Annual report 2010 - plazacenters

Financial statements
Notes to the consolidated financial statements
Note 1 – Principal activities and ownership
Plaza Centers N.V. (“the Company”) was incorporated and is registered in The Netherlands. The Company’s registered office is at
Keizersgracht 241, Amsterdam, The Netherlands. The Company conducts its activities in the field of establishing, operating and selling
of shopping and entertainment centers, as well as other mixed-use projects (retail, office, residential) in Central and Eastern Europe,
India, and, starting 2010, also in the USA, through the acquisition of EDT retail trust (“EDT” or “the Trust”) (refer also to note 37).
The consolidated financial statements for each of the periods presented comprise the Company and its subsidiaries (together referred
to as the “Group”) and the Group’s interest in associates and jointly controlled entities.
The Company’s shares are traded on the Official List of the London Stock Exchange (“LSE”) and starting October 19, 2007, the Company’s
shares are also listed in the Warsaw Stock Exchange (“WSE”).
The Company’s immediate parent company is Elbit Ultrasound B.V. (“EUL”), which holds 62.4% of the Company’s shares, as of the end of
the reporting period. The ultimate parent company is Elbit Imaging Limited (“EI”), which is indirectly controlled by Mr. Mordechay Zisser.
For the list of the Group entities, refer to note 42.
Note 2 – Basis of preparation
a. Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”),
as adopted by the European Union (“EU”).
These consolidated financial statements are not intended for statutory filing purposes. The Company is required to file consolidated
financial statements prepared in accordance with The Netherlands Civil Code. At the date of approving these financial statements
the Company had not yet prepared consolidated financial statements for the year ended December 31, 2010 in accordance with
The Netherlands Civil Code.
The consolidated financial statements were authorized for issue by the Board of Directors on March 22, 2011.
b. Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the
statement of the financial position:
• Investment property are measured at fair value;
• Liabilities for cash-settled share-based payment arrangements are measured at fair value;
• Available for sale financial assets are measured at fair value;
• Derivative financial instruments are measured at fair value; and
• Financial instruments at fair value through profit or loss are measured at fair value.
c. Functional and presentation currency
These consolidated financial statements are presented in EURO, which is the Company’s functional currency. All financial information
presented in EURO has been rounded to the nearest thousand, unless otherwise indicated.
d. Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and
expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
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Plaza Centers N.V. Annual report 2010