Südzucker International Finance B. V. Südzucker AG ... - Xetra

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSConsolidated financial statementsI. Principles of preparationThe consolidated financial statements for 2002/03 of Südzucker AG and its subsidiaries have been prepared inaccordance with those standards issued by the International Accounting Standards Board (IASB) and interpretationsissued by the Standing Interpretation Committee (SIC) in force at February 28, 2003. The conditions set out in§ 292a of the German Commercial Code for exemption from preparation of consolidated financial statementsprepared in accordance with the German Commercial Code have been met.The significant differences between German accounting principles for consolidated financial statements and IASare as follows:- No recognition of internal expense provisions (e.g. maintenance provisions) as set out in IAS 37.- Requirement to recognise unrealised foreign currency gains as set out in IAS 21.- Requirement to recognise deferred income taxes using the liability method as set out in IAS 12.- Requirement to recognise certain financial instruments at fair values as set out in IAS 39.The financial statements of all significant consolidated domestic and foreign subsidiaries, or those subject tostatutory audit in accordance with local laws, have been audited by independent auditors, who have issuedunqualified audit opinions on those financial statements. Independent auditors have also confirmed the correctnessof the adjustments from financial statements prepared in accordance with local accounting standards to IASfinancial statements prepared in accordance with group guidelines.II. Consolidation principles1. Companies included in consolidationIn addition to Südzucker AG, all domestic and foreign subsidiaries in which Südzucker AG has direct or indirectfinancial control and which are not immaterial are fully consolidated in the consolidated financial statements.117 companies (2001/02: 115) were included in the consolidated financial statements for the year endedFebruary 28, 2003. 6 companies have been included in the consolidated financial statements for the first time.3 companies were merged in 2002/03 and one company is no longer part of the group.F-12