cover prime cost, accruals are created for onerous contracts to the value of the variance between income and expenses.

Where delay and contract penalties are agreed in contracts for the supply of goods and/or services, and where the incurrence of penalties is probable in the light of the current position, a corresponding accrual for delay and contract penalties is created.

Other miscellaneous accruals contain obligations associated with pending legal proceedings and accruals for costs associated with year-end closing.

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