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  "notes": "Page 41 of the Deutsche Lufthansa AG Financial Statements 2024.",
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      "text": "From our perspective, the valuation of aircraft including equity investments in aircraft owning companies was a key audit matter in our audit as the valuation of these items, which are significant in amount, is highly complex.",
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      "text": "Shares in aircraft owning companies are measured at the lower of acquisition cost or net realizable value for commercial law purposes. The net realizable value of the equity investment is calculated based on the net realizable value of the assets held by the aircraft owning company, primarily the aircraft, which is derived from TAVR.",
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      "text": "Our audit procedures did not give rise to any reservations regarding the recognition of traffic revenue, including the recognition of unused flight documents.",
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      "text": "Our audit procedures did not lead to any reservations relating to the valuation of aircraft including equity investments in aircraft owning companies.",
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      "text": "The disclosures for the accounting policies applied concerning aircraft and financial assets, as well as the related judgments exercised are contained in sections “2. Summary of significant accounting policies”, “3. Fixed assets” and “24. Depreciation, amortization and impairment” in the notes to the financial statements.",
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      "text": "To assess the correctness of the recognition of additions to and disposals of aircraft as well as prepayments made for aircraft, we referred, among other things, to the related purchase agreements and transfer documents as well as the payment schedules and proofs of payment, we checked the correct recognition of the carrying amounts of the equity investments in aircraft owning companies. For leased aircraft, we examined the lease agreements concluded and assessed these in particular with regard to the correct attribution of economic ownership. Furthermore, we assessed the appropriateness of the valuation assumptions used by the executive directors to determine the depreciation of the aircraft and the net realizable value of the aircraft and aircraft owning companies, taking the available information into account.",
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      "text": "We firstly scrutinized the internal control system established by the executive directors for the valuation of aircraft and of equity investments in aircraft owning companies by testing the design of the processes and assessing the risk of material misstatement.",
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      "text": "The valuation of aircraft for commercial law purposes is based on acquisition cost less depreciation or impairment losses. The Company calculates depreciation on the basis of the average actual useful lives of aircraft. Impairment losses are recognized if the impairment of an aircraft is permanent. Such impairment losses are recognized to reflect the lower net realizable value, taking into account The Aircraft Value Reference (TAVR) regularly published by Aircraft Value Analysis Company Ltd, Derby, UK.",
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      "text": "In the aircraft balance sheet item of its annual financial statements, the Company recognizes aircraft that it legally owns as well as prepayments made for new aircraft ordered. The Company also leases aircraft from aircraft owning companies in which the Company has a direct or indirect equity investment and whose direct equity investments are recognized under the item financial investments, as well as from external lessors. Leased aircraft are recognized in the Company's annual financial statements if the Company is the economic owner. Economic ownership is assessed according to the general principles of commercial law and considering decrees on leasing issued by the tax authorities, where applicable.",
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      "text": "With regard to the accounting policies used for revenue recognition and prepayments received for flight documents as well as the associated exercise of judgment, we refer to the disclosures under “2. Summary of significant accounting policies”, “15. Liabilities” and “19. Traffic revenue” in the notes to the financial statements.",
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      "text": "In addition, we assessed the method used in the impairment test conducted by the executive directors. The impairment test of both the aircraft in the legal ownership of the Company and of the aircraft owning companies is based, among other things, on observable market data on prices, which are determined taking TAVR into account. We assessed whether the prices used in the impairment tests for each aircraft model were transparently derived from TAVR. We also examined the assessment of the executive directors of when impairment is expected to be permanent. Furthermore, we checked the clerical accuracy of the calculation of the excess or shortfall in the carrying amounts of the aircraft and the equity investments in individual periods compared with the TAVR values for each aircraft. We also checked whether all aircraft recognized in asset accounting were included in the executive directors' impairment test. In addition, we scrutinized and checked fleet management's assessment on the use of the TAVR values as references for the impairment test.",
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