Content

4.11 cash and cash equivalents
4.12 financial instruments
4.13 receivables
4.14 trade accounts receivable
4.15 construction contracts
4.16 inventories
4.17 financial assets
4.18 non-current assets held for sale
4.19 tangible assets in 2009
4.20 intangible assets in 2009
4.21 further details on tangible assets
4.22 investment property
4.23 investments
4.24 trade payables
4.25 financial liabilities
4.26 other current liabilities
4.27 provisions
4.28 retirement benefit obligations
4.29 deferred income tax
4.30 share capital
4.31 retained earnings

4.11 cash and cash equivalents
in CHF '000 at 31 December
20092008
Cash at bank and in hand
26,84434,867
Short-term bank deposits
92–
Total cash and cash equivalents
26,93634,867

The actual interest rate for bank balances and for short-term bank deposits ranged between 0.125% and 3.58% (2008: 0.125% and 6.71%). Bank deposits have an average maturity period of 60 days.

For the purpose of the cash flow statement, the fund “cash and cash equivalents” encompassed liquid assets. Current account credits were not part of the fund “cash and cash equivalents”.

4.12 financial instruments

Financial assets and financial liabilities can be allocated to the following categories:

financial assets
in CHF '000 at 31 December
20092008
Held for trade
Marketable securities
1315
Derivative financial instruments
74986
Total held for trade
871,001
Loans and receivables
Trade accounts receivable
30,17532,501
Financial assets
16,74418,610
Other non-current assets
979902
Total loans and receivables
47,89852,013
Held to maturity
N/A
––
Total held to maturity
––
Available for sale
Investments (refer to note 4.23)
2,1102,497
Total available for sale
2,1102,497
Total financial assets
50,09555,511

financial liabilities
in CHF '000 at 31 December
20092008
At amortised costs
Trade payables
30,71131,606
Financial payables
13,9769,434
Other current payables
7,6258,841
Total at amortised costs
52,31249,881
At fair value through profit and loss
Derivative financial instruments
296596
Total at fair value through profit and loss
296596
Total financial liabilities
52,60850,477

The contractual undiscounted cash flow of financial liabilities is as follows:

contractual undiscounted cash flow of financial liabilities
in CHF '000 at 31 December
Liabilities from
borrowings,
trade payables
and other cur-
rent liabilities


Liabilities from
finance lease


Total
2009		Liabilities from
borrowings,
trade payables
and other cur-
rent liabilities


Liabilities from
finance lease


Total
2008
From current financial liabilities
Due within 6 months
49,04116049,20146,38818546,573
Due between 6 and 12 months
146173319156199355
Total from current financial liabilities
49,18733349,52046,54438446,928
From non-current financial liabilities
Due between 1 and 2 years
271361632216429645
Due between 2 and 5 years
631,1921,255–1,3341,334
Due later than 5 years
6251,1521,7776451,5852,230
Total from non-current financial liabilities
9592,7053,6648613,3484,209
Total contractual undiscounted cash flow of financial liabilities
 50,146 3,038 53,184 47,405 3,732 51,137

The fair value of marketable securities, derivative financial instruments and financial instruments available for sale is determined based on a three-level hierarchy as disclosed in paragraph 2.17 of the accounting principles. For each level different calculation methods are used to estimate the fair value of the recorded financial instruments.

fair value of financial assets
in CHF '000 at 31 December

Level 1
Level 2
Level 3		Total
2009
Level 1
Level 2
Level 3		Total
2008
Held for trade
Marketable securities
13––1315––15
Currency option contracts
––––277–277
Forward foreign exchange rate
–74–74709–709
Total held for trade
1374–8715986–1,001
Available for sale
Investments
––2,1102,110––2,4972,497
Total available for sale
––2,1102,110––2,4972,497

fair value of financial liabilities
in CHF '000 at 31 December

Level 1
Level 2
Level 3		Total
2009
Level 1
Level 2
Level 3		Total
2008
Held for trade
Currency option contracts
––––––––
Forward foreign exchange rate
–296–296–596–596
Total held for trade
–296–296–596–596

The Group has included a participation in the retailer cooperation Schweizer Buchzentrum as financial instruments on level 3. According to IAS 39 such participation needs to be stated as financial instrument “available for sale”. As no direct or indirect observable market information is available to calculate the fair value the valuation is based on the purchase cost deducted by impairments, if any. The Orell Füssli Group considers the carrying amount of the investment of CHF 2,110,000 (2008: CHF 2,497,000) as corresponding to its approximate fair value. It is not planned to sell the position in the near future.

As per 31 December 2009 and 31 December 2008, several option contracts are stated in the tables above as financial instruments held for trade. All of them expire within the coming twelve months and are linked to transactions which fall due with high probability during the year 2010. As the Group forgoes hedge accounting, any gain or loss of valuation will be directly included in the financial result and, on maturity, adjusted by the effective realised gain or loss through the same accounts. The calculation of the fair value as per balance sheet date is based on observable market information (level 2).

The contract values as disclosed in the following table do not represent the market risks; they solely provide indications on the upcoming transaction volume on the balance sheet date. The fair value at 31 December is based on market values or based on calculations supported by standardised option-pricing models using market prices.

contract value of derivative financial instruments
in CHF '000 at 31 December
20092008
Currency option contracts
Currency option contracts in SGD
–4,326
Total currency option contracts
–4,326
Forward foreign exchange rate
Forward foreign exchange rate contracts in SGD
18,9649,954
Forward foreign exchange rate contracts in EUR
–12,063
Forward foreign exchange rate contracts in other currencies
3,356308
Total foreign exchange rate contracts
22,32022,325
Total contract value of derivative financial instruments
22,32026,651

4.13 receivables
in CHF '000 at 31 December
20092008
Trade accounts receivable gross
32,00035,470
Provisions for doubtful trade accounts receivable
–1,825–2,969
Total trade accounts receivable net
30,17532,501
Prepayments to suppliers
5462,172
Receivables from related parties
2,8581,278
Accrued income and deferred expenses
5,0771,888
Other receivables
4,1453,853
Total other receivables
12,6269,191
Total receivables
42,80141,692

The carrying amounts of the accounts receivable comply with their fair values.

4.14 trade accounts receivable

Taking into account the terms and conditions established with customers, the following table sets forth details of the age of trade accounts receivable:

aging structure of trade accounts receivable
in CHF '000 at 31 December
20092008
Not overdue
16,21923,124
Past due not more than 30 days
8,6475,738
Past due from 31 to 60 days
2,5151,259
Past due from 61 to 90 days
592641
Past due from 91 to 180 days
1,0582,541
Past due more than 180 days
2,9692,167
Total trade accounts receivable gross
32,00035,470
Provisions for doubtful trade accounts receivable
–1,825–2,969
Total trade accounts receivable net
30,17532,501

Provisions for doubtful trade accounts receivable are based not only on decisions by individual judgment taking into account the different customer structure in each division, but also on updated information about past experience. The loss was included in the income statement as “other operating expenses”.

provision for doubtful trade accounts receivable
in CHF '000
20092008
At 1 January
–2,969–2,876
Increase in provisions for doubtful trade accounts receivable
–1,687–1,775
Utilisation of provisions
1,6821,270
Reversal of provisions
1,164116
Translation effects
–15296
At 31 December
–1,825–2,969

Part of provisions for doubtful trade accounts receivable are individual allowances in an amount of CHF 896,000 (2008: CHF 2,226,000). The effective loss on accounts receivable within the past five years has always been less than 0.5% of the annual turnover.

Trade accounts receivable include amounts denominated in the following currencies:

trade accounts receivable by currencies
in CHF '000 at 31 December
20092008
CHF
12,50315,924
EUR
15,22514,813
USD
1,8421,168
GBP
541596
Other
64–
Total trade accounts receivable net
30,17532,501

In the 2009 financial year, certain European subsidiaries of the Group forfeited receivables in an amount of CHF 1,752,000 (2008: CHF 3,029,000).

4.15 construction contracts

Revenue from construction contracts by using the PoC-method during the year ended 31 December 2009 was CHF 17,315,000 (2008: CHF 29,464,000). The aggregate amount of costs incurred and the recognised profits (less recognised losses) for all construction contracts in progress was as disclosed on the balance sheet date.

4.16 inventories
in CHF '000 at 31 December
20092008
Raw materials, auxiliary materials and supplies
19,21219,519
Semi-finished and finished goods
17,74214,408
Trading goods
7,95211,009
Work-in-progress
7,0087,660
Total inventories
51,91452,596

The cost of inventories recognised as expense and included in the income statement amounted to CHF 135,204,000 (2008: CHF 150,476,000). The write-down on inventories recognised in the income statement during the financial year ended at 31 December 2009, was CHF –95,000 (2008: CHF 523,000).

4.17 financial assets

Current and non-current financial assets consist of receivables from finance lease and finance contracts as well as from loan contracts. The financial assets comprise:

financial assets
in CHF '000 at 31 December
Current
financial assets		Non-current
financial assets		Total 2009
financial assets		Current
financial assets		Non-current
financial assets		Total 2008
financial assets
Financial assets
Loan assets
4,34212,08316,4254,02212,40316,425
Lease and finance contracts
174124298291656947
Other current financial assets
21–211,238–1,238
Total financial assets
4,53712,20716,7445,55113,05918,610

Certain foreign subsidiaries enter finance lease contracts with their clients in connection with special production facilities. The following details can be disclosed with regard to finance lease assets:

finance lease assets
in CHF '000 at 31 December

Gross
investments in
finance lease		Present value
of future
minimum
lease payments
Unrealised
interest income
2009
Gross
investments in
finance lease		Present value
of future
minimum
lease payments
Unrealised
interest income
2008
Current finance lease assets
Due within 6 months
110101916114615
Due between 6 and 12 months
7973616014515
Total current finance lease assets
1891741532129130
Non-current finance lease assets
Due between 1 and 2 years
1341241033230725
Due between 2 and 5 years
–––37734928
Due later than 5 years
––––––
Total non-current finance lease assets
1341241070965653
Total finance lease assets
323298251,03094783

No contingent finance lease assets relating to production output are recorded and no provision on finance lease assets was made.

4.18 non-current assets held for sale

In the 2009 financial year, the Orell Füssli Group sold a property in St. Gall that was no longer in operational use. The asset was classified as tangible, as management decided on the disposal after the half-year financial report 2009 was issued. Therefore, no prior reclassification to non-current assets held for sale was recorded. At 31 December 2009 and 2008, there are no non-current assets held for sale by the Group.

4.19 tangible assets in 2009
in CHF '000

Land
and buildings		Machinery
and technical
installations
Other
tangible assets
Assets under
construction
Total
2009
Cost at 1 January
108,531104,23138,50917,220268,491
Change in scope of consolidation
–––––
Additions1
2,0964,3551,6175,34113,409
Disposals
–15,055–1,171–2,125–2–18,353
Reclassification
7,2336,7987,294–21,431–106
Exchange differences
–3178–4548
Cost at 31 December
102,774114,29145,2911,133263,489
Accumulated depreciation and impairment at 1 January
–68,474–65,122–23,992––157,588
Change in scope of consolidation
–––––
Depreciation on disposals
12,5591,1701,829215,560
Depreciation
–2,852–2,241–4,727––9,820
Impairment
–271––483––754
Reclassification
–––––
Exchange differences
19–8312––52
Accumulated depreciation and impairment at 31 December
–59,019–66,276–27,3612–152,654
Net book value at 31 December
43,75548,01517,9301,135110,835
Insured value at 31 December
295,867
Net book value of tangible assets under finance lease
3,656637–3,726
Committments for purchases of property, plant and other equipment
275

tangible assets in 2008
in CHF '000

Land
and buildings		Machinery
and technical
installations
Other
tangible assets
Assets under
construction
Total
2008
Cost at 1 January
112,02888,12437,1772,075239,404
Change in scope of consolidation
––6–1,595––1,601
Additions1
19326,2832,86020,25249,588
Disposals
–1,747–8,954–2,659––13,360
Reclassification
349–4,514–5,068–205
Exchange differences
–2,292–1,216–1,788–39–5,335
Cost at 31 December
108,531104,23138,50917,220268,491
Accumulated depreciation and impairment at 1 January
–67,274–70,813–24,368––162,455
Change in scope of consolidation
–61,094–1,100
Depreciation on disposals
1,7268,8892,530–13,145
Depreciation
–3,922–4,275–4,242––12,439
Impairment
–38–11–279––328
Reclassification
–––––
Exchange differences
1,0341,0821,273–3,389
Accumulated depreciation and impairment at 31 December
–68,474–65,122–23,992––157,588
Net book value at 31 December
40,05739,10914,51717,220110,903
Insured value at 31 December
255,979
Net book value of tangible assets under finance lease
3,72961––3,790
Committments for purchases of property, plant and other equipment
10,317
1 Additions include additions by cash purchase, by capitalised costs and by acquisitions.

4.20 intangible assets in 2009
in CHF '000
Software and
developments		Rights and
licenses		Other in-
tangible assets		Total
2009
Cost at 1 January
5,4621,6908508,002
Change in scope of consolidation
––––
Additions1
152125–277
Disposals
–86–––86
Reclassification
106––106
Exchange differences
–3–––3
Cost at 31 December
5,6311,8158508,296
Accumulated depreciation and impairment at 1 January
–3,223–1,667–844–5,734
Change in scope of consolidation
––––
Depreciation on disposals
86––86
Depreciation
–631–38–2–671
Reclassification
––––
Exchange differences
6–17
Accumulated depreciation and impairment at 31 December
–3,762–1,705–845–6,312
Net book value at 31 December
1,86911051,984

intangible assets in 2008
in CHF '000
Software and
developments		Rights and
licenses		Other in-
tangible assets		Total
2008
Cost at 1 January
8,1561,76193910,856
Change in scope of consolidation
–2,968–13––2,981
Additions1
545318584
Disposals
–132–88––220
Reclassification
205––205
Exchange differences
–344–1–97–442
Cost at 31 December
5,4621,6908508,002
Accumulated depreciation and impairment at 1 January
–4,740–1,761–939–7,440
Change in scope of consolidation
2,24213–2,255
Depreciation on disposals
12788–215
Depreciation
–1,039–7–2–1,048
Reclassification
––––
Exchange differences
187–97284
Accumulated depreciation and impairment at 31 December
–3,223–1,667–844–5,734
Net book value at 31 December
2,2392362,268
1 Additions include additions by cash purchase, by capitalised costs and by acquisitions.

4.21 further details on tangible assets

The workings and installations in the building of the Orell Füssli Group’s head office could be finalised as planned in the 2009 financial year. The expenditures included investments in production facilities and machineries for the security printing division.

Bank borrowings are secured on land and buildings for the value of CHF 577,000 (2008: CHF 0).

Lease rentals amounting to CHF 11,024,000 (2008: CHF 8,370,000), while CHF 846,000 (2008: CHF 868,000) are related to other leased tangible assets. Operating lease expenses are included in the income statement.

4.22 investment property
in CHF '000
20092008
Cost at 1 January
466466
Exchange differences
–117–144
Cost at 31 December
349322
Accumulated depreciation and impairment at 1 January
–232–319
Depreciation
–18–21
Exchange differences
–19108
Accumulated depreciation and impairment at 31 December
–269–232
Net book value at 31 December
8090
Fair value of investment property at 31 December
285280
Amounts recognised in the income statement
Rental income
7993
Direct operating expenses arising from investment property generating rental income
–14–13
Direct operating expenses arising from investment property not generating rental income
–14–13

The fair values of investment property are based on the appraisal by an independent valuer. The appraisal is also based on the market value.

There is no commitment or obligation on repairs and maintenance of the investment property.

4.23 investments
in CHF '000 at 31 December
20092008
Investments in associated companies
305305
Participation in cooperatives
2,1102,497
Other investments
6464
Total investments
2,4792,866

At 31 December 2009 and 2008, investments encompass the participation in Orell Füssli Kartographie Ltd. of 24% and in Travel Book Shop Ltd. of 35%. The investment is accounted for an investment in associates in the consolidated financial statements. At balance sheet date the carrying amount was CHF 270,000 (2008: CHF 270,000) for Orell Füssli Kartographie Ltd. and CHF 35,000 (2008: CHF 35,000) for Travel Book Shop Ltd. The investments do not include any goodwill either at 31 December 2009 or at 31 December 2008. Neither is a listed company.

According to IAS 39, the participation in the retailer cooperative Schweizer Buchzentrum needs to be classified as a financial instrument “available-for-sale” (refer to note 4.12).

4.24 trade payables

The trade accounts payable can be allocated to the following currencies at their net book values:

trade payables by currencies
in CHF '000 at 31 December
Trade payables
third parties		Trade payables
related parties		Total
2009		Trade payables
third parties		Trade payables
related parties		Total
2008
CHF
21,6951321,70822,9572122,978
EUR
7,6259918,6167,3379028,239
USD
348–348258–258
GBP
39–3922–22
Other
–––109–109
Total trade payables
29,7071,00430,71130,68392331,606

4.25 financial liabilities

The carrying amount of financial liabilities corresponds approximately with its fair value. The maturities are as follows:

maturities of financial liabilities
in CHF '000 at 31 December
From
borrowings		Liabilities from
finance lease		Total
2009		From
borrowings		Liabilities from
finance lease		Total
2008
From current financial liabilities
Due within 6 months
10,40515710,5625,3451825,527
Due between 6 and 12 months
139167306150191341
Total current financial liabilities
10,54432410,8685,4953735,868
From non-current financial liabilities
Due between 1 and 2 years
246335581198396594
Due between 2 and 5 years
531,0251,078–1,1421,142
Due later than 5 years
6008491,4496141,2161,830
Total non-current financial liabilities
8992,2093,1088122,7543,566
Total financial liabilities
11,4432,53313,9766,3073,1279,434

Interest expenditure from finance lease liabilities was in an amount of CHF 227,000 (2008: 267,000).

No secured liabilities are included in the 2009 or 2008 financial liabilities. Finance lease liabilities are secured effectively as the rights to the lease asset revert to the lessor in the event of a breach of contract.

The carrying amounts of financial liabilities are denominated in the following currencies. The amounts are translated into Swiss Francs at the exchange rate of the balance sheet date.

financial liabilities by currencies
in CHF '000 at 31 December
From
borrowings		Liabilities from
finance lease		Total
2009		From
borrowings		Liabilities from
finance lease		Total
2008
CHF
6006266268762749
EUR
10,8432,47113,3145,6203,0658,685
Total financial liabilities
11,4432,53313,9766,3073,1279,434

effective interest rates on financial liabilities
Per cent
20092008
CHF
0.83–6.25%2.65–5.00%
EUR
1.42–7.75%4.30%

4.26 other current liabilities
in CHF '000 at 31 December
20092008
Accrued expenses and deferred income
7,5679,050
Derivative financial instruments (refer to note 4.12)
296596
Other current payables
7,6278,841
Total other current liabilities
15,49018,487

In connection with the derivative financial instruments reference is made to note 4.12. The Orell Füssli Group concluded several currency option contracts in order to hedge certain currency risks. Due to different maturities the contract values will be reduced continuously over the next twelve months.

4.27 provisions

Provisions are considered for restructuring, warranties, outstanding commissions and projects that need to be finished. Provisions for restructuring refer to obligations due to the social compensation plan of 1992. No provision was made for legal claims either in 2009 or 2008. The maturities of the stated provisions as per balance sheet date were as follows:

maturities of provisions
in CHF '000 at 31 December
Due within
12 months		Due between
1 and 5 years		Due later
than 5 years		Total
2009		Due within
12 months		Due between
1 and 5 years		Due later
than 5 years		Total
2008
Provisions for legal claims
––––––––
Provisions for restructuring
418–22520126
Warranty provisions
246––246447––447
Other provisions
204274122600130360110600
Total provisions
4542921228685823801111,073

The development of the stated provisions in the 2009 and 2008 financial year is stated below:

movement in provisions
in CHF '000
20092008
At 1 January
1,073683
Additions (charged to income statement)
251600
Reversals (charged to income statement)
–213–69
Utilisation during the year
–245–84
Exchange differences
2–57
At 31 December
8681,073

4.28 retirement benefit obligations

The pension plans of the Orell Füssli Group are related to retirement benefits for the employees. At 31 December 2009, the Group’s balance sheet includes pension fund assets of CHF 4,805,000 (2008: CHF 3,309,000) and pension fund liabilities of CHF 457,000 (2008: CHF 398,000). The calculation according to IAS 19 results in a net pension asset of CHF 4,348,000 (2008: CHF 2,911,000). The analysis of the pension fund liability and the amounts recognised in the income statement are as follows:

fair value of plan assets
in CHF '000
20092008
At 1 January
117,618133,274
Expected return on plan assets
4,4114,998
Employer’s contribution
3,0563,125
Employees’ contribution
2,8873,160
Curtailments, settlements, plan amendments
––10,420
Benefits paid
–5,171–4,278
Actuarial gain/(loss) on plan assets
–1,299–12,241
At 31 December
121,502117,618

present value of benefit obligations
in CHF '000
20092008
At 1 January
–119,105–130,273
Service costs
–5,539–6,104
Interest costs
–4,169–4,560
Curtailments, settlements, plan amendments
–13,067
Benefits paid
5,1714,278
Actuarial gain/(loss) on benefit obligations
–1,0904,487
At 31 December
–124,732–119,105

amount recognised in personnel expenses
in CHF '000
20092008
Service costs
–5,539–6,104
Interest costs
–4,169–4,560
Expected return on plan assets
4,4114,998
Curtailment gain
–1,845
Adjustment due to IAS 19.58
85186
Net periodic benefit cost
–4,446–3,735
Employees’ contribution
2,8873,160
Total amount recognised in personnel expenses
–1,559–575

The actual return on the plan assets was 10.4% (2008: –9.7%)

The movement in the pension fund liability is as follows:

movement in pension fund liability
in CHF '000
SwitzerlandAbroadTotal 2009SwitzerlandAbroadTotal 2008
At 1 January
4,174–1,2632,9111,624–1,443181
Total expense charged to income statement
–1,559–60–1,619–575180–395
Employer’s contribution
3,056–3,0563,125–3,125
At 31 December
5,671–1,3234,3484,174–1,2632,911

Over the past five years, the development of the overfunding/underfunding and the actuarial gain/loss was as follows:

overfunding/underfunding over five years
in CHF '000 at 31 December
20092008200720062005
Fair value of plan assets
121,502117,618133,274121,750118,461
Present value of pension obligations
–124,732–119,105–130,273–119,937–120,702
Overfunding/(underfunding)
–3,230–1,4873,0011,813–2,241
Limitation of assets according IAS 19.58
––850–1,260–1,360–2,336
Unrecognised actuarial (gains)/losses
8,9016,511–1175424,263
Asset/(liability) in the balance sheet – net
5,6714,1741,624995–314
Pension obligations abroad
–1,323–1,263–1,443–1,391–1,308
Total overfunding/(underfunding)
4,3482,911181–396–1,622

actuarial gain/loss over five years
in CHF '000
20092008200720062005
Experience adjustments on plan liabilities
3,1064,487–7,5472,967–7,308
Change in assumptions adjustment on plan liabilities
–4,197–7,8332,635–
Experience adjustments on plan assets
–1,299–12,241181–2,5563,571
Total actuarial gain/(loss)
–2,390–7,7544673,046–3,737

The principal actuarial assumptions used were as follows:

actuarial assumptions
Per cent
20092008
Discount rate
3.25%3.50%
Expected return on assets
3.75%3.75%
Future salary increases
2.00%2.00%
Future pension increase
0.25%0.25%
Life expectancy on the basis of EVK 2000 plus
4.50%4.00%

The expected returns of each asset class are based on the risk premium concept. Thereby it is supposed that the market compensates investors by higher expected returns for bearing risk that cannot be eliminated by diversification. Based on actual risk premiums and market outlook the expected risk premium for each asset class is estimated. The portfolio return results from the weighted sum of the asset class returns less charges.

asset allocation
Per cent
20092008
Cash and cash equivalents
9.3%9.8%
Bonds
46.1%47.3%
Shares
23.2%18.5%
Properties
16.8%15.9%
Other
4.6%8.5%
Total
100.0%100.0%

The expected employer’s contribution will be in an amount of CHF 3,102,000 in the 2010 financial year.

4.29 deferred income tax

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset them and then the deferred income taxes relate to the same tax authority. The details of deferred taxes assets and liabilities as well as the changes in the deferred income taxes (net) are disclosed in the following tables:

deferred income tax assets and liabilities
in CHF '000 at 31 December
Deferred
income tax
assets		Deferred
income tax
liabilities

Balance 2009		Deferred
income tax
assets		Deferred
income tax
liabilities

Balance 2008
Cash and cash equivalents and receivables
463–676–213724–100624
Inventories
1,657–5231,1342,301–5701,731
Construction contracts
––4,878–4,878––4,449–4,449
Non-current assets
257–3,411–3,154881–2,091–1,210
Current liabilities
3,277–33,2741,645–41,641
Non-current liabilities
40–45–543–44–1
Tax loss carry-forward
2,518–2,518254–254
Effects from offsetting
–5,3105,310––4,7784,778–
Total deferred income tax
2,902–4,226–1,3241,070–2,480–1,410

changes in deferred income taxes
in CHF '000
20092008
At 1 January
1,4101,796
Effects of currency translation
214–161
Change in scope of consolidation
––
Charges to income statement
–300–225
At 31 December
1,3241,410

maturities of deferred income taxes
in CHF '000 at 31 December
Current
due within
12 months		Non-current
due later than
12 months
Total
2009		Current
due within
12 months		Non-current
due later than
12 months
Total
2008
Deferred tax assets
5472,3552,9025345361,070
Deferred tax liabilities
–2,686–1,540–4,226–1,287–1,193–2,480
Deferred tax assets/(liabilities) net
–2,139815–1,324–753–657–1,410

Deferred income tax assets are recognised for tax loss carry-forwards to the extent that the realisation of the related tax benefit through the future taxable profits is probable. The Group did not recognise deferred tax income assets of CHF 153,000 (2008: CHF 363,000) in respect of losses amounting to CHF 727,000 (2008: CHF 1,728,000) that can be carried forward against future taxable income.

The following table shows the expiry of tax loss carry-forwards which have not been used for the recognition of deferred income tax assets. The applicable tax rate in case of realisation would be at 21% in the 2009 and 2008 financial years.

tax loss carry-forwards not recognised in the balance sheet
in CHF '000 at 31 December
20092008
Due within 12 months
285495
Due between 1 and 2 years
68667
Due between 2 and 3 years
11192
Due between 3 and 4 years
31111
Due between 4 and 5 years
52311
Later than 5 years
–52
Total tax loss carry-forwards not recognised in the balance sheet
7271,728

4.30 share capital

The number of approved ordinary shares is 1,960,000 (2008: 1,960,000). They are exclusively registered shares with a par value of CHF 1 per share (2008: CHF 1 per share). All shares are fully paid.

4.31 retained earnings
in CHF '000
Balance
2009 gross		Exchange
differences		Balance
2009 net		Balance
2008 gross		Exchange
differences		Balance
2008 net
Retained earnings at 1 January
170,496–5,776164,720132,334–652131,682
Change
–981367–61438,162–5,12433,038
Retained earnings at 31 December
169,515–5,409164,106170,496–5,776164,720

The exchange differences relate to the translation of the separate financial statements of the Group’s subsidiaries into Swiss Francs. All associated companies prepare their financial statements in Swiss Francs.