CG malls europe - Commerz Real

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.1. Basis of preparation (continued)
• IAS 27, ‘Consolidated and separate financial statements’ (revised 2008; effective for annual periods beginning on or
after July 1, 2009). The revised standard requires the effects of all transactions with non-controlling interests to be
recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains
and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is
re-measured to fair value and a gain or loss is recognised in profit or loss.
• IFRS 3, ‘Business combinations’ (revised 2008; effective for business combinations for which the acquisition date
is on or after the beginning of the first annual reporting period beginning on or after July 1, 2009). The revised
standard continues to apply the acquisition method to business combinations, with some significant changes. For
example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent
payments classified as debt subsequently re-measured through the income statement. There is a choice on an
acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair vale or at the
non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition-related costs should be
expensed. The management of the Fund will apply the revised standard prospectively to all business combinations
from 1 January 2010.
• IFRS 9, ‘Financial instruments: Classification and measurement’. In November 2009, the Board issued the first part of
IFRS 9 relating to the classification and measurement of financial assets. IFRS 9 will ultimately replace IAS 39. The
standard requires an entity to classify its financial assets on the basis of the entity’s business model for managing
the financial assets and the contractual cash flow characteristics of the financial asset, and subsequently measures
the financial assets as either at amortised cost or fair value. The new standard is mandatory for annual periods
beginning on or after January 1, 2013.
(d) Early adoption of standards
In 2009, the Group did not early adopt any new or amended standards and do not plan to early adopt any of the standards
issued not yet effective.
2.2. Consolidation
The audited consolidated financial statements include the accounts of the Fund and its wholly owned subsidiaries (the
“Group”).
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The
existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing
whether the Group controls another entity.
Joint control is the contractually agreed sharing of control over an economic activity. There are no jointly controlled
entities within the Group.