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POLYTEC 2012 Notes
The gain resulting from the disposal of the Zaragoza site as well
as from the deconsolidation of POLYTEC Interior Zaragoza S.L.
was calculated by offsetting the disposed net assets by the total
consideration received for the disposal.
TEUR
Consideration received 1,429
Net assets sold -1,104
Gain on disposal 326
The gain on disposal was recognized in the deconsolidation
profit or loss item in the consolidated income statement.
Allowing for the cash and cash equivalents of the divested
Zaragoza site of TEUR 653, cash flow of TEUR 776 is generated.
The net assets divested as a result of the sale of the Zaragoza
site are as follows:
TEUR
Non-current assets 144
Current assets 1,491
Non-current provisions and liabilities 0
Current provisions and liabilities -532
Net assets of Polytec Interior Zaragoza S.L. as of Mar. 31, 2012 1,104
2. METHods of consolidation
The consolidation of investments for acquisitions until March 31,
2004 was performed on the basis of the book value method by
offsetting the acquisition costs of the investments against the
equity ratio allotted to these investments at the time of acquisition.
A goodwill will be assigned to the assets as far as possible.
A badwill was analyzed in previous years for its reason of
accrual and, if affecting future losses and expenses, recorded in
accordance with IAS 22 as income at the time of occurrence of
these losses and expenses.
IFRS 3 “Business Combinations” was applied for income occurred
after March 31, 2004. Thus, the consolidation of investments
was performed on the basis of the revaluation method (method
concerning all assets and liabilities at Fair Value, also in the
case of non-controlling interests and complete disclosure of the
hidden reserves, independent from the amount of the minority
interests). The investment book value is opposed by the
proportionate, re-evaluated equity of the subsidiary (purchase
accounting).
Remaining differences will be capitalized as goodwill. Goodwill
occurred prior to January 1, 2005 were recorded with the
book value of December 31, 2004 and are subject to an annual
impairment test.
If the acquisition costs are lower as the net assets, the difference
(negative consolidation difference) will be recognized in
the income statement of the acquisition period.
Further information with regard to the effects of the deconsolidation
carried out in the year under review can be found in
section B. 1.
Non-controlling interests are disclosed in the Consolidated
Financial Statements under equity in accordance with IAS 27.
All accounts receivables and payables as well as expenses and
earnings resulting from transactions between the consolidated
companies were eliminated by taking into account the principle
of materiality. Intermediate results from group-internal deliveries
were also eliminated as far as they are material.
3. Currency translation
Business transactions with foreign currencies
All transactions in foreign currencies were valued at the
exchange rate of the transaction date in the individual companies.
Monetary assets and liabilities in foreign currencies
are converted at the exchange rate on the balance sheet date.
Resulting exchange rate differences are recorded in the profit
and loss statement of the group.
Translation of individual financial statements
in foreign currencies
The functional currency of non-euro subsidiaries is the corresponding
national currency; however, this does not apply to the
Turkish company, whose functional currency is the euro. Assets
and liabilities of international subsidiaries were converted with
the reference exchange rate of the European Central Bank on
the balance sheet date. Positions of the profit and loss statement
of the Group were converted with average exchange rates
of the financial year under review.
Exchange rate differences of monetary positions, which, from
an economic point of view, belong to a foreign company like, for
example, long-term receivables and loans will be accounted with
the Group equity capital and will be recorded under the position
“Differences from the currency translation”.
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