Annual Report 2001 - KSPG AG

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Consolidated financial statements 2001 of Kolbenschmidt Pierburg AG
Notes
Accounting principles
(2) Transition to IAS By rebasing the primary accounting
system on IAS, international comparability
of Kolbenschmidt Pierburg AG’s
consolidated financial statements
and other financial information about
the Group has been enhanced.
Reconciliation
of equity to IAS
€million
The changeover to IAS has been based
on the assumption that the IAS had
The equity adjustments are mainly predicated on the following material facts:
always been applied (SIC-8). The differences
from restatements resulting
from the Jan. 1, 2000 opening balances
were recognized in equity only, to
the debit or credit of the other reserves
and the minority interests. The synopsis
below summarizes the reconciliation
of equity as of Dec. 31, 1999 (HGB),
to equity as of Jan. 1, 2000 (IAS).
Total equity (incl. minority interests) acc. to HGB at 12-31-1999 263.2
Goodwill 35.0
Tangible assets 56.8
Current assets 9.0
Untaxed/special reserves 11.2
Accruals for pension and similar obligations (50.6)
Other accruals 2.0
Income taxes 2.2
Sundry 6.7
Total equity (incl. minority interests) acc. to IAS at 1-1-2000 * 335.5
* IAS-based total equity (stockholders’ equity + minority interests) as of Jan. 1, 2000, includes minority interests of €13.0 million.
– Goodwill created on or after Jan. 1, 1995, from acquisitions is capitalized in accordance with IAS 22 and amortized
by straight-line charges over its useful life. Under HGB regulations, part of such goodwill was offset against the
reserves retained from earnings.
– Tangible assets, to which partly declining-balance depreciation had been charged, are now depreciated on a
straight-line basis, except for the property, plant and equipment of insignificant companies.
– Tangible assets held under capital leases (aka finance leases) are capitalized and the future rents (excluding
interest portion) concurrently recognized as liability. According to SIC-12, special-purpose leasing firms are
consolidated, too. Where sale & leaseback transactions are involved, the gains on asset disposal realized under
HGB regulations have been recognized as deferred income.
– Being based on tax regulations, untaxed/special reserves are not disclosed in the consolidated financial
statements according to IAS.
– The pension accruals, previously stated in the HGB-based accounts in accordance with Art. 6a German Income
Tax Act (“EStG”), have been redetermined and are annually remeasured to account for future pay, pension and
interest rate rises.
–Accruals for impending losses from uncompleted contracts are recognized at direct production cost with due regard
to directly proratable indirect materials and indirect labor, including production-related depreciation and pension
expenses but excluding any general administrative and selling expenses. In conformity with IAS 37, expenses are
not provided for.
– Assets and liabilities from any future income tax relief or burden (deferred taxes) are recognized according to the
liability method, based on the future tax load. Deferred taxes also include assets created by the offset of tax loss
carryovers against anticipated future profits, however, always provided that their realization is reasonably certain.
– Moreover, the Sundry line mainly mirrors the effects of IAS rules for the accounting treatment of development costs.
(3) Group of consolidated companies Besides Kolbenschmidt Pierburg AG,
the consolidated accounts include all
German and foreign subsidiaries in
which Kolbenschmidt Pierburg AG
holds the majority of voting rights
(whether directly or indirectly). Principally,
companies are initially consolidated
or deconsolidated when control
is transferred. Associated affiliates
and joint ventures are stated at equity.
The additions to investees stated at
equity involve the following:
12-31-2000 Additions Disposals 12-31-2001
Fully consolidated companies 47 -- (4) 43
thereof German 20 -- (1) 19
thereof foreign 27 -- (3) 24
Investees stated at equity 1 2 -- 3
thereof German -- 1 -- 1
thereof foreign 1 1 -- 2
The disposals from the consolidation
group concern, apart from Pierburg
Instruments GmbH, the following
companies:
– With effect as of December 31,
2001/January 1, 2002, the share
capital of Pierburg Instruments
GmbH was raised to admit a new
majority shareholder, thus reducing
the Kolbenschmidt Pierburg Group’s
equity interest in Pierburg Instruments
GmbH to a mere 49 percent.
As of December 31, 2001, this company
is carried at equity. While
Pierburg Instruments GmbH had
– As and when the controlling
majority was transferred as of
December 31, 2001, the shares in
Pierburg Instruments Inc. were
sold at a price of €6.0 million.
been fully consolidated in fiscal
2000, this company has been
carried at equity as from fiscal 2001.
– The other addition to investees
carried at equity refers to Kolbenschmidt
Pierburg Shanghai Nonferrous
Components Co. Ltd., a
joint venture formed in China with
effect as of April 1, 2001. The share
of €11.5 million was paid up cash.
– Moreover, the shares in Vehicle
Spares Ltd. were sold and transferred
at a price of £1 with economic
effect as of January 1, 2001.
– In the year under review,
SEM Bailly Compte S.A.S. was
merged into Pierburg S.à.r.l.
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