Technologies · Systems · Solutions - Dürr

4. New accounting standards
5. Consolidation principles
Consolidated financial statements of Dürr AG
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In June 2003, the International Accounting Standards Board (IASB) issued IFRS 1 (First-time
Adoption of International Financial Reporting Standards) which regulates the first-time adoption
of the standards of the IASB and which came into force on January 1, 2004.
On March 31, 2004, the IASB also published IFRS 3 (Business Combinations) together with the
revised IAS 36 (Impairment of Assets) and IAS 38 (Intangible Assets). The application of IFRS 3
is mandatory for reporting periods beginning after January 1, 2005, but may be applied earlier.
Dürr has applied IFRS 3 in conjunction with IAS 36 and IAS 38 as of January 1, 2003.
The standards revised in the IASB Improvement Projects were published by the IASB in
December 2003. They must be used from January 1, 2005. Earlier adoption is encouraged. This
relates to the following standards:
IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10 Events after the Balance Sheet Date
IAS 16 Property, Plant and Equipment
IAS 17 Leases
IAS 21 The Effect of Changes in Foreign Exchange Rates
IAS 24 Related Party Disclosures
IAS 27 Consolidated and Separate Financial Statements
IAS 28 Investments in Associates
IAS 31 Interests in Joint Ventures
IAS 32 Financial Instruments – Disclosures and Presentation
IAS 33 Earnings per Share
IAS 39 Financial Instruments – Recognition and Measurement and
IAS 40 Investment Property.
In 2004 the IASB also published the following new IFRS:
IFRS 2 Share-based Payment
IFRS 4 Insurance Contracts
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and
IFRS 6 Exploration for and Evaluation of Mineral Resources.
With the exception of IAS 27, the changed or new standards were not applied in the consolidated
financial statements as of December 31, 2004.
The consolidated financial statements of Dürr AG and the subsidiaries and associates included
in the consolidation are based on the IFRS financial statements as of December 31, 2004, and are
prepared in accordance with uniform rules and audited by independent auditors.
For subsidiaries included in the consolidated financial statements for the first time, capital consolidation
is performed according to the purchase method of accounting (IFRS 3 “Business
Combinations”). Thereby the purchase costs of the acquired shares are offset against pro rata
equity of the subsidiary. All purchased assets and liabilities are included in the consolidated
balance sheet at the time of purchase, taking hidden reserves and encumbrances into account.