Page 101 - KELAG Annual Report 2019
P. 101

derivatives, which were previously netted under revenue, will not be adjusted retrospectively in
           the KELAG Group on account of immateriality. Retrospectively adjusting the accounting policy
           pursuant to IAS 8 would have resulted in the following corrections in the comparative period:




            Revenue                                                           -3.0
            Purchase of electricity and gas                                    3.0
            PROFIT FOR THE PERIOD                                              0.0






           Business combinations are accounted for by comparing the consideration paid (plus any non-
           controlling  interest)  with  the  fair  value  of  the  net  assets  acquired  to  determine  a  potential
           difference from the business combination.

           If  the  difference  is  negative,  the  calculation  of  consideration  paid  and  the  purchase  price
           allocation must be reassessed. If the difference is still negative after the reassessment, this is
           recognised in the income statement.


           Any  positive  difference  is  recognised  as  goodwill.  The  goodwill  is  allocated  to  those  cash-
           generating units (CGU) that are expected to benefit from the synergies resulting from a business
           combination. These cash-generating units correspond to the lowest level at which management
           monitors the goodwill for internal management purposes.

           In accordance with IAS 38, acquired intangible assets are measured at cost and any impairment
           losses less straight-line amortisation, provided that they do not have an indefinite useful life. The
           useful life of water usage rights and other rights in connection with installations is measured using
           the  useful  life  of  the  installations  or  based  on  contractual  agreements.  In  the  KELAG  Group,
           software is always amortised over a period of four or five years. If a longer useful life is assumed,
           it is amortised over ten years.

           As long as intangible assets are not yet available for use, they must be tested for impairment
           annually.

           Property, plant and equipment is recognised at cost (including restoration and decommissioning
           costs to be capitalised), less accumulated depreciation and/or accumulated impairment losses.

           The cost of self-constructed assets includes direct labour and materials costs and an appropriate
           portion of overheads.
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