AnnuAl report 2010 - Walter Meier

36 / Consolidated FinanCial statements
Walter Meier / annual report 2010
2.3
amendments applicable to periods beginning after January 1, 2011
the following new or revised standards and interpretations will come into effect for reporting periods
beginning on or after January 1, 2011:
– iFrS 9 Financial instruments: Classification and Measurement: new (applicable to financial years, which
start on or after January 1, 2013)
– iFrS 7 Financial instruments: Disclosures: changes to improve disclosures on the transfer of financial
assets (applicable to financial years, which start on or after July 1, 2011)
– iaS 24 related party Disclosures: revised definition of related parties (applicable to financial years, which
start on or after January 1, 2011)
– iaS 32 Classification of rights issues (applicable to financial years, which start on or after February 1,
2010)
– iFriC 14 prepayment of a minimum funding requirements and their interaction (applicable to financial
years, which start on or after January 1, 2011)
– iFriC 19 extinguishing Financial liabilities with equity instruments: new (applicable to financial years,
which start on or after July 1, 2010)
– iaS12 income tax: recovery of underlying assets (applicable to financial years, which start on or after
January 1, 2012)
– 2010 annual improvements to iFrS - adjustments to various standards
Walter Meier has not early adopted any of these revised standards or interpretations. Group Management
of Walter Meier has assessed the impact of the changes to these standards and interpretations and has
come to the conclusion that from the current viewpoint there will be no material impact on the consolidated
net profit and the financial position.
errors in the presentation of outbound freight, agent commission charges and the cost of installations by
third parties
in the previous year, freight costs for deliveries to customers, the costs of installations by third parties and
agent commission charges were recorded as sales deductions (component of net sales). the costs of
outbound freight may not be deducted from sales but must be understood as the cost of distribution. the
costs of installations supplied by third parties count as the cost of goods sold and services provided. if the
significant risks and rewards entailed in a sale of goods or a supply of services remain with Walter Meier
and are not transferred to the agent, commission charges must be recorded as the cost of distribution.
the adjustments, which have no impact on the balance sheet and the annual result, were effected
retrospectively in accordance with the provisions of iaS 8 accounting policies, Changes in accounting
estimates and errors. For 2009, net sales proceeds increased by CHF 16.5 million, the cost of products sold
and services provided as well as the cost of distribution rose by CHF 1.1 million and CHF 15.4 million,
respectively. the Group opted not to present a third balance sheet as of January 1, 2009, since there were
no changes.
summary of key accounting and measurement policies
Business combinations and goodwill
BuSineSS CoMBinationS FroM January 1, 2010
Business combinations are accounted for using the purchase method. the acquisition costs of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date faire
value and the amount of any non-controlling interest in the acquiree. For each business combination, the
acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate
share of the acquiree’s identifiable net assets. acquisition costs incurred are expensed and included in
administrative expenses.
any contingent consideration to be transferred by the acquirer will be recognized at fair value on the
acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to
be an asset or liability will be recognized either in the consolidated income statement or in the consolidated
statement of comprehensive income. a contingent consideration, which is classified as equity will
be remeasured and its subsequent settlement will be accounted for in equity.