annual Report 2009 - STRATEC Biomedical AG

Report of the board of Management
Report of the supervisory board
THE share
Corporate Governance
Group Management report
Consolidated financial statements
Service
Amendment to IAS 23 – Components of borrowing costs
IAS 23 “Borrowing Costs” has been amended to the extent that in the list of possible components of borrowing costs
provided in IAS 23, Paragraphs 6 (a)-(c) have been replaced by a reference to the calculation of interest expenses
using the effective interest rate method pursuant to IAS 39 “Financial Instruments: Recognition and Measurement”.
This has therefore eliminated any potential inconsistencies between the calculation of borrowing costs under IAS 23
and IAS 39 respectively. With regard to the potential implications of this amendment for EBIT, net financial expenses
and net income for the period, reference is made to the comments provided on the general implications of the IAS 23
amendment.
Voluntary premature application has been made of the following accounting standards already adopted by the IASB but
not yet requiring mandatory application:
• IFRS 3 “Business Combinations”
The principal amendments in the revised version of IFRS 3 relate in particular to the introduction of a transaction-bytransaction
option when measuring non-controlling interests between recognition at the prorated share of identifiable
net assets (purchased goodwill method) and application of the full goodwill method, which requires recognition of all
of the goodwill at the company acquired, including the share attributable to non-controlling interests. IFRS 3 (revised
2008) requires first-time application in financial years beginning on or after July 1, 2009. The transitional regulations
envisage prospective application of the new requirement. For companies whose financial year corresponds to the
calendar year, therefore, this means that IFRS 3 (revised 2008) requires application for all business combinations with
acquisition dates on or after January 1, 2010.
• IAS 27 “Separate and Consolidated Financial Statements”
The amendments to IAS 27 primarily relate to the accounting treatment of non-controlling interests (minority interests)
which will in future participate in full in any losses incurred by the Group, as well as to transactions leading to
a loss of control at a subsidiary, whose effects are to be recognized through profit or loss. The effects of disposals
of shares not leading to a loss of control, by contrast, must be recognized in equity. IAS 27 (revised 2008) requires
first-time application in financial years beginning on or after July 1, 2009. The transitional regulations, which basically
require retrospective application of the amendments introduced, nevertheless provide for prospective application of
the specific amendments outlined above. Assets and liabilities resulting from such transactions executed prior to the
date of initial application of the new standard are therefore not subject to amendment.
The premature application of IFRS 3 and IAS 27 had implications to the extent that the transaction costs incurred in
connection with the acquisition of the subsidiary Invitek Gesellschaft für Biotechnik & Biodesign mbH, Berlin, in the
2009 financial year (including legal and advisory expenses) were not included in the consideration thereby assigned,
but were rather recognized as expenses. The volume of transaction costs thereby expensed is of immaterial significance
overall.
The mandatory recognition of conditional consideration granted upon acquisition may in principle result in the liability
thereby recognized being subsequently measured through profit or loss in future financial years. However, STRATEC AG
does not expect this to have any significant implications in future financial years, as the reference date for the respective
conditions was December 31, 2009.
stratec Annual Report 2009
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