SwissInfo

CONSOLIDATED FINANCIALSTATEMENTS
BarryCallebaut
Annual Report2010/11
Note 1
Note 18
Note 19
Note 24
Note 26
Acquisitions – Fair value measurement
Goodwill – Measurementofthe recoverable amounts of cash-generating units
Deferred tax assets and liabilities – Utilization of tax losses
Employeebenefitobligation – Measurementofdefined benefitobligations
Discontinued operations and assets held forsale and liabilities directly associated with
assets held forsale – Valuation of assets
Scope of consolidation/Subsidiaries
The consolidated financial statements of the Group include all the assets,liabilities,income
and expenses of Barry Callebaut AG and the companies which it controls. Control is presumed
to exist when acompany owns, either directly or indirectly, more than 50% of the
voting rights of acompany’ssharecapital or otherwise has the power to exercise control over
the financial and operating policies of asubsidiary so as to obtain the benefits from its activities.Non-controlling
interests are shown as acomponent of equity in the balance sheet and
the shareofthe net profitattributable to non-controlling interest is shown as acomponent of
the net profit for the period in the Consolidated Income Statement. Newly acquired companies
are consolidated from the date control is transferred (the effective date of acquisition),
using the acquisition method. Subsidiaries disposed of are included up to the effective date
of disposal.
All intragroup balances and unrealized gains and losses or income and expenses
arising from intragroup transactions are eliminated in preparing the consolidated financial
statements.Unrealized gains arising from transactions with associates and jointly controlled
entities are eliminated to the extent of the Group’s interest in the entity. Unrealized losses
are eliminated in the same way asunrealized gains, but only to the extent that there isno
evidence of impairment.
Purchases and disposals of non-controlling interest in subsidiaries
The Group applies the policy oftreating transactions with non-controlling interest equal to
transactions with equity owners of the Group. For purchases from non-controlling interest,
the difference between consideration paid and the relevant share acquired of the carrying
value of net assets of the subsidiary is recorded in equity.Gains or losses on disposal to noncontrolling
interest arealso recorded in equity.
Options over existing non-controlling interest
The Group accounts for written put options over existing non-controlling interest in derecognizing
the non-controlling interest and records instead of aliability to the extent of the
put option exercise price, discounted to the balance sheet date. Should the option expire
without being exercised by the minority shareholders,the liability is derecognized and noncontrolling
interest is recorded.
Investments in associates and jointventures
Associates arethose companies in which the Group has significant influence but not control.
This is normally presumed when the Group holds between 20% and 50% of the voting
power of another entity.Joint ventures arethose entities over whose activities the Group has
joint control, established by contractual agreement and requiring unanimous consent for
strategic financial and operating decisions.Associates and joint ventures are accounted for
using the equity method (equity-accounted investees) and arerecognized initially at cost.The
Group’sinvestment includes goodwill identified on acquisition, net of any impairment losses.
Theconsolidated financial statements include the Group’sshareofthe income and expenses
and equity movements of equity-accounted investees from the date that significant influence
or joint control commences until the date significant influence or joint control ceases.
71