Basis of preparation
Statement of compliance
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards ('IFRS') adopted by the European Union.
Measurement
The consolidated financial statements have been prepared on the basis of historical cost except for investment property, investment property under development, financial assets at fair value through profit or loss and derivatives, which are recognised at fair value. Unless otherwise stated, the figures are presented in millions of euros rounded to one decimal place.
Estimates and assumptions
The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and related assumptions are based on historical experience and various other factors considered appropriate. Actual results may differ from these estimates. The estimates and underlying assumptions are constantly reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Changes in accounting policies
The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2009:
- IAS 1 (revised) Presentation of Financial Statements. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement.
- Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the profit and loss account and statement of comprehensive income). The group has elected to present two statements: an income statement and a statement of comprehensive income. The interim financial statements have been prepared under the revised disclosure requirements.
- IFRS 8, Operating Segments. IFRS 8 replaces IAS 14 Segment Reporting. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Operating segments are reported in a manner consistent with the internal reporting provided to the Management Board.
- The revised version of IAS 23 Borrowing Costs removed the previous option of either expensing or capitalising borrowing costs. Under the revised standard, an entity is required to capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. In accordance with the transitional provisions, the Group applies the revised IAS 23 to qualifying assets in respect of which borrowing costs are recognised on or after the date of mandatory implementation.
- IAS 40 has been changed for property being developed for future use if the investment meets the definition of 'investment property'. This results in property under development being brought within the scope of IAS 40 and its measurement at fair value; this was previously within the scope of IAS16 with measurement at cost. This change in measurement resulted in the opening balance in an increase of € 2.4 million directly in equity at 1 January 2009. Restatement of the comparative figures is not required by the revised IAS 40.
Significant accounting policies
The consolidated financial statements for 2009 relate to the Company and its subsidiaries (together referred to as the 'Group') and to the Group's investments in associates and interests in joint ventures.
Source: Annual Report 2009, Chapter Finacial Statements, page 90 (PDF, 240 kB)
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