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

Consolidated financial statementsProportionate consolidation was used to include HUNGRANA Kft., Szabadegyhaza, Hungary (in which AGRANAZucker und Stärke AG, Vienna has a 50 % holding) and AIH Agrar-Industrie-Holding GmbH, Mannheim (in whichSüdzucker AG, Mannheim/Ochsenfurt has a 50 % holding).The consolidated financial statements include non-current assets of D 19.4 million, current assets of D 28.8 million,shareholders' equity of D 29.0 million and provisions and liabilities of D 18.7 million from the proportionateconsolidation. The consolidated statement of income includes sales of D 69.2 million and profits for the year ofD 22.7 million from the proportionately consolidated companies.The equity method was used for 5 (8) companies. Due to their overall insignificance or the lack of significantinfluence to participate in the financial and operating policy decisions of the investees as set out in IAS 28,17 investments were not included at equity and were recognised in the consolidated financial statements at cost.2. Consolidation methodsThe equity consolidation has been made using the purchase method, under which acquisition cost is set off againstthe relevant share of the subsidiary company's equity at the time of acquisition. Any difference has been allocatedto assets insofar as their market values differed from book values at that time. Any remaining difference (goodwill)is initially included in intangible assets and is amortised straight-line over its probable useful life of 20 years as setout in IAS 22. Investments in non-consolidated affiliated companies are stated at acquisition cost. Investments inassociated companies are included in the consolidated financial statements using the equity method (purchasemethod) as from their date of their acquisition or initial consolidation.Intercompany sales, expenses and income and all receivables, liabilities and provisions between consolidated entitieshave been eliminated. Intercompany profits included in non-current assets and inventories and arising fromintercompany transfers are eliminated.During 2002/03 the financial year-ends of those companies located in eastern Europe and which were included inthe consolidated financial statements as set out in IAS 27 with financial year-ends (December 31) differing fromthe Südzucker AG financial year-end (February 28), were changed to February 28. They were included with financialstatements covering fourteen months (January 1, 2002 through February 28, 2003).F-14