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Consolidated Financial Statements
and effect of potential voting rights that can currently be exercised or converted are
taken into account, where necessary. Subsidiaries are always included in the consolidated
financial statements (full consolidation) from the time at which control of the company is
transferred to the Group. They are deconsolidated at the time at which this control ends.
The accounting of acquired subsidiaries is performed on the basis of the purchase
method. The acquisition costs of the purchase correspond to the fair value of the assets,
the equity instruments issued and the liability generated or assumed at the time of the
transaction (»Date of Exchange«) plus the costs that can be directly attributed to the
purchase. Any assets, liabilities and contingent liabilities identified in the course of a
company merger are valued, during initial consolidation, at their fair values on the date of
purchase,irrespective of the volume of minority shares in existence. The positive difference
between the acquisition costs of the purchase and the share of the Group in the net
assets to be valued at the fair value is reported as goodwill. If the acquisition costs are
lower than the net assets valued at the fair value of the purchased subsidiary, the difference
is recorded directly in the consolidated profit and loss statement, after further
examination. The shares of the minority shareholders are reported at their corresponding
share of the assets and liabilities that are valued at the fair values.
The earnings of the subsidiaries acquired or disposed of in the course of the year are
included in the consolidated profit and loss statement,in accordance with their date of
acquisition or disposal.
Group-internal transactions, account balances and unrealized profits or losses from transactions
between group companies are eliminated. Unrealized losses are also eliminated
unless the transaction indicates an impairment of the transferred asset. If the fixed
assets and inventories contain assets from group-internal deliveries, corresponding
interim profits are also eliminated.
The annual financial statements of the companies included in the consolidated financial
statements are drawn up or reconciled in line with IFRS, in accordance with standard
accounting and valuation principles. The accounting and valuation methods of subsidiaries
were amended, if necessary,to guarantee uniform accounting across the Group.
Any shares in the consolidated equity and in the consolidated annual result that relate to
minority shareholders are shown separately from the shares relating to the parent
company.
The consolidated financial statements as per 31 December 2006 include the Company and
all subsidiaries in which the Company holds the majority of voting rights, either directly
or indirectly,or in respect of which the company exerts a controlling influence. Overall,
the consolidation group includes VBH Holding AG itself,three domestic companies and
52 foreign companies. Consolidation of other group companies was not carried out as,
even taken together,they are of minor importance to the Group.
It is the first time that the following companies were included in the consolidated
financial statements in accordance with IFRS.
46 Annual report 2006 VBH Holding AG