Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

Lastly, when the Parent Company directly or
indirectly has a significant influence in an
investee’s representation and decision-making
bodies but does not have control, the investee was
accounted for by the equity method. In general it
is assumed that there is significant influence when
the Group’s percentage of ownership is over 20% in
the case of unlisted investees, or over 3% in the
case of listed investees, provided the percentage of
ownership does not exceed 50%.
All material balances and transactions between
fully or proportionally consolidated companies were
eliminated in consolidation.
The value of other shareholders´ holdings in the net
worth and results of the fully consolidated
companies are presented under the “Minority
Interests” and “Income Attributable to Minority
Interests” captions, respectively, in the
accompanying consolidated balance sheet and
consolidated statement of income.
In the consolidation process the accounting policies
and methods used by the consolidated companies
were unified with those used by the Group.
The methods used for translating to euros the various
captions in the balance sheets and income statements
of the foreign companies that were included in the
scope of consolidation were as follows:
a. Assets and liabilities were translated at the
official year-end exchange rates.
b. Capital and reserves were translated at
historical exchange rates.
c. The income statements were translated at the
average exchange rates for the year.
The differences arising from the application of
these methods were included under the
“Shareholders’ Equity – Translation Differences”
caption.
Altadis Group 2004 Financial Information 91
The accompanying consolidated financial
statements do not include the tax effect, if any, of
transferring the reserves of the consolidated
companies to the Parent Company’s equity.
c) Comparative information
The most significant variations in the scope of
consolidation in 2003 and 2004 with an effect on
the interyear comparison were as follows:
a. Acquisitions in 2003
In July 2003 the Parent Company acquired 80% of
Régie des Tabacs, S.A. of Morocco (“RTM”) for
€1,309 million. In addition, in October 2003 the
Tabacalera Cigars International Subgroup acquired
a 51% holding in JR Cigar Inc., which operates in
the United States.
For comparison purposes, the impact of these
acquisitions on the “Net sales” and “Consolidated
Income” captions is as follows:
Thousand of euros
2003 (*) 2004
Net sales 199,082 558,480
Consolidated income (5,408) (7,905)
(*) Figures consolidated at the Altadis Group since the
acquisition date.
b. Acquisitions in 2004
At the end of 2004, the Group acquired 99.69% of
Balkanskaya Zvezda (“Balkan Star”), whose
registered office is located in Russia, for €245
million. In addition, in December 2004 the
subsidiary Logista, S.A. acquired 96% of the Italian
group Etinera for €567 million.
For comparison purposes, the impact of these two
acquisitions on the “Net sales”, “Consolidated
Income” and “Total Assets” captions is as follows: