annual financial statement 2011 - conwert Immobilien Invest SE

INTRO | MANAGEMENT REPORT |
| FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
Notes
2.4.11. GOVERNMENT GRANTS
Government grants are recognised as income and matched with the costs they are intended to
compensate. The government grants received for assets (subsidies as defined by the provisions
of the Vienna residential construction and renovation act) represent subsidies for new residential
construction. They were accounted for in accordance with the option provided by IAS 20, i.e. the
subsidies were deducted from the carrying amount of the individual assets prior to the revaluation
of the individual assets and liabilities. In 2011 no companies were acquired that had received
government grants for new residential construction in earlier years (in 2010, one company).
2.4.12. REVENUE RECOGNITION
Revenue is recognised when it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured. Revenue is measured at the fair value of the consideration
received, excluding discounts, rebates and value added tax or other duties.
Net rental income and operating costs are recognised on an accrual basis in agreement with the
provisions of the underlying lease.
Revenue from the sale of properties is recognised in accordance with the transfer of dangers and
risk as specified in the underlying contract, when the major risks and opportunities associated with
ownership are transferred to the buyer.
Service revenues are recognised in accordance with the relevant performance.
2.4.13. INCOME TAXES
Income tax expense is based on annual profit, and also includes deferred taxes.
Tax refunds and tax liabilities for the current and prior reporting periods are recorded at the
amount that is expected to be received from or paid to the taxation authorities. The calculation of
these amounts is based on the tax rates and tax regulations in effect as of the balance sheet date.
The taxes relating to items that are recognised in other comprehensive income or directly in equity
are not recognised to profit or loss, but in other comprehensive income or in equity.
Deferred taxes are calculated using the balance sheet liability method. They reflect the tax effects
of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts of these items as defined by the applicable tax regulations.
Deferred tax assets and deferred tax liabilities are calculated using the tax rates that are expected
to apply to taxable income in the year the temporary differences are settled. This calculation
applies the tax rates (and tax laws) that have been enacted or substantively enacted as of the
balance sheet date. The amount of the deferred tax assets and deferred tax liabilities reflects the
tax effects that the Group would expect if the carrying amounts of the assets were realised and the
liabilities were settled as of the balance sheet date.
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