pdf (22.8 MB) - METRO Group

METRO gROUP : ANNUAL REPORT 2011 : BUsiNEss
→ noTes : CapITal ManaGeMenT
Use of discretionary decisions,
estimates and assumptions
The preparation of the consolidated financial statements was
based on a number of discretionary decisions, estimates and
assumptions that had an effect on the value and presentation
of the reported assets, liabilities, income and expenses
as well as contingent liabilities.
Discretionary decisions
The following topics, in particular, required discretionary
decisions in the preparation of these annual accounts:
→ Determination of the consolidation group by assessing control
opportunities (chapter “Consolidation group”). aside
from special purpose entities this concerns, in particular,
investments where control is not necessarily tied in with a
majority of voting rights due to special regulations in the
articles of association
→ Classification of leases as finance lease or operating lease –
including in sale-and-lease-back transactions (no. 20 “Tangible
assets”)
→ Classification of real estate assets as financial investments
(no. 21 “Investment properties”)
→ Classification of financial instruments to the category “held
to maturity” (no. 39 “Book values and fair values according
to measurement categories”)
Estimates and assumptions
estimates and underlying assumptions with significant
effects relate to the following circumstances, in particular:
→ Determination of fair values in the context of first-time consolidation
(chapter “notes on business combinations”)
→ Uniform Group-wide determination of useful lives for
limit ed-life assets (no. 13 “Depreciation/amortisation”,
no. 17 “Tangible and intangible assets”, no. 19 “other
intangible assets” and no. 20 “Tangible assets”)
→ event-related impairment tests relating to limited-life
assets (no. 13 “Depreciation/amortisation”, no. 17 “Tangible
and intangible assets”, no. 19 “other intangible assets” and
no. 20 “Tangible assets”)
→ annual goodwill impairment tests (no. 18 “Goodwill”)
→ Recoverability of receivables – particularly receivables
from suppliers (no. 23 “other receivables and assets”)
→ ability to realise tax receivables – particularly from loss
carry-forwards (no. 24 “Deferred tax assets/deferred tax
liabilities”)
→ Measurement of inventories (no. 25 “Inventories”)
→ p. 199
→ Determination of provisions for pensions (no. 32 “provisions
for pensions and similar commitments”)
→ Determination of other provisions – for example, for deficient
rental covers, restructuring and guarantees (no. 33
“other provisions [non-current]/provisions [current]”)
although great care has been taken in making these estimates
and assumptions, actual values may deviate from them in
individual cases. The estimates and assumptions used in the
Group accounts are regularly reviewed. Changes are taken
into account at the time new information becomes available.
Capital management
The aim of the capital management strategy of MeTRo GRoUp
is to secure the Company’s continued business operations, to
enhance its enterprise value, to create solid capital resources
to finance its profitable growth and to provide for attractive
dividend payments and capital service.
The capital management strategy of MeTRo GRoUp has
remained unchanged compared to the previous year.
EBiT after Cost of Capital (EBiTaC)
MeTRo GRoUp pursues a value-orientated corporate management
approach based on eBIT after Cost of Capital
(eBITaC). The focus is on the successful deployment of business
assets and the achievement of a value contribution for
MeTRo GRoUp exceeding the cost of capital.
Further information on the development of eBIT after Cost of
Capital is included in the Group management report – chapter
3 earnings position – in the section “eBIT after Cost of Capital
(eBITaC)”.
Rating
MeTRo GRoUp’s ratings by the two international agencies
Moody’s and standard & poor’s communicate the Company’s
creditworthiness to existing and potential debt capital investors.
Based on its current ratings, MeTRo GRoUp has comprehensive
access to all debt capital markets.
Detailed information on the MeTRo GRoUp rating can be
found in the Group management report – chapter 4 Financial
and asset position – in the “Financial management” section.