Annual report 20108.31 MB - Boskalis

Financial statements 2010Explanatory notes to the consolidated financial statements1. GeneralRoyal Boskalis Westminster N.V. is a leadingglobal services provider operating in the dredging,maritime infrastructure and maritime servicessectors. Royal Boskalis Westminster N.V. (the‘company’) has its registered office in Sliedrecht,the Netherlands, and its head office is located inPapendrecht, the Netherlands. The company is apublic limited company listed on the NYSE EuronextAmsterdam stock exchange. The consolidatedfinancial statements of Royal Boskalis WestminsterN.V. for 2010 include the company and groupcompanies (hereinafter referred to jointly as the‘Group’ and individually as the ‘Group entities’) andthe interests of the Group in associated companiesand entities over which it has joint control.The consolidated financial statements wereprepared by the Board of Management and havebeen signed on March 16, 2011. The 2010 financialstatements will be submitted for approval tothe Annual General Meeting of Shareholders ofMay 12, 2011.2. Compliance with International FinancialReporting Standards2.1 Compliance statementThe consolidated financial statements and theaccompanying explanatory notes have beenprepared in accordance with the InternationalFinancial Reporting Standards (IFRS), as adoptedby the European Union, and with Part 9 of Book 2 ofthe Netherlands Civil Code.2.2 Amendments to the principles of financialreportingWith effect from January 1, 2010 the Group hasamended the principles of financial reporting in thefollowing areas:• Accounting for business combinations• Accounting for acquisitions of non-controllinginterests;Accounting for business combinationsFrom 1 January 2010 the Group has applied IFRS 3Business Combinations (revised) in accounting forbusiness combinations. The change in accountingpolicy has been applied prospectively and has hadan effect of € 0.1 million negative on net groupprofit (see also note 4).Business combinations are accounted for using theacquisition method as at the acquisition date, whichis the date on which control is transferred to theGroup. Control is the power to govern the financialand operating policies of an entity so as to obtainbenefits from its activities. In assessing control,the Group takes into consideration potential votingrights that currently are exercisable.Acquisitions on or after 1 January 2010For acquisitions on or after 1 January 2010, theGroup measures goodwill at the acquisition date as:• the fair value of the consideration transferred;plus• the recognised amount of any non-controllinginterests in the acquiree; plus• if the business combination is achieved instages, the fair value of the existing equityinterest in the acquiree; less• the net recognised amount (generally fairvalue) of the identifiable assets acquired andliabilities assumed.When the excess is negative, a bargain purchasegain is recognised immediately in profit or loss.The consideration transferred does not includeamounts related to the settlement of preexistingrelationships. Such amounts are generallyrecognised in profit or loss.Costs related to the acquisition, other thanthose associated with the issue of debt or equitysecurities, that the Group incurs in connection witha business combination are expensed as incurred.Any contingent consideration payable is recognisedat fair value at the acquisition date. If the contingentconsideration is classified as equity, it is notremeasured and settlement is accounted forwithin equity. Otherwise, subsequent changes tothe fair value of the contingent consideration arerecognised in profit or loss.Acquisitions between 1 January 2004 and1 January 2010For acquisitions between 1 January 2004 and 1January 2010, goodwill represents the excess ofthe cost of the acquisition over the Group’s interestin the recognised amount (generally fair value) of74 Annual Report 2010