Values

86
Group Financial Statements
Notes
Material jointly controlled companies within the meaning of
IAS 31 are proportionately consolidated. Material associates as
defi ned by IAS 28 are consolidated using the equity method. Th is
is generally the case for voting rights between 20 and 50 percent.
Voting rights of less than 20 percent are accounted for using the
equity method in accordance with IAS 28.7(a). See note 32 for
a listing of major subsidiaries and shareholdings. Accounting
and valuation policies are applied uniformly for all consolidated
fi nancial statements within the Bertelsmann Group. Th e
Bertelsmann Group recognizes immaterial participations at
cost.
In accordance with IFRS 3, business combinations are accounted
for using the purchase method. As part of this method,
the acquisition cost of the investment on the date of acquisition
is off set against the equity share measured at fair value at the
acquisition date. If the acquisition cost exceeds the fair values
of the acquirer’s interest in the assets, liabilities and contingent
liabilities acquired, this diff erence is recognized in the balance
sheet as goodwill. Deferred taxes are recognized on temporary
diff erences arising as a result of recognizing the proportion of
assets and liabilities acquired at fair value at the time of acquisition
to the extent that such fair value adjustments are not also
recognized for tax purposes. Diff erences arising as a result of
recognizing the assets and liabilities acquired at fair value are
carried forward, written down or released in the periods following
the acquisition, depending on the nature of the assets and
liabilities to which they relate. Negative goodwill is refl ected as
income in the period in which the acquisition is made. Minority
interests also include the fair values of the respective minorities’
Scope of Consolidation
Including Bertelsmann AG, the Group consists of a total of 1,013
companies (previous year: 1,086). Of these, 857 (previous year:
915) are fully consolidated.
43 joint ventures are proportionally consolidated (previous
year: 51). 113 associated companies are consolidated using the
equity method (previous year: 120). A total of 236 (previous
year: 222) affi liated companies without signifi cant business
operations were excluded from consolidation due to their negligible
importance for the fi nancial position, performance and
changes in fi nancial positions of the Group. Th is includes 45
companies that would have been consolidated using the equity
method if they had met the criteria for materiality.
Th e following changes were made compared with the previous
year to the companies included in the consolidated
fi nancial statements:
share in the assets and liabilities. If the acquisition costs of the
business combination or the fair values to be allocated to the
identifi able assets and liabilities or contingent liabilities of the
company acquired on the date of initial accounting can only
be provisionally identifi ed, the business combination is carried
using these provisional values. Initial accounting is completed
in line with IFRS 3.62. Comparative information for reporting
periods prior to the completion of initial accounting are
presented as if these had already been completed on the date
of acquisition. Investments in proportionately consolidated
companies are measured using the same principles.
Investments in associated companies recognized using the
equity method are included at the proportionate equity share
of the investment measured at fair value at the acquisition date.
Th e same method used for fully consolidated subsidiaries is
used when accounting for diff erences between the cost of a
business combination at the time of acquisition and the share
of net assets acquired. Losses at associates which exceed their
carrying amounts are not recognized unless there is an obligation
to make additional contributions.
All intercompany profi ts, losses, revenues, expenses, income,
receivables, liabilities and provisions falling within the scope of
consolidation are eliminated. Deferred taxes are recognized on
temporary diff erences arising on consolidation in accordance
with IAS 12. Proportionate consolidation is performed on a
pro-rata basis using the same principles. Th e Group’s share of
unrealized gains or losses on intercompany transactions between
Group companies and associated companies is eliminated.
In accordance with section 325 in conjunction with section
313 (4) of the German Commercial Code (old version), the complete
list of the Bertelsmann Group’s shareholdings is published
for the last time in the electronic Bundesanzeiger (Federal
Gazette) as an annex to the present fi nancial statements.
Th ose German subsidiaries disclosed in note 33 have elected
to be exempted from the preparation, audit and publication
of fi nancial statements in the year under review as set out in
section 264 (3) and 264b of the German Commercial Code.
Bertelsmann Annual Report 2009