Accounting and valuation principles

3) Accounting and valuation principles

The accounting and valuation principles used in these interim consolidated financial statements correspond to the methods applied in the consolidated annual financial statements as at 31 December 2011. There are no new standards and interpretations which need to be applied in the current reporting period and have a material impact on the interim financial statements.

Foreign currencies were converted at the exchange rate of EUR/CHF 1.203 on the balance sheet date and at an average rate of EUR/CHF 1.205. Positions in other currencies are insignificant and were converted using the rates published by the European Central Bank (ECB Fixings). The unrealised exchange rate gains and losses on intragroup transactions are recognised in the consolidated cash flow statement under other income and expenses not affecting cash.

Impairment/reversal of impairment on assets

In the first half of 2012 an impairment on assets of CHF 1 million was recognised. Due to a ruling by the Administrative Court in the first half of 2012, additional parts of assets in Poschiavo had to be assigned to Grid Level 1, as a consequence of which these will also be transferred to Swissgrid AG at the end of 2012. The carrying amount of these assets is CHF 16.9 million. The planned disposal is an impairment indicator. The carrying amount was compared against the expected transaction value for these assets, as a result of which an impairment loss of CHF 1 million was recognised in the consolidated statement of comprehensive income under depreciation/amortisation and impairment. These assets are now part of the disposal group which was measured in connection with the valuation of assets and liabilities held for sale under IFRS 5. No impairment reversals were recognised.

In the prior-year period intangible assets, in particular goodwill and the customer list, of Repower Furnizare România S.R.L totalling TCHF 27,424 were subject to full impairment. Parallel to the impairment, lower expectations resulted in a reduction in the residual purchase obligation resulting from the acquisition of Repower Furnizare. The reduction in the liability resulted in the addition of TCHF 13,054 to other operating income.


Repower suffered two offences involving property in 2011. There is no connection between the two cases. The loss in Italy of CHF 1 million was already accounted for in the 2011 interim financial statements under other operating expenses. The effect on income after tax of the financial offence in Switzerland, which relates to the first half of 2011, amounts to TCHF 976. For reasons of materiality, the prior-year figures were not adjusted.