Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Software AG GB 2013. englisch

Deferred taxes Deferred tax assets and liabilities are recognized for tem- porary differences between the carrying amounts in the tax accounts (tax base) and the carrying amounts in the Con- solidated Balance Sheet. Deferred tax assets also include claims for tax reductions resulting from the anticipated use of tax loss carryforwards in subsequent years, the realization of which is deemed probable. Deferred taxes are calculated on the basis of tax rates ­anticipated to apply in the relevant countries in accordance with the legal situation prevailing at the time of realization (reversal of tax deferrals). Deferred tax assets and liabilities are not discounted. The carrying amounts of the recognized assets and liabilities are regularly examined and adjusted if necessary. Non-derivative financial liabilities Software AG initially recognizes issued promissory note loans and subordinate loans as of the date they were ­incurred. All other financial liabilities are recognized as of the value date. Financial liabilities are derecognized when the contractual obligation has been settled, cancelled or has expired. Non-derivative financial liabilities are measured at fair value less directly attributable transaction costs on first recognition. Subsequently, they are measured at amortized cost using the effective interest rate. Provisions Provisions are reported when the Company has a current legal or constructive obligation towards a third party due to a past event that is likely to result in a future outflow of resources and for which the amount of the obligation can be reliably estimated. Estimates are regularly reviewed and adjusted. If the effect of discounting is significant, the provision is recognized in the amount of the present value of the ­expected future cash flows. Provisions for pensions and similar obligations The pension provisions are calculated using actuarial prin­ ciples in accordance with the projected unit credit method charges arising once the asset has been put into operation, is recognized as an expense in the period in which it is ­incurred. Subsequent expenditures relating to an item of property, plant and equipment are only added to the carry- ing amount of the asset if the expenditure improves the condition of the asset beyond its originally assessed stan- dard of performance. Items of property, plant and equipment are generally ­depreciated using the straight-line method in accordance with their useful economic lives: The terms of useful economic life and methods of depreci- ation are reviewed on a regular basis to ensure that they are in accordance with the expected pattern of economic benefits of the asset in question. Assets under construction are recognized at cost. Depreci­ ation on these items begins only after they have been put into operation. Impairment of intangible assets and property, plant and equipment As soon as there is any indication that an intangible asset or an item of property, plant and equipment might be ­impaired, an impairment test is carried out and, if an ­impairment loss is ascertained, the carrying amount of the asset is written down to its recoverable amount. The ­recoverable amount is the higher of the asset’s fair value less costs to sell and its value in use. The value in use is the present value of estimated future cash flows expected to arise from the continued use of the asset and from its ­disposal at the end of its useful life. Impairment losses are reported under costs of the relevant functional area or under “other expenses.” years Buildings 40-50 Improvements to buildings/leasehold 8-10 Operating and office equipment 3-13 Computer hardware and accessories 1-7 Software AG | Annual Report 2013 146 Letter from the Management Board About Software AG Software AG ShareHighlights 2013

Overview