The consumption of raw materials and other mate
rials is stated at replacement cost in the statement of
income.
The Depreciation based on replacement cost is ap
plied on a straight-line basis, in accordance with the
estimated life of each asset.
Taxation on profit is calculated on the profit ac
cording to the annual accounts. The tax on the dif
ference between this profit and the taxable profit is
offset against the provision for deferred tax liabili
ties.
Dividend from participations relates to the divi
dends received from non-consolidated interests.
Costs incurred for patents, licences, research and
development are charged directly to income.
