IMMOEAST Annual Report 2006/07

116 IMMOEAST Annual Report 2006/07
IAS 1.126(a)
IAS 1.46
IAS-reg.
1606/2002
IAS 1.14
in connection
with IFRS 3
IAS 27.26
1. General principles
1.1 Introduction
IMMOEAST AG (hereafter IMMOEAST) maintains its registered headquarters at A-1010 Vienna, Bankgasse 2. The
business activities of the IMMOEAST Group include the development and acquisition of properties, above all in Central
and Eastern Europe, as well as the sale, management and commercial utilisation of properties to optimise asset
management.
The company’s share has traded in the standard market segment of the Vienna Stock Exchange since 12 December
2003 and in the Prime Market Segment since 21 March 2005.
The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards
(IFRS) that were valid as of the balance sheet date. IFRS include the new IFRS issued by the International
Accounting Standards Board (IASB) and International Accounting Standards (IAS) as well as the Interpretations of the
International Financial Reporting Interpretations Committee (IFRIC) and Standing Interpretations Committee (SIC).
These consolidated financial statements are based on Regulation (EU) Nr. 1606/2002 of the European Parliament
and the European Union for the application of international accounting standards (IAS-regulation 1606/2002), which
require capital market-oriented companies in the European Union to prepare and publish their consolidated financial
statements for business years that begin on or after 1 January 2005 in accordance with International Financial Reporting
Standards. Art. 3 Par. 1 of IAS regulation 1606/2002 requires the application of those standards, which were
adopted into the body of law of the European Union through the procedure set forth in Art 6 Par. 2 of IAS regulation
1606/2002. The International Financial Reporting Standards adopted by the European Union take effect immediately
in the member states of the European Union and do not require separate implementation into national law. Valid
standards in the sense of European Union law cover all International Financial Reporting Standards published in the
relevant country language. § 245a Par. 1 of the Austrian Commercial Code in the version published in Austrian federal
gazette BGBl. I 161/2004 requires companies to prepare consolidated financial statements in accordance with
International Financial Reporting Standards as defined in Art. 4 Par. 1 of IAS regulation 1606/2002. The consolidated
financial statements prepared in previous years by IMMOEAST in accordance with International Financial Reporting
Standards were based on the option provided by § 245a Par. 1 of the Austrian Commercial Code, in the version published
in Austrian federal gazette BGBl. I 1999/49. This option releases a company from the obligation to prepare
consolidated financial statements pursuant to Austrian commercial law if the company prepares consolidated financial
statements in accordance with international accounting standards.
The IASB framework does not represent an integral part of IFRS and, for this reason, was not adopted into the body of
law of the European Union. However, IAS 8.11 (b) calls for the application of the definitions and recognition criteria for
assets, liabilities, expenses and income that are anchored in the framework to provide interpretations and fill gaps.
In keeping with Point 2.1.5 of the (legally nonbinding) commentary on certain sections of IAS regulation 1606/2002
of the EU, the framework forms a “basis for the formation of judgments on the solution of accounting problems”. For
this reason and because of the express reference in IAS 8.11 (b), the framework was applied without limitation when
the consolidated financial statements of IMMOEAST were prepared.
The annual financial statements of all Austrian and foreign companies included in the consolidated financial statements,
either through full or proportionate consolidation, were converted to IFRS. In the case of business combinations
as defined in IFRS 3, the financial statements were revalued, and audited or subjected to a review by independent
certified public accountants in agreement with International Standards on Auditing (ISA) and the International
Standards on Review Engagements (ISRE). The accounting and valuation principles used by all companies included
in the consolidated financial statements were standardised and adjusted to conform to the options elected by
IMMOEAST. In accordance with IAS 27.26, the balance sheet date for the consolidated financial statements is the
same as the balance sheet date of the parent company. The annual financial statements of all companies included in
the consolidation were prepared on the same balance sheet date as the consolidated financial statements.