iesy Repository GmbH - Irish Stock Exchange

Consolidation Principles
COURTESY TRANSLATION FROM THE GERMAN LANGUAGE
KABELNETZ NRW HoldCo GmbH, COLOGNE
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2005—(CONTINUED)
The group companies are consolidated for the first-time on the date of acquisition. The group companies were included
in the consolidated financial statements for the first time as of the following balance sheet dates:
Subsidiary
380
Date of first-time
consolidation
KABELNETZ NRW Verwaltungs GmbH, Cologne December 13, 2002
KABELNETZ NRW GmbH & Co. KG, Cologne December 20, 2002
ish Verwaltungs-GmbH, Cologne January 31, 2003
ish GmbH & Co. KG, Cologne January 31, 2003
ish KS NRW Beteiligungs GmbH, Cologne January 31, 2003
ish KS NRW GmbH & Co. KG, Cologne January 31, 2003
Kabel-Service Gesellschaft des Handwerks mbH, Paderborn January 31, 2003
As a rule, subscribed capital was offset in accordance with Sec. 301 (1) Sentence 2 No. 2 HGB (purchase method of
accounting). Equity was therefore carried at the amount that corresponds to the value of the assets, liabilities, deferred items
and special items included in the consolidated financial statements which was attributable to these items on the date of
acquisition of the shares.
Any remaining debit differences from capital consolidation after the recognition of any hidden reserves in the
appropriate asset items are amortized over 15 years in accordance with Sec. 309 (1) Sentence 2 HGB.
All loans, other receivables, accruals and liabilities between the companies included in consolidation have been offset.
Revenue and other income from intercompany transactions have been offset against the appropriate expenses in the
consolidated income statement.
Deferred taxes are recognized for temporary valuation differences in the individual financial statements, for temporary
differences from the adjustment of the individual financial statements to the uniform group accounting and valuation
principles and for consolidation entries with an effect on the result.
(3) Accounting and Valuation Principles
Business Expansion Expenses
Business expansion expenses include expenses incurred in fiscal year 2001 in connection with the expansion of cable
TV services offered by ish KG to include internet and telephony services. Amortization is provided using the straight-line
method over a period of four years.
Intangible Assets
Intangible assets are stated at cost less ordinary and, if necessary, extraordinary amortization.
Ordinary amortization is provided using the straight-line method over a useful life of three to four years and is charged
pro rata temporis in the year of acquisition.