Every day counts - Deutsche Beteiligungs AG

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C. Principles of consolidation
The consolidated financial statements of Deutsche Beteiligungs AG were drawn up
and presented in accordance with the valid standards of the German Commercial Code,
using the accounting and valuation principles of the parent company.
Basis of presentation
The consolidated financial statements are based on the individual annual accounts of
the consolidated companies, which are drawn up according to standardized accounting
and valuation policies. For subsidiaries whose balance sheet date is not identical to that
of the Group, consolidation was based on interim accounts.
The capital consolidation of the subsidiaries has been performed using the fair value
purchase method by revaluing the assets and debt of consolidated subsidiaries and subsequently
matching the equity share of the subsidiary against the parent company’s
investment book value. Asset-side balancing items exhibiting the nature of goodwill are
offset against retained earnings. Liability-side balancing items relate to realized earnings
and are taken to retained earnings.
Sales, expenditures and earnings as well as all receivables and liabilities from intercompany
transactions have been eliminated.
Principles of accounting
The profit and loss account has been prepared using the total expenditure format. To
provide for the special circumstances governing the private equity business, the legallyrequired
structure of the profit and loss account was modified according to Article 265,
section 6 of the German Commercial Code to include the positions “Gains from investment
disposals” and “Losses from investment disposals.”
For the sake of clarity and in compliance with Article 265, section 7, No. 2 of the
German Commercial Code, individual positions in the profit and loss account have been
combined; detailed disclosures are contained in the notes.
“Gains from investment disposals” discloses the net proceeds from realized revenue
less the book value.
Contained under “Losses from investment disposals” are the net losses, insofar as
realized revenue is less than the book value.
For a better overview, the legally-required information and commentary on individual
items in the balance sheet and the profit and loss account, as well as the commentary
which may either be contained in the balance sheet, the profit and loss account, or the
notes to the financial statements, are all shown in the notes to the financial statements.