Daimler Annual Report 2011 - Alle jaarverslagen

7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Subsidiaries, whose business is non-active or of low volume
and that are not material for the Group and the fair presen ­
tation of financial position, liquidity and capital resources, and
profitability are generally not consolidated. The aggregate
balance sheet totals of these subsidiaries amount to approximately
1% of the Group’s balance sheet total; the aggregate
revenues and the aggregate profit/loss before income taxes
amount to approximately 1% of Group revenue and profit
before income taxes.
Equity investments in which Daimler has the ability to exercise
significant influence over the financial and operating policies
of the investee (associated companies) and entities over whose
activities Daimler has joint control with a partner (joint
ventures) are generally included in the consolidated financial
statements using the equity method.
Table 7.06 shows the composition of the Group.
Business combinations are accounted for using the purchase
method.
Changes in equity interests in Group subsidiaries that reduce
or increase Daimler’s percentage ownership without loss
of control are accounted for as an equity transaction between
owners.
As an additional funding source, Daimler transfers finance
receivables, in particular receivables from the leasing and
automotive business, to special purpose entities. Daimler thereby
principally retains significant risks of the transferred receivables.
According to IAS 27 Consolidated and Separate Financial
Statements and the Standing Interpretations Committee
(SIC) Interpretation 12 Consolidation – Special Purpose Entities,
these special purpose entities have to be consolidated
by the transferor. The transferred financial assets remain in
Daimler’s consolidated statement of financial position.
Daimler assesses at each reporting date whether objective
evidence of impairment is present with regard to its investments
in associated companies and joint ventures. If such
indication exists, the Group determines the impairment.
If the carrying amount exceeds the recoverable amount of
an investment, the carrying amount is reduced to the
recoverable amount. The recoverable amount is the higher
of fair value less costs to sell and value in use. An impair ­
ment loss or the reversal of such a loss is recognized in the
statement of income in the line item “Share of profit/loss
from investments accounted for using the equity method, net.”
Income and expenses from the sale of investments accounted
for using the equity method are shown in the same line item.
7.06
Composition of the Group
2011 2010
Consolidated subsidiaries
Germany 74 72
International 286 276
Subsidiaries accounted for at cost
Germany 46 47
International 80 86
Subsidiaries accounted for
using the equity method
Germany 1 1
International 4 5
Associated companies and joint ventures
Germany 20 23
International 46 50
557 560
Investments in associated companies and joint ventures.
Associated companies and joint ventures are generally
accounted for using the equity method.
At the acquisition date, the excess of the cost of Daimler’s
initial investment in an associate or joint venture and the share
of the net fair value of the associate’s or joint venture’s
identifiable assets and liabilities is recognized as investor level
goodwill and is included in the carrying amount of the investment
accounted for using the equity method. Step acquisitions,
through which significant influence or joint control is obtained
for the first time, are generally accounted for in accordance with
IFRS 3 Business Combinations, which means the previously
held equity interest is remeasured at its acquisition-date fair
value; resulting gains and losses are recognized in profit
or loss. In case an additional ownership interest in an existing
associated company is acquired while significant influence
is still maintained, goodwill is calculated only to the incremental
interest acquired. The pre-existing investment is not
measured anew at fair value.
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