The Group financial statements are based on the annual accounts of companies forming part of the Group, such accounts having been compiled under uniform Group rules as of September 30, 2009, and, for the comparative period, as of September 30, 2008. By departure from this, we have used interim accounts in respect of six companies, as local statutory requirements dictate that these companies have fiscal years ending December 31.
Capital consolidation was carried out in accordance with IFRS (Glossary) 3. According to IFRS 3 all business combinations have to be accounted for using the purchase method, i.e., the acquired assets, liabilities and contingent liabilities are measured at fair value. The excess of the cost of the business combination over the acquirer’s interest in the net fair value of recognized assets, liabilities and contingent liabilities is recognized as goodwill.
Goodwill arising from initial consolidation is not amortized on a scheduled basis. Moreover, goodwill is tested for impairment annually or if an indication for impairment exists, and if applicable, an impairment loss is recorded.
The interests in subsidiary companies, which are not attributable to the parent company, are shown within Group equity as “minority interest.” Other shareholders’ interests are also calculated on the basis of the fair values of assets, liabilities and contingent liabilities attributable to them.
Mutual receivables and payables between companies included in the consolidated accounts, intra-Group income and expenses as well as intra-Group profit or loss from the delivery of goods and services are eliminated. Deferred taxes (Glossary) are applied on consolidation transactions, which have an effect on profit.
