THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

2.4.Consolidation Principles
The consolidated financial statements comprise the financial statements
of Symrise AG and its subsidiaries as at December 31,
2008, respectively.
The financial statements of the subsidiaries are prepared for the
same reporting date as that of the parent company using uniform
accounting policies. For this purpose, adjustments are made to
compensate for any differences in recognition and measurement
deriving from local accounting policies. All inter-company balances,
transactions and unrealized gains deriving from intra-group
transactions are eliminated. Unrealized losses deriving from intragroup
transactions are also eliminated unless Group acquisition
and production costs cannot be recovered in future.
Subsidiaries are fully consolidated from the date of acquisition, i.e.
from the date on which control is transferred to the Group. Inclusion
in the consolidated financial statements ceases at such time
as the parent company’s controlling influence ends.
Investments are accounted for using the equity method inasmuch
as Symrise does not hold a controlling interest but is still able to
exercise a significant influence over the business and financial policies
of these entities (“associates”). In July 2008, a 20% interest
was acquired in Therapeutic Peptides Inc., Baton Rouge, US. This
investment was accounted for using the equity method of accounting
in the consolidated financial statements as at December
31, 2008, for the first time.
The consolidated financial statements as at December 31, 2008,
includes 58 (2007: 55) Group companies, of which 11 (2007: 10)
are German and 47 (2007: 45) are foreign.
Fully consolidated
subsidiaries
Domestic
Foreign
Investments accounted for using
the equity method
Foreign
Total
Dec. 1, 2008
10
45
0
55
Additions
1
1
1
3
Disposals
0
0
0
0
Dec. 31, 2008
11
46
1
58
102 Annual Report 2008 Symrise AG