CG malls europe - Commerz Real

Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
2.2. Consolidation (continued)
Financial Statements
An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant
influence and that is neither a subsidiary nor an interest in a joint venture. No consolidated entity holds interests in
any associate.
Subsidiaries have been fully consolidated from the date on which control was transferred to the Group. They are deconsolidated
from the date control ceases.
Accounting for business combinations under IFRS 3 only applies if it is considered that a business has been acquired.
Under IFRS 3, ‘Business combinations’, a business is defined as an integrated set of activities and assets conducted and
managed for the purpose of providing a return to investors or lower costs or other economic benefits directly and proportionately
to policyholders or participants. A business generally consists of inputs, processes applied to those inputs,
and resulting outputs that are, or will be, used to generate revenues. In the absence of such criteria, a group of assets is
deemed to have been acquired. If goodwill is present in a transferred set of activities and assets, the transferred set is
presumed to be a business.
For acquisitions meeting the definition of a business, the purchase method of accounting is used. The cost of an acquisition
is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at
the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the
Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the
fair value of the Group’s share of the net assets acquired, the difference is recognised directly in the profit or loss for the
year as negative goodwill.
For acquisitions not meeting the definition of a business, the Group allocates the cost between the individual identifiable
assets and liabilities in the Group based on their relative fair values at the date of acquisition. Such transactions or
events do not give rise to goodwill.
All the Group companies have December 31 as their year end. Consolidated financial statements are prepared using uniform
accounting policies for like transactions. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group.
Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The Group applies a policy of treating transactions with non-controlling interests as transactions with parties external
to the Group. Non-controlling interests represent the portion of profit and net assets not held by the Group. They are
presented separately in the statement of comprehensive income and in the consolidated statement of financial position
separately from the amounts attributable to the owners of the parent. At year end, no non-controlling interest exists.
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