Annual Report 2007 - Muehlhan AG

50
Notes to the Group
Consolidated financial Statements
i. general coMMents
the core business of Muehlhan aG (hereinafter “MyaG” or “company”) and its subsidiaries is surface protection for
industrial plants, Ship Newbuilding, Ship repair and offshore facilities. the core business is complemented by access
technologies, steel construction and welding services. the company is headquartered at Schlinckstrasse 3, Hamburg,
Germany. the competent registration court is in Hamburg.
the Group consolidated financial statements of MyaG and its subsidiaries at 31 december 2006 were prepared
for the first time in accordance with the international financial reporting Standards (ifrS) promulgated by the
inter national accounting Standards board (iaSb) including the interpretations of the international financial reporting
interpretations Committee (ifriC) and the complementary provisions of German commercial law applicable under
Section 315a para. 1 of the Commercial Code (HGb). ifrS 1, the authoritative standard for first-time applications,
was observed. for the Group Consolidated financial Statement as of 31 december 2007, all ifrS and interpretations
of the ifriC adopted by the Eu commission as of the balance sheet date whose application is mandatory have
been complied with.
the consolidated financial statements were prepared in Euro. rounding differences may occur if amounts are shown
in millions or thousands of Euros since the individual items included in the calculations are stated in full figures.
ii. signiFicant consolidation, accounting and
valuation principles
the Group consolidated income statement was prepared under the total cost method.
Capital consolidation is based on the purchase method. the assets and liabilities of the subsidiaries included in the
consolidated financial statements are recognized at their fair values at the transaction date including expenses directly
attributable to the acquisition. in the initial consolidation, assets, liabilities and contingent liabilities identifiable within the
scope of a merger are recognized at the fair value attributable at the time of acquisition, irrespective of the size of minority
interests. the surplus of the cost of acquisition over the Group’s share in the attributable fair value of net assets is
recognized as goodwill. if the costs of acquisition are lower than the fair value of net assets attributable to the acquired
subsidiary, the balance is taken direct to the income statement.
Minority interests are stated at the attributable fair value of assets and liabilities corresponding to their share. losses
attributable to minority interests in excess of their share were allocated to the parent company.
intercompany receivables and payables are eliminated. differences arising on currency exchanges compared to those in
the prior year are accounted for affecting current period results, if originating from the reporting period.
in the course of income, proceeds from intercompany sales as well as group internal income and the attributable
expenses are set off. Non realized intergroup profits are eliminated.