annual financial statement 2011 - conwert Immobilien Invest SE

INTRO | MANAGEMENT REPORT |
| FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
Notes
IFRS 10 “Consolidated Financial Statements“ will replace IAS 27 ‘Consolidated and Separate
Financial Statements‘ and SIC 12 ‘Consolidation – Special Purpose Entities‘ and includes guidelines
for control and consolidation. The definition of control will be clarified to include the possibility of
exercising control over activities that can lead to variable cash flows from the entity. Cash flows
can be positive, negative or both. The consolidation requirements remain unchanged. In the conwert
Group, the individual investments must be evaluated on the basis of this new definition of
control but no major changes are expected. This new standard has not yet been adopted by the EU.
IFRS 11 “Joint Arrangements“ defines two types of joint arrangements: joint operations and joint
ventures. A joint operation represents an arrangement under which the parties with joint control
have direct rights to the related assets the liabilities. A party to a joint operation recognises its
share based on its involvement in the joint operation and not based on its holding. In contrast,
a party to a joint venture has no rights to individual assets or liabilities. Instead, parties to joint ventures
receive a share of the net assets and, in this way, a share of the results generated by the joint
venture from its activities. Joint venture are accounted for by applying the equity method; proportionate
consolidated is no longer permitted by IFRS 11. The conwert Group must review its existing
or recently concluded agreements to determine whether it has invested in a joint arrangement or
a joint venture under the new standard. This new standard has not yet been adopted by the EU.
IFRS 12 “Disclosure of Interests in Other Entities“ defined the required disclosures for companies
that have an interest in other entities. The new standard requires companies to disclose information
that enables the users of financial statements to evaluate the nature of and risks associated
with these interests and the financial effects of interests in subsidiaries, associates, joint arrangements
and unconsolidated structured entities (special purposes entities). This new standard has
not yet been adopted by the EU.
IFRS 13 “Fair Value Measurement“ defines fair value and expands the required disclosures on fair
value. Fair value is defined as the price that would be received on the sale of an asset or paid on the
transfer of a liability in a transaction between independent market participants on the measurement
date. However, the standard does not provide any guidelines on the cases for which fair value
is to be used. Since nearly all companies – and therefore also the conwert Group – use measurement
at fair value, these new requirements must be met. The related effects on the conwert Group
will focus primarily on the increased disclosure requirements. This new standard has not yet been
adopted by the EU.
The conwert Group does not expect any material effects from the initial application of the new or
revised standards or interpretations on the presentation of its financial position, financial performance
or cash flows.
55