Financial Report

AFG
Annual Report
2011
Consolidated Financial Statements AFG Arbonia-Forster-Group
113
Notes to the Consolidated Financial Statements
A Accounting principles
1 General information
AFG Arbonia-Forster-Group (AFG) has leading positions in the European construction
supply industry and in selected technology markets. AFG is divided into five
main divisions, namely Heating Technology and Sanitary Equipment, Kitchens and
Refrigeration, Windows and Doors, Steel Technology and Surface Technology.
Manufacturing plants are located in Switzerland, Germany, the Czech Republic,
France, the UK, Slovakia, the United States and China (under construction). AFG
owns major brands such as Kermi, Arbonia, Prolux, Aqualux, Forster Kitchens,
Forster Refrigeration, Warendorf, Piatti, EgoKiefer, RWD Schlatter, Slovaktual,
Forster Precision Steel Tubes, Forster Profile Systems and STI|Hartchrom and possesses
a strong position in its home markets in Switzerland and Germany. Taking
into consideration the economic trend, international activities especially in the
Middle and Far East as well as in Eastern Europe are gaining importance for the
Group. With around 50 production and distribution companies, agencies and
partners of its own, AFG is represented in over 70 countries worldwide.
The ultimate parent company, AFG Arbonia-Forster-Holding AG is a corporation
organised under Swiss law incorporated and domiciled at Amriswilerstrasse 50,
CH-9320 Arbon (Canton Thurgau). AFG Arbonia-Forster-Holding AG is listed on
the SIX Swiss Exchange in Zurich under the valor number 11024060 / ISIN
CH0110240600.
These consolidated financial statements have been approved for issue by the
Board of Directors of AFG Arbonia-Forster-Holding AG on 16 February 2012 and
require approval from the Annual General Meeting on 20 April 2012. The publication
of the consolidated financial statements occurred on 6 March 2012 at the
media and analyst conference.
2 General principles and basis of preparation
The consolidated financial statements of AFG have been prepared in accordance
with International Financial Reporting Standards (IFRS), issued by the International
Accounting Standards Board (IASB).
The preparation of financial statements in accordance with IFRS requires the
use of certain critical accounting estimates and assumptions. It also requires management
to exercise its judgement in the process of applying the Group's accounting
policies. Areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the consolidated financial
statements, are disclosed in note 30.
Amendments to significant published standards and interpretations
In 2011, AFG adopted the following amended standards and new or amended
interpretations, which were mandatory for annual periods beginning on or after
1 January 2011:
– Amendments to IAS 32 “Financial instruments: disclosure” – classification of
rights issues
– Amendment to IFRIC 14 “The limit on a defined benefit asset, minimum
funding requirements and their interaction” – prepayments of minimum
funding requirements
– IFRIC 19 “Extinguishing financial liabilities with equity instruments”
– Annual improvement project to IFRS 2010
The amendment of IFRIC 14 was already applied when this interpretation first was
adopted by AFG in 2008. Employer's contribution reserves feature a real economic
benefit by way of reductions in future contributions and as a consequence
AFG continued to fully capitalise those contributions. The adoption of the other
standards and interpretations did not significantly affect the Group's financial
statements.