What significant changes did the transition to IFRSs produce in the KSB Group’s consolidated financial statements?
There are certain fundamental recognition and measurement differences between the IFRSs and German accounting principles. As far as our financial statements are concerned, these include: Under IFRSs, fixed assets are usually measured after deducting straight-line depreciation and amortization, and the economic useful lives are longer than under the HGB. Tax-motivated accelerated depreciation or transfers from the special reserve with equity portion are prohibited by the IFRSs. In addition, leased assets are capitalized at the lessee where beneficial ownership is transferred. Certain contracts are evaluated using the percentage of completion method, under which revenue is recognized by reference to the stage of completion. This means that revenue is recognized proportionately prior to completion and billing of the project. Foreign currency receivables, cash and cash equivalents, and liabilities, as well as current financial instruments, are translated at the closing rates. This may resu
