2009 - Jaarverslag

The new principle for financial reporting in relation to notes on this subject is explained in further detail innote 31. Since the amended reporting only has consequences for the presentation and notes relating to theresults, the earnings per share remain unchanged. This new principle for financial reporting has not led to anychange in the segments qualifying as reporting segments under IFRS 8.Presentation of the financial statementsThe Group applies the revised standard IAS 1 Presentation of Financial Statements (2007), which has been inforce since 1 January 2009. The Group accordingly presents all changes in equity relating to shareholders intheir capacity as shareholders in the consolidated statement of changes in equity, while all changes inshareholders equity which do not relate to shareholders in their capacity as shareholders are recognised in theconsolidated statement of comprehensive income.Comparative information has been adjusted so that it also conforms to the revised standard. Since this changeof system only affects aspects relating to the presentation and notes to the financial statements, it has noeffect on earnings per share.3 PRINCIPLES FOR THE PREPARATION OF THE FINANCIAL STATEMENTSThe financial statements are presented in millions of euros (the euro being the Company’s functional currency)unless stated otherwise. The financial statements have been prepared on the basis of historical cost, except forthe following material balance sheet items, which are valued at fair value: derivatives and financial instrumentsheld for trading purposes.In preparing the financial statements, the Executive Board has used estimates and assumptions which affectthe amounts stated in the consolidated financial statements (see note 57). Changes in estimates andassumptions may affect amounts reported in future years. The actual results may differ from such estimates.The accounting principles set out below have been applied consistently by the Group’s operating companies andjoint ventures for the periods presented in these consolidated financial statements. Certain comparativeinformation has been adjusted for the sake of comparability.4 CONSOLIDATION PRINCIPLES4.1 Operating companiesOperating companies are undertakings in which the company directly and/or indirectly has a controlling interest.The assessment of whether there is a controlling interest takes account of potential voting rights that areexercisable at the time. The company has a direct or indirect controlling interest if it can determine the financialand operational policy of a company in such a way that it can derive a benefit from the activities of thatcompany. The financial statements of operating companies are included in the consolidated financial statementsfrom the first to the last date on which control is exercised. Minority interests in the Group result and theshareholders equity of the Group are stated separately.Royal Ten Cate Annual Report 2009 91