palfinger at a glance

noteS TO THE CONSolidated FINANCIAL StatementS
conSolidated FINANCIAL StatementS FOR THE Year ENDED 31 DECEMBER 2011
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Acquisitions made in 2010
PALFingeR MARINE GROUP
In the 2010 consolidated financial statements, the acquired net assets of the Palfinger Marine Group were determined
on the basis of the estimated fair values at the time of acquisition. As the estimated fair values determined
at that time correspond to the final fair values, no adjustments to the acquired net assets had to be made.
For details on the acquisitions made in 2010 please refer to the 2010 consolidated financial statements.
Liquidations
The entry for MBB Liftsystems Ltd. (in liquidation), Cobham, Great Britain, was finally deleted from the
commercial register with effect from 29 June 2011.
Associated companies
PALFingeR SOUTHERN AFRica (PTY.) LTD.
As at 1 April 2011, the remaining shares in Palfinger Southern Africa (Pty.) Ltd., amounting to 36 per cent,
were sold to the former co-owners.
KRAFtinVest PALFingeR BeteiLIGUNGS-GMBH
As described above, Kraftinvest Palfinger Beteiligungs-GmbH was fully consolidated through an increase in the
shares held by PALFINGER from 49 per cent to 80 per cent.
Consolidation method
Business combinations are accounted for using the acquisition method. The acquisition cost of a business
acquisition is calculated as the total consideration transferred measured at its acquisition-date fair value and
the non-controlling interests in the acquiree. For each business combination, PALFINGER AG measures the noncontrolling
interests in the acquiree either at their fair value or at the proportionate share of the identifiable net
assets of the acquiree. Costs incurred in connection with the business combination are expensed.
When PALFINGER AG acquires a business entity, it determines the proper classification and designation of the
financial assets and assumed liabilities in accordance with the provisions of the contract, the economic conditions
and the general conditions prevailing at the time of the transaction.
For business combinations achieved in stages, the equity interest in the entity previously held by PALFINGER AG is
remeasured at its fair value at the time of the transaction and the resulting gain or loss recognized in the income
statement.
The agreed consideration is recognized at its fair value at the time of transaction. Subsequent changes in the fair
value of a contingent consideration representing an asset or liability are recognized either through the income
statement or under total comprehensive income in accordance with IAS 39. A contingent consideration that is
classified as equity is not remeasured, but is recognized in equity at the point in time that it is made.
Goodwill is initially measured at cost, this being the excess of the consideration transferred plus the fair value
of the previously held non-controlling interests over the Group’s identifiable assets and liabilities acquired. If this
consideration is less than the fair value of the net assets of the acquired subsidiary, the difference is recognized
through the income statement.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated
to each of the Group’s cash-generating units that are expected to benefit from the synergies of the business combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those cash-generating
units.
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palfinger Annual Report 2011