Annual Report 2002 - Agfa

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Significant accounting policies
(a) Statement of compliance
Agfa-Gevaert N.V. (“the Company”) is a company domiciled in Belgium.
The consolidated financial statements of the Company comprise the Company and
its subsidiaries (together referred to as the “Group”) and the Group’s interests in
associated entities. The consolidated financial statements were authorized for issue
by the Board of Directors on March 25, 2003.
The consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRSs) issued by the International
Accounting Standards Board (IASB) and with the Standing Interpretations issued by
the International Financial Reporting Interpretations Committee (IFRIC) of the
IASB, as in effect at the closing date. They comply, in all material aspects, with the
7 th European Union’s Directives on consolidation of financial statements.
The application by the Company of the IFRSs, instead of Belgian Accounting
Standards, has been approved by the Banking and Finance Commission
on July 6, 1999.
(b) Basis of preparation
The consolidated financial statements are presented in Euro, rounded to
the nearest million.
The consolidated financial statements are prepared on the historical cost basis
except that the following assets and liabilities are stated at their fair value:
derivative financial instruments and investments classified as available-for-sale.
Recognized assets and liabilities that are hedged are stated at fair value in respect of
the risk that is hedged.
The accounting policies have been consistently applied by Group enterprises and are
consistent with those used in the previous year.
(c) Consolidation principles
Subsidiaries
Subsidiaries are those enterprises controlled by the Company. Control exists when
the Company has the power, directly or indirectly, to govern the financial and
operating policies of an enterprise so as to obtain benefits from its activities.
The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control effectively commences until the date that
control effectively ceases.
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Agfa annual report 2002