(1) The term “cost of acquisition” designates the expenditures incurred in order to acquire an asset and to bring it into an operational condition, insofar as it is possible to attribute such cost to the asset on an individual basis. The cost of acquisition also includes the incidental expenses as well as the expenses incurred subsequent to the acquisition. Where it is possible to attribute reductions in the acquisition price to the asset on an individual basis, they are to be deducted.
(2) The term “production cost” designates the expenditures incurred for the consumption of goods and for the use of services in order to produce an asset, to expand it or to improve it materially beyond its original state. This includes cost of materials, the manufacturing cost and the special expenses directly attributable to the manufactured goods, as well as a reasonable proportion of the materials overheads, manufacturing overheads and the attrition of the fixed assets’ value, insofar as such attrition is caused by the manufacturing process. In calculating the production cost, a reasonable proportion of the general administrative expenses as well as reasonable expenditures for social services of the operation, for voluntary employee benefits and for the company old-age pension scheme may be included in this item to the extent that they relate to the period of production. The costs of research and the distribution costs may not be included in this item.
(2a) The term “production cost of an intangible asset created by the enterprise itself and forming part of the fixed assets” designates the expenditures incurred for its development pursuant to subsection (2). The term “development” designates the application of research results or of other knowledge to the new development of goods or processes or to the innovation of goods or processes by means of modifications of a material nature. The term “research” designates the independent and systematic search for new scientific or technical insights or experiences of a general nature, the technical usability and economic viability of which are fundamentally impossible to assess. Where it is impossible to distinguish research and development from one another in reliable fashion, they may not be posted as assets.
(3) Interest for third-party capital does not form part of the production cost. Interest for third-party capital used to finance the production of an asset may be recognised to the extent it relates to the period of production; in such event, the interest will be considered to constitute a production cost of the asset.
(4) The fair value corresponds to the market price. Where there is no active market that would allow the market price to be identified, the fair value is to be determined with the aid of generally accepted valuation methods. Where it is not possible to identify the fair value, either pursuant to sentence 1 or pursuant to sentence 2, the cost of acquisition or production cost is to be carried pursuant to section 253 (4). The last fair value identified pursuant to sentence 1 or 2 is considered the cost of acquisition or production cost within the meaning of sentence 3.