Interest income — Interest income derived from the Group’s
asset management and lending activities is recognised as interest
accrues, using the effective interest rate method.
Dividend income / distributions — Dividend income as well as
the obligation to distribute dividends to the Group’s shareholders
is recognised when the shareholders’ right to receive payment is
established (see “Available for sale fi nancial assets”).
Leasing — The determination of whether an arrangement is or
contains a lease is based on the substance of the arrangement
and requires an assessment of (i) whether the fulfi lment of the
arrangement is dependent on the use of a specifi c asset or assets,
and (ii) the arrangement conveys a right to use the asset(s).
The Group is a lessor and a lessee of assets, primarily in
connection with commercial aircraft sales financing. Lease
transactions where substantially all risks and rewards incident
to ownership are transferred from the lessor to the lessee are
accounted for as fi nance leases. All other leases are accounted
for as operating leases.
Assets leased out under operating leases are included in property,
plant and equipment at cost less accumulated depreciation
(see Note 14 “Property, plant and equipment”). Rental income
from operating leases (e.g. aircraft) is recorded as revenue on a
straight-line basis over the term of the lease. Assets leased out
under fi nance leases cease to be recognised in the Consolidated
Statement of Financial Position after the inception of the lease.
Instead, a fi nance lease receivable representing the discounted
future lease payments to be received from the lessee plus any
discounted unguaranteed residual value is recorded as part of
other long-term fi nancial assets (see Note 17 “Other investments
and other long-term fi nancial assets”). Unearned fi nance income is
recorded over time in “Interest income”. Revenues and the related
cost of sales are recognised at the inception of the fi nance lease.
Assets obtained under fi nance leases are included in property,
plant and equipment at cost less accumulated depreciation and
impairment if any (see Note 14 “Property, plant and equipment”),
and give rise to an associated liability from fi nance leases. If such
assets are further leased out to customers, they are classifi ed
either as an operating lease or as a fi nance lease, with the
Group being the lessor (headlease-sublease transactions), and
accounted for accordingly. When the Group is the lessee under
an operating lease contract, rental payments are recognised on a
straight line basis over the lease term (see Note 33 “Commitments
and contingencies” for future operating lease commitments). An
operating lease may also serve as a headlease in a headleasesublease
transaction. If so, the related sublease is an operating
lease as well. Headlease-sublease transactions typically form part
of commercial aircraft customer fi nancing transactions.
Product-related expenses — Expenses for advertising, sales
promotion and other sales-related expenses are charged to
expense as incurred. Provisions for estimated warranty costs
are recorded at the time the related sale is recorded.
Research and development expenses — Research and
development activities can be (i) contracted or (ii) self-initiated.
(i) Costs for contracted research and development activities,
carried out in the scope of externally financed research and
development contracts, are expensed when the related
revenues are recorded.
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AIRBUS GROUP FINANCIAL STATEMENTS 2014 25
2
Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation
(ii) Costs for self-initiated research and development activities
are assessed whether they qualify for recognition as internally
generated intangible assets. An intangible asset may only
be recognised if technical as well as commercial feasibility
can be demonstrated and cost can be measured reliably. It
must also be probable that the intangible asset will generate
future economic benefits and that it is clearly identifiable and
allocable to a specific product.
Further to meeting these criteria, only such costs that relate solely
to the development phase of a self-initiated project are capitalised.
Any costs that are classifi ed as part of the research phase of a selfinitiated
project are expensed as incurred. If the research phase
cannot be clearly distinguished from the development phase,
the respective project related costs are treated as if they were
incurred in the research phase only.
Capitalised development costs are generally amortised over
the estimated number of units produced. In case the number
of units produced cannot be estimated reliably capitalised
development cost are amortised over the estimated useful life
of the internally generated intangible asset. Amortisation of
capitalised development costs is recognised in cost of sales.
Internally generated intangible assets are reviewed for impairment
annually when the asset is not yet in use and further on whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable.
Income tax credits granted for research and development activities
are deducted from corresponding expenses or from capitalised
amounts when earned.