annual financial statement 2011 - conwert Immobilien Invest SE

CONWERT IMMOBILIEN INVEST SE
ANNUAL FINANCIAL 2011 STATEMENT ANNUAL REPORT 2011
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SUBSEQUENT MEASUREMENT
Subsequent measurement is based on the market value. If the criteria for cash flow hedge
accounting as defined in IAS 39 are met, unrealised gains or losses relating to the effective part of
the hedge are recognised in other comprehensive income. The amounts recognised in other comprehensive
income are transferred to profit or loss of the period in which the hedged transaction
influences results, e.g. when the hedged financial income or expense is recognised or when an
expected sale is completed. If a hedge results in the recognition of a non-financial asset or a nonfinancial
liability, the amounts recognised in equity are accounted for a part of the acquisition cost
of the non-financial asset or a non-financial liability at the date of inception.
If a forecast transaction or firm commitment is no longer expected to occur, the amounts previously
recognised in other comprehensive income are transferred to profit or loss. When the hedging
instrument expires or is sold, terminated or exercised without replacement or rollover, or when
the criteria for hedge accounting are no longer met, the amounts previously recognised in other
comprehensive income remain as a separate component of equity until the forecast transaction or
firm commitment occurs.
Gains or losses during a financial year, which arise from changes in the fair value of derivative
financial instruments that do not meet the criteria for recognition as hedges, as well as the ineffective
part of effective hedging instruments are recognised immediately to profit or loss.
2.4.9. SHARE BUYBACK PROGRAMME, SHARE PREMIUM AND OTHER RESERVES
When the conwert Group purchases its own shares, these shares are recognised at cost and
deducted from equity. They are reported separately on the balance sheet as “treasury shares“.
When treasury shares are sold, the actual proceeds on sale less transaction costs are recorded as
an increase in equity. Differences to the amount recognised for the purchase of treasury shares
are charged or credited to the share premium. Additional information on the share buyback programme
is provided under note 8.7.1.
The share premium includes the premium from earlier capital increases as well as shareholder
contributions (from the year the company was founded). The transaction costs (net of tax) related
to the capital increases were deducted.
Other reserves include the reserves for unrealised gains, the cash flow hedge, available-for-sale
financial instruments, the equity component of the convertible bond and settlement items from
foreign exchange translation.
2.4.10. PROVISIONS, CONTINGENT LIABILITIES AND RECEIVABLES
A provision is recognised if and only if when the Group has a present obligation arising from a past
event; if it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; and if the amount of the obligation can be reliably estimated.
Contingent liabilities are not recognised to the balance sheet, but are disclosed in the notes. They
are not disclosed when the possibility of an outflow of resources embodying economic benefits is
improbable.
Contingent receivables are not recognised on the balance sheet, but disclosed when the inflow of
resources embodying economic benefits is probable.