Engineering

3.6 Consolidated financial statements Notes to the consolidated financial statements
3.6 Consolidated financial statements Notes to the consolidated financial statements
On initial classification as held for sale, non-current assets are
recognized at the lower of the carrying amount and fair value less costs
to sell and depreciation and amortization ceases. A disposal group is
initially measured in line with the respective IFRS standards to
determine the carrying amount of the disposal group which is then
compared to the fair value less costs to sell of the group in order to
recognize the group at the lower of both amounts. Impairment losses
on initial classification as held for sale are included in profit or loss, as
are gains and losses on subsequent remeasurement, but not in excess
of the cumulative impairment loss.
Financial statement classification
Certain line items in the consolidated statement of income and on the
consolidated balance sheet have been combined. These items are
disclosed separately in the Notes to the consolidated financial
statements. Certain reclassifications have been made to the prior year
presentation to conform to that of the current year.
In general the Group classifies assets and liabilities as current when
they are expected to be realized or settled within twelve months after
the balance sheet date. Group companies that have operating cycles
longer than twelve months classify assets and liabilities as current if
they are expected to be realized within the company’s normal
operating cycle.
Use of estimates
The preparation of the Group consolidated financial statements
requires Management to make judgements, estimates and
assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the
period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision
affects both current and future periods.
Accounting estimates and judgements made by Management in the
application of IFRS that have a significant effect on the consolidated
financial statements are presented in Note 25.
Recently adopted accounting standards
In fiscal year 2010/2011, ThyssenKrupp adopted the following
standards, interpretations and amendments to already existing
standards:
In October 2009 the IASB issued an amendment to IAS 32 “Financial
Instruments: Presentation”. The amendment addresses the accounting
for rights, options and warrants issues that are denominated in a
currency other than the functional currency of the issuer. The
amendment is compulsory for fiscal years beginning on or after
February 01, 2010. The adoption of the amended standard did not
have a material impact on the Group’s consolidated financial
statements.
In June 2009 the IASB issued an amendment to IFRS 2 “Share-based
Payment – Group Cash-settled Share-based Payment Transactions”
that clarify the accounting for Group cash-settled share-based payment
transactions in the individual financial statements of the subsidiary.
Furthermore the amendment to IFRS 2 incorporates guidance
previously included in IFRIC 8 “Scope of IFRS 2” and IFRIC 11 “IFRS 2
– Group and Treasury Share Transactions”. The application of the
amended standard is compulsory for fiscal years beginning on or after
January 01, 2010. The adoption of the amended standard did not
have a material impact on the Group’s consolidated financial
statements.
In November 2008 the IFRIC issued IFRIC 17 “Distributions of Noncash
Assets to Owners”. The interpretation addresses the accounting
of distributions of assets other than cash to its owners. IFRIC 17 is
compulsory for fiscal years beginning after October 31, 2009. The
adoption of the interpretation did not have a material impact on the
Group’s consolidated financial statements.
In January 2009 the IFRIC issued IFRIC 18 “Transfers of Assets from
Customers”. IFRIC 18 clarifies the requirements of IFRSs for
agreements in which an entity receives from a customer an item of
property, plant and equipment that the entity must then either use to
connect the customer to a network or to provide the customer with
ongoing access to a supply of goods or services. The interpretation is
compulsory for fiscal years beginning after October 31, 2009. The
adoption of the interpretation did not have a material impact on the
Group’s consolidated financial statements.
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