Annual report 2010 - plazacenters

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Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period
in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision
affects both current and future periods.
Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized
in the consolidated financial statements is included in the following notes:
• Notes 13, 41, 4 – classification and valuation of investment property.
• Note 11 – held to maturity investment.
• Notes 22, 23 – debentures at fair value through profit or loss.
• Note 10 – suspension of borrowing costs capitalization.
• Note 41– assessing control in business combination.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within
the next financial year are included in the following notes:
• Notes 10, 41 – key assumptions used in determining the net realizable value of trading properties.
• Note 13 – key assumptions used in valuation of investment property.
• Note 36 – provisions and contingencies.
• Note 27 – measurement of share-based payments.
• Note 16 – key assumption used in valuation of financial instruments (Swap).
The accounting policies set out in note 3 below have been applied consistently to all periods presented in these consolidated financial
statements, and have been applied consistently by Group entities, except as explained in note 2(e), which addresses changes in
accounting policies.
e. Changes in accounting policies
(i) Accounting for business combinations
From January 1, 2010 the Group has applied IFRS 3 Business Combinations (2008) in accounting for business combinations.
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control
is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from
its activities. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable.
Acquisitions on or after January 1, 2010.
For acquisitions on or after January 1, 2010, the Group measures goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognized amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less
• the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
Plaza Centers N.V. Annual report 201075