Annual Report 2010 - S&T

Foreword by the Management Board | Positioning and Markets | Investor Relations | Corporate Governance | Group Management Report | Consolidated Financial Statements | Service
Accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
1 Basis of preparation
The consolidated financial statements at 31 December 2010 were prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union (EU) and the applicable commercial law provisions of
§ 245a UGB.
They have been prepared under the presumption that the group will continue as a going concern and under the historical
cost convention, with the exception of financial assets and derivative financial instruments which are measured at fair
value. With respect to the subsidiaries S&T Deutschland GmbH, Germany, and S&T Schweiz Consulting AG,
Switzerland, the assumption of going concern bases was no longer justified. Accordingly these companies were
recognized at their liquidation value. Valuation differences mainly arose in the balance sheet items deferred tax assets
as well as non-current and current provisions (refer to Point 20 “Critical accounting estimates and assumptions –
valuation at fair value”.)
The preparation of financial statements in conformity with IFRS as adopted by the European Union requires the use of
certain estimates. It also requires management to exercise its judgment in the process of applying the group’s
accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements, are disclosed in item 20 ‘Critical Accounting Estimates
and Assumptions’ of the accounting policies.
The consolidated financial statements are prepared in thousands of euro (EUR ‘000 or TEUR). Calculations are based
on full amounts including not displayed digits and may cause calculation differences.
The various group companies maintain their books and other accounting records in accordance with local legal
requirements in the currency of the respective country in which they were incorporated and are registered. Adjustments
to these financial statements have been effected in order to achieve compliance with IFRS as adopted by the EU.
The consolidated financial statements were prepared by the Management Board on the undersigned date and released
for issue. The entity financial statements of the parent company, which have been included in the consolidated financial
statements after transition to the applicable accounting standards, will be presented to the Supervisory Board for review
and approval on 27 May 2011. The Supervisory Board and, assuming presentation of these financial statements at the
Annual General Meeting, the shareholders could alter these entity financial statements in a form that may also impact
the presentation in the consolidated financial statements.
The consolidated financial statements have been prepared applying those IFRS effective at the balance sheet date. The
International Accounting Standards Board (IASB) published a number of changes to existing standards as well as new
standards and interpretations mandatory for 2010. These standards should also be applied in the EU and concern the
following topics:
New and amended standards and interpretations adopted by the European Union and applied for the first time
in the fiscal year:
All pronouncements applicable for the first time (amendments of standards, new interpretations and amendments of
interpretations) and mandatory in the current fiscal year do not have any material impact on the group’s financial
statements.
The consolidated financial statements of of S&T S&T System System Integration Integration & Technology & Technology Distribution Distribution AG as AG of and as of for and the fiscal for the year fiscal ended year 31 ended December 31 December 2010
prepared
2010 prepared
in accordance
in accordance
with International
with International
Financial
Financial
Reporting
Reporting
Standards/IFRSs
Standards/IFRSs
as adopted
as adopted
by the
by
EU
the
and
EU
with
and
section
with
245a
section
(1)
245a
of the
(1)
Austrian
of the Austrian
Commercial
Code have been translated into English. In case of different interpretations, the German original is valid.
Commercial Code have been translated into English. In case of different interpretations, the German original is valid.
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