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Accounting Principles

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					Manual/Procedure                       Accounting Principles
1. GENERAL..............................................................................................3
2. BASIC PRINCIPLES OF US GAAP ………………................................4
3. BALANCE SHEET .................................................................................5
3.1 Non current assets (fixed assets) ........................................................................... 5
3.1.1 Property, plant and equipment (standard tools, - test and other equipment).................... 6
3.1.2 Intangible assets and goodwill ......................................................................................... 7
3.1.3 Financial assets ............................................................................................................... 7

3.2 Current Assets ........................................................................................................ 8
3.2.1 Capitalization of industrialization and system integration costs ....................................... 8
3.2.1.1 Capitalization of industrialization costs.......................................................................... 8
3.2.1.2 Capitalization of system integration costs …………...................................................... 9
3.2.2 Capitalization of costs for prototype tooling.................................................................... 10
3.2.3 Capitalization of costs for production tools and equipment............................................. 11
3.2.4 Regular materials (stock)................................................................................................ 12
3.2.5 Obsolete material ..................................................................................................... ...... 13
3.2.5.1 Instruction for handling of obsolete materials............................................................... 14
3.2.6 Scrap .............................................................................................................................. 14

3.3 Trade Receivables ................................................................................................ 16
3.3.1 Intercompany accounts .................................................................................................. 17
3.3.2 Evaluation of trade receivables ...................................................................................... 17
3.3.3 Write off of trade receivables........................................................................................... 17

3.4 Payables and other liabilities ................................................................................ 18
3.4.1 Intercompany accounts .................................................................................................. 18

3.5 Other receivables .................................................................................................. 19

3.6 Provisions .............................................................................................................. 19
3.6.1 Expected future losses ……………………………………………....………....................... 19
3.6.2 Warranties ............................................................................................................ .......... 19
3.6.3 Penalties ......................................................................................................................... 20

4. CURRENCY CONVERSION ................................................................21

4.1 CURRENCY CONVERSION FOR GROUP FINANCIAL STATEMENTS ..............21
4.2 Currency exchange for single companies ............................................................ 21

5.FACTORING...........................................................................................23

6.DOCUMENTS LINKED WITH THIS STANDARD ..................................24

7.ABBREVIATIONS ..................................................................................24
 Manual/Procedure          Accounting Principles
8.CONTACT PERSON ..............................................................................24




Prepared by:          Date:
Approved by:          Date:
Released by:          Date:




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  Manual/Procedure           Accounting Principles
1. General
The CO. Accounting Principles (AP) are applicable to all consolidated entities within the CO. Group.

The AP are devised to ensure the uniform preparation of commercial financial statements (annual
financial statements HB I and the revaluation and conversion into group standard HB II) of the individual
companies within the CO. consolidation group. The principles are based on German GAAP (HGB) and
are to be used in connection with the General Chart of Accounts and other implemented regulations
(CES, corporat
				
DOCUMENT INFO
Description: Instructions on how to apply the basic accounting principles in a Global Company, it is also a guide to know how to manage the accounting in general in the company
This document is also part of a package Bookkeeping Forms for your Business 49 Documents Included