pdf (22.8 MB) - METRO Group

METRO gROUP : ANNUAL REPORT 2011 : BUsiNEss
→ noTes : noTes To THe GRoUp aCCoUnTInG pRInCIples anD MeTHoDs
companies and associated companies is shown in no. 55
“affiliated companies of MeTRo aG as of 31 December 2011
pursuant to § 313 of the German Commercial Code”.
Consolidation principles
The financial statements of German and foreign subsidiaries
included in the consolidated accounts are prepared using uniform
accounting and valuation methods as required by Ias 27
(Consolidated and separate Financial statements).
Consolidated companies that, unlike MeTRo aG, do not close
their financial year on 31 December prepared interim financial
statements for consolidation purposes.
In accordance with IFRs 3 (Business Combinations), capital
consolidation is accomplished using the purchase method.
In the case of business combinations, the carrying amounts
of the investments are offset against the revalued pro rata
equity of the subsidiaries as of their acquisition dates.
any positive differences remaining after the allocation of
hidden reserves and charges are capitalised as goodwill.
Goodwill is tested for impairment regularly once a year – or
more frequently if changes in circumstances indicate a possible
impairment. If the carrying amount of a unit that was
assigned goodwill exceeds the recoverable amount, goodwill
is written down to the lower recoverable amount.
In addition, in the case of business combinations, hidden
reserves and charges attributable to non-controlling interests
must be disclosed and reported in equity as “non-controlling
interests”. MeTRo GRoUp does not use the option
to recognise the goodwill attributable to non-controlling
interests. In accordance with IFRs 3, any negative differences
remaining after the allocation of hidden reserves and
charges after another review during the period in which the
business combination took place are amortised to income.
purchases of additional shareholdings in companies where a
controlling interest has already been acquired are recognised as
equity transactions. as a result, the assets and liabilities are not
remeasured at fair value nor are any gains or losses recognised.
any differences between the cost of the additional shareholding
and the carrying amount of the net assets on the date of acquisition
are directly offset against the capital attributable to the buyer.
Investments accounted for under the equity method are treated
in accordance with the principles applying to full consolidation,
with existing goodwill being included in the recognition of the
→ p. 190
investment, and non-scheduled amortisation of this goodwill
being included in income from associated companies in the
financial result. any deviating accounting and measurement
methods used in the financial statements’ underlying equity
valuation are retained as long as they do not substantially
contradict MeTRo GRoUp’s uniform accounting and measurement
methods.
any write-backs or write-downs to shares in consolidated
subsidiaries carried in the individual financial statements are
reversed.
Intra-Group profits and losses are eliminated, sales revenues,
expenses and income as well as receivables and liabilities
and/or provisions are consolidated. Interim results in
fixed assets or inventories resulting from intra-Group transactions
are eliminated unless they are of minor significance.
In accordance with Ias 12 (Income Taxes), deferred taxes are
recognised for consolidated transactions.
Currency translation
In the subsidiaries’ separate financial statements, transactions
in foreign currency are valued at the rate prevailing on
the transaction date. exchange rate fluctuations up to the
closing date are taken into account in the valuation of receivables
and payables in foreign currency; the resulting gains and
losses are recognised in income. Currency translation differences
from receivables and payables in foreign currency,
which must be regarded as a net investment in a foreign business
operation, are reported as reserves retained from earnings
outside of profit or loss.
The annual financial statements of foreign subsidiaries are
translated into euros according to the functional currency concept
of Ias 21 (The effects of Changes in Foreign exchange
Rates). The functional currency is defined as the currency of
the primary economic environment of the subsidiary. since all
consolidated companies operate as financially, economically
and organisationally autonomous entities, their respective
local currency is the functional currency. assets and liabilities
are therefore converted at the average exchange rate prevailing
on the closing date, whereas income statement items are
translated at the annual average exchange rate. Differences
from the translation of the financial statements of non-German
subsidiaries do not affect income and are shown as separate
items under reserves retained from earnings. such currency
differences are recorded as income in the year in which foreign
subsidiaries are deconsolidated.