THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

Notes to the Consolidated
Financial Statements
1. GENERAL INFORMATION
Symrise Aktiengesellschaft (Symrise AG) is a stock corporation
incorporated under German law and principally
produces, markets and sells flavors, fragrances, aroma
chemicals and cosmetic ingredients. The registered office
of the Group is at Muehlenfeldstraße 1, 37603 Holzminden,
Germany (commercial register: District Court of
Hildesheim; HRB No. 200436).
Symrise AG shares are authorized for trading on the official
market of the Frankfurt Stock Exchange and are listed
in the Prime Standard segment of the MDAX.
The consolidated financial statements of Symrise AG
(hereinafter referred to as “the Company” or “the Group”)
for the fiscal year ending December 31, 2008, were
approved for publication by the Executive Board on
February 18, 2009.
The consolidated financial statements of Symrise AG have
been prepared in accordance with the International Financial
Reporting Standards (IFRS) of the International Accounting
Standards Board (IASB), London as well as the
interpretations of the International Financial Reporting Interpretations
Committee (IFRIC) as adopted by the European
Union and the supplementary commercial law
provisions of Section 315 a (1) of the HGB [“Handelsgesetzbuch”
or German Commercial Code] that were valid at
the balance sheet date.
2. ACCOUNTING POLICIES
2.1.Basis of Preparation of the
Financial Statements
The consolidated financial statements are prepared on a
historical cost basis with the exception of derivative financial
instruments and available for sale financial instruments
that are measured at fair value.
The consolidated financial statements are presented in euros
as this is the Group’s functional currency. Unless otherwise
indicated, all financial information presented in euros has
been rounded to the nearest thousand (T€). The individual financial
statements of the companies included in the consolidation
were prepared at the balance sheet reporting date
used for preparation of the consolidated financial statements.
Annual Report 2008 Symrise AG 99
The preparation of the consolidated financial statements
in accordance with International Financial Reporting Standards
requires the Executive Board to make judgments,
estimates and assumptions that affect the application of
accounting policies and amounts reported as assets, liabilities,
income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are subject to review
on an ongoing basis. Changes in accounting estimates
are recognized in the accounting period in which
the estimate is changed and in any future reporting periods
affected.
2.2. Changes to Accounting Policies
The accounting policies adopted are consistent with those
applied in the previous fiscal year except that the Group
has adopted those new or revised standards or interpretations
that are prescribed for the fiscal year. The application
of the new or revised IFRS standards and interpretations
did not have any effect on the consolidated
financial statements. However, they did lead to additional
disclosures.
Changes in IAS 39 and IFRS 7 (“IAS 39/IFRS 7 – Reclassification
of Financial Instruments”) in given circumstances
permit the reclassification of certain financial
assets from the category “at fair value through profit or loss”
to another measurement category. Under certain circumstances,
the changes also allow financial assets included in
the category “available for sale” to be reclassified to the category
“loans and receivables.” IFRS 7 was correspondingly
expanded to cater for reclassifications made under the terms
of these new provisions. The changes became mandatory
on July 1, 2008. No impacts to the 2008 consolidated financial
statements resulted from these changes.
IFRIC 11 (“IFRS 2 – Group and Treasury Share Transactions”)
regulates share-based compensation for a payment
transaction in which an entity receives, or is granted,
goods or services in exchange for its equity instruments.
IFRIC 11 became mandatory with effect from January 1,
2008, onwards. The changes have no significant impact
on the consolidated financial statements of Symrise AG.
IFRIC 14 (IAS 19 “The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their Interaction”)
provides direction as to when refunds or re-
Notes