ANNUAL REPORT 2017 Director-General's Statement
ANNUAL REPORT 2017 LFV is with you on the travel
ANNUAL REPORT 2017 This is LFV
ANNUAL REPORT 2017 The Year in Brief
ANNUAL REPORT 2017 Operating Environment and Marke
t
ANNUAL REPORT 2017 Strategy and Objectives
ANNUAL REPORT 2017 Customer Focus
ANNUAL REPORT 2017 Environment
ANNUAL REPORT 2017 Aviation Safety
ANNUAL REPORT 2017 Innovation
ANNUAL REPORT 2017 Cooperation and Partnerships
ANNUAL REPORT 2017 Employees
ANNUAL REPORT 2017 Board of Director's Report
ANNUAL REPORT 2017 Income Statement, Comments on t
he Income Statement
ANNUAL REPORT 2017 Balance Sheet
ANNUAL REPORT 2017 Comments on the balance sheet a
nd funds statements
ANNUAL REPORT 2017 Financing
ANNUAL REPORT 2017 Accounting and Valuation Princi
ples
ACCOUNTING AND VALUATION PRINCIPLES VIGNETTE ture
. In cases where the outcome of a work in progress cannot be calculated with reasonable certainty, revenue is reported only to the extent equivalent to the expenditure incurred on the work in progress that will probably be reimbursed by the purchaser. Known or anticipated losses are expensed immediately. For a work in progress in an open account, the income that is attributable to a work in progress is reported as revenue at the rate the work is conducted and/or the material is supplied or used. General valuation principles Unless otherwise stated below, assets, liabilities, and provisions have been valued at their acquisition value. Fixed assets Tangible fixed assets Tangible fixed assets have been valued at their acquisition value with deductions for planned depreciation. Costs for work performed by the company for its own use in production of fixed asses are added to the acquisition value from 1 January 2017. Where appropriate, write-downs are performed in the manner indicated below. Planned depreciation is calculated by allocating acquisition value to periods in a linear fashion over the course of the assessed useful life. Depreciation begins when an asset is ready to be used for its intended purpose. When an asset includes significant components with different useful lives, the rules regarding what is known as component depreciation are applied. The depreciation periods are continuously reassessed. Current investment projects regarding tangible fixed assets are reported under the heading Fixed assets under construction. For the comparison year, parts of the item include assets of an intangible nature, which have been reclassified and accounted as intangible assets for the year. LFV ANNUAL REPORT 2017 Intangible fixed assets LFV applies ESV’s regulations and general advice concerning reporting of expenditure on research and development. Expenditure on development which is of significant value to the business in future years shall be admitted as an intangible fixed asset if all the conditions specified in the regulations exist. Intangible assets, reported by LFV, include expenses for purchased licenses and other software whose useful life is greater than three years, as well as externally acquired materials and services for the development and production of intangible assets when they generally meet the criteria to be recognised as an asset. Expenditures for work performed by the company for its own use as regards devolpment and production of fixed assets is entered with the acquistion cost from 1 January 2017, when the criteria for capitalisation in all other respects are met. Expenditure on research may not in any case be set up as an asset. Linear depreciation takes place according to a plan over the course of the asset’s useful life. The useful life of intangible fixed assets amounts to more than five years in cases where it can be determined with reasonable certainty that the useful life is longer, which is mainly the case for operational air traffic management systems. Planned depreciation Installations in the field Buildings Electrical installations 15–30 years 15–30 years 5–20 years Telecommunication equipment 5–15 years Vehicles, machinery and equipment Intangible assets Leased assets 3–15 years 3–12 years 3–5 years When there are indications that the value of an asset has decreased, the potential need for a write-down is tested by applying ESV’s general advice, Chapter 5, Section 5, Write-downs. Leasing Leasing is classified as either financial or operational leasing. Classification is performed by applying the ESV’s general advice concerning financial leasing. Agreements classified as financial leasing, mainly vehicles, are recognised as assets at nominal cost value with deductions for planned depreciation, and obligations to pay future leasing fees are recognised as liabilities. Expenditure on operational lease agreements are expensed in a linear fashion over the lease period. Stock Stock is valued according to the principle of lowest value at the lower of the acquisition value and the net sales value. Financial instruments Financial instruments that are held primarily to generate yield or appreciation are valued at actual value, unless otherwise indicated below. The actual value is determined on the basis of the instrument’s market value. The change in value since the previous balance sheet date is recognised in the income statement. Financial instruments, that are not held to generate yield or appreciation, are valued at amortised cost using the effective interest method, except for shares in wholly and partly owned companies, financial guarantee contracts, and leasing agreements. The following financial instruments shall not be valued at actual value: 1. financial instruments held to maturity; 2. loans receivable and other receivables arising from the business, which are not held for trading purposes, 3. shares and participations in wholly or partly owned companies, and 4. liabilities, except for liabilities included as part of a trading portfolio. Financial instruments held to maturity are financial assets and financial liabilities that 47
ANNUAL REPORT 2017 Notes
ANNUAL REPORT 2017 Investments
ANNUAL REPORT 2017 Reporting in Accordance with Pe
rformance Plan
ANNUAL REPORT 2017 Reporting in Accordance with Ap
propriation Directions
ANNUAL REPORT 2017 Risk Management
ANNUAL REPORT 2017 Dividend Proposal
ANNUAL REPORT 2017 Audit Report
ANNUAL REPORT 2017 Board of Directors
ANNUAL REPORT 2017 Group Management
ANNUAL REPORT 2017 Five Years at a Glance
ANNUAL REPORT 2017 Abbreviations and Explanations