measure and monitor the processes and report results ... - Refresco.de
measure and monitor the processes and report results ... - Refresco.de
measure and monitor the processes and report results ... - Refresco.de
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Financial review 2010<br />
lease payments ma<strong>de</strong> un<strong>de</strong>r finance leases are apportioned<br />
between <strong>the</strong> finance expense <strong>and</strong> <strong>the</strong> reduction of <strong>the</strong><br />
outst<strong>and</strong>ing liability. The finance expense is allocated to each<br />
period of <strong>the</strong> lease term so as to produce a constant<br />
periodic rate of interest on <strong>the</strong> remaining balance of <strong>the</strong><br />
liability. Contingent lease payments are accounted for by<br />
revising <strong>the</strong> minimum lease payments over <strong>the</strong> remaining term<br />
of <strong>the</strong> lease when <strong>the</strong> lease adjustment is confirmed.<br />
2.17 Finance income <strong>and</strong> expense<br />
Finance income comprises interest income on bank <strong>de</strong>posits<br />
<strong>and</strong> gains on hedging instruments that are recognized in profit<br />
or loss. Interest income is recognized in profit or loss as it<br />
accrues, using <strong>the</strong> effective interest method. Finance expense<br />
comprises interest expense on borrowings, <strong>the</strong> unwinding<br />
of discount on provisions <strong>and</strong> profit <strong>and</strong> losses on interest<br />
hedging instruments that are recognized in profit or loss.<br />
2.18 Income tax<br />
Income tax expense comprises current <strong>and</strong> <strong>de</strong>ferred tax.<br />
Income tax expense is recognized in profit or loss except<br />
to <strong>the</strong> extent that it relates to items recognized in o<strong>the</strong>r<br />
comprehensive income in which case <strong>the</strong> income tax expense<br />
is also recognized in o<strong>the</strong>r comprehensive income.<br />
Current tax is <strong>the</strong> income tax expected to be payable on <strong>the</strong><br />
taxable profit for <strong>the</strong> year, using tax rates enacted or<br />
substantively enacted at <strong>the</strong> <strong>report</strong>ing date, toge<strong>the</strong>r with any<br />
adjustment to tax payable in respect of previous years.<br />
Deferred tax is recognized using <strong>the</strong> balance sheet method,<br />
providing for temporary differences between <strong>the</strong> carrying<br />
amounts of assets <strong>and</strong> liabilities for financial <strong>report</strong>ing purposes<br />
<strong>and</strong> <strong>the</strong> amounts used for taxation purposes. In addition,<br />
<strong>de</strong>ferred tax is not recognized arising on <strong>the</strong> initial recognition<br />
of goodwill. Deferred tax is <strong>measure</strong>d at <strong>the</strong> tax rates that<br />
are expected to be applied to temporary differences in <strong>the</strong><br />
<strong>report</strong>ing period <strong>the</strong>y reverse, based on <strong>the</strong> laws that have<br />
been enacted or substantively enacted by <strong>the</strong> <strong>report</strong>ing date.<br />
Deferred tax assets <strong>and</strong> liabilities are offset:<br />
•<br />
•<br />
if <strong>the</strong>re is a legally enforceable right to offset current tax<br />
liabilities <strong>and</strong> assets, <strong>and</strong><br />
<strong>the</strong>y relate to income taxes levied by <strong>the</strong> same tax<br />
authority on <strong>the</strong> same taxable entity or on different<br />
taxable entities which intend to settle current tax<br />
liabilities <strong>and</strong> assets on a net basis or <strong>the</strong> tax assets<br />
<strong>and</strong> liabilities of which will be realized simultaneously.<br />
A <strong>de</strong>ferred tax asset is recognized to <strong>the</strong> extent that it is<br />
probable that future taxable profits will be available against<br />
which <strong>the</strong> temporary difference can be utilized. Deferred tax<br />
assets are reviewed at each <strong>report</strong>ing date <strong>and</strong> are reduced<br />
to <strong>the</strong> extent that it is no longer probable that <strong>the</strong> related tax<br />
benefit will be realized.<br />
2.19 New st<strong>and</strong>ards <strong>and</strong> interpretations not yet adopted<br />
A number of new st<strong>and</strong>ards, amendments to st<strong>and</strong>ards <strong>and</strong><br />
interpretations are not yet effective for <strong>the</strong> year en<strong>de</strong>d<br />
December 31, 2010 <strong>and</strong> have not been applied in preparing<br />
<strong>the</strong>se consolidated financial statements. As of 2010 <strong>the</strong> Group<br />
has implemented revised IFRS 3.<br />
Revised IFRS 3 Business Combinations establishes a fair value<br />
<strong>measure</strong>ment principle for recognizing <strong>and</strong> measuring all assets<br />
acquired <strong>and</strong> liabilities assumed, including contingent<br />
consi<strong>de</strong>ration, in a business combination. Revised IFRS 3<br />
introduces <strong>the</strong> term noncontrolling interest (formerly minority<br />
interest) <strong>and</strong> permits an acquirer to recognize noncontrolling<br />
interests at its ei<strong>the</strong>r proportionate interest in <strong>the</strong> fair value<br />
of <strong>the</strong> i<strong>de</strong>ntifiable assets <strong>and</strong> liabilities of <strong>the</strong> acquiree or at<br />
fair value. The revised st<strong>and</strong>ard also modifies <strong>the</strong> <strong>de</strong>finition of<br />
a business combination to focus on control, <strong>and</strong> modifies <strong>the</strong><br />
<strong>de</strong>finition of a business to clarify that it can inclu<strong>de</strong> a set of<br />
activities <strong>and</strong> assets which, while not currently being operated<br />
as a business, is capable of operating as a business. It incorporates<br />
<strong>the</strong> following changes that are likely to be relevant to <strong>the</strong><br />
operations of <strong>the</strong> Group: