ONE ROOF

As in the prior year, the Consolidated Financial Statements in-
clude a total of five special-purpose securities investment
funds.
Six domestic and 33 foreign companies have been removed
from the consolidated group. These include two intra-Group
transfers in Germany in the form of one merger and one
passage of title by operation of law. Most of the foreign companies
removed from the consolidated group were in the
HOCHTIEF Asia Pacific division (21) and the HOCHTIEF Americas
division (11). An entity is generally added to or removed
from the consolidated group at the time the equity stake in the
entity is acquired or disposed of.
Fifty-seven affiliated companies not material to the Group’s finan-
cial position and results of operations were not consolidated
in the year under review. Their combined sales represented
less than one percent of consolidated sales.
Seventeen domestic and 158 foreign associates were accounted
for using the equity method. This number showed a net increase
of 34, with 40 companies added and six removed from the
category. Most of the companies added are project companies
in the HOCHTIEF Asia Pacific division (26) and the HOCHTIEF
Americas division (8). Those removed were in the HOCHTIEF
Americas division (3) and in the HOCHTIEF Europe division (3).
Due to their minor significance, a further 24 companies were
not accounted for using the equity method.
A total of EUR 16,745,000 was expended in 2009 under asset
deals (2008: EUR 47,476,000), for purchases of companies
consolidated for the first time and to increase existing shareholdings;
the expenditure was made in cash.
Acquisitions affected earnings and the balance sheet as fol-
lows:
(EUR thousand) 2009 2008
restated
Non-current assets – 23,703
Current assets excluding cash
and cash equivalents 404 32,448
Cash and cash equivalents – 758
Assets 404 56,909
Provisions 82 165
Other liabilities 86 27,950
Liabilities 168 28,115
Sales 396 53,040
Profit before taxes 41 2,231
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
Consolidation policies
The financial statements of domestic and international companies
included in these Consolidated Financial Statements
are prepared in accordance with uniform Group accounting
principles. Subsidiaries with a different reporting date generally
prepare interim financial statements as of the Group reporting
date. The main such subsidiary is the Leighton Group,
whose fiscal year ends June 30. All business combinations
(acquisitions) are accounted for using the purchase method.
Business combinations are measured at the acquisition date
by allocating the consideration given, plus any costs directly
attributable to the business combination, to the acquired
subsidiary’s net assets measured at fair value. All assets, liabilities
and contingent liabilities of the acquired subsidiary that
satisfy the recognition criteria are measured at full fair value
regardless of any minority interest. Intangible assets are recognized
separately from goodwill if they are separable from
the accounting entity or arise from contractual or other legal
rights. Any goodwill then left is recognized as an asset. Goodwill
is not amortized, but is tested instead for impairment losses
in accordance with IAS 36 on an annual basis and whenever
there are indications that it may be impaired. Negative goodwill
arising on initial measurement is recognized immediately in
income. On divestment, the carrying amount of a subsidiary’s
goodwill is taken into account when measuring disposal proceeds.
Goodwill increased by EUR 23,206,000 in the year under re-
view, from EUR 407,847,000 to EUR 431,053,000.
Income, expenses, receivables and liabilities between consoli-
dated companies are eliminated. Unrealized intercompany
profits and losses are eliminated unless they are of minor significance.
Any impairment losses recognized for consolidated
companies in their separate financial statements are reversed.
The same policies apply for equity-method investments.
These include the Group’s associates and jointly controlled
entities. Any goodwill increases the carrying amount of an investment.
Like other goodwill, goodwill on equity-method investments
is not amortized. Reductions in carrying amount
due to impairment are reported in the share of profits and
losses of equity-method associates and jointly controlled entities.
The financial statements of all equity-method investments
are prepared in accordance with uniform Group accounting
and valuation principles.
Annual Report 2009 135