english - About Heraeus
english - About Heraeus
english - About Heraeus
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Principles of consolidation<br />
The financial statements of companies included in the consolidated financial statements<br />
are prepared as of the Group’s closing date using uniform accounting and measurement<br />
principles in accordance with IFRS.<br />
During consolidation, the carrying amounts of the participations in the subsidiaries are<br />
offset against the respective share in equity of these subsidiaries. For companies that<br />
were initially consolidated before January 1, 2004, the acquisition was accounted for using<br />
the book value method according to Section 301 (1) No. 1 HGB. The acquisition costs<br />
of the shares in subsidiaries were offset against the carrying value of the Group’s share<br />
in equity at the date of the acquisition or first-time consolidation.<br />
For companies that were initially consolidated after the transition to IFRS (January 1,<br />
2004), the acquisition was accounted for using the purchase method according to IFRS 3.<br />
This method prescribes a revaluation of the acquired company, where all hidden reserves<br />
and hidden charges must be disclosed and all identifiable intangible assets must be recognized<br />
separately. Any excess of cost of acquisition over net assets acquired remaining<br />
after the purchase price allocation is capitalized as goodwill and tested for impairment<br />
once a year to determine if the acquisition has maintained its value. If this is not the<br />
case, an impairment loss is recognized. Negative goodwill is recognized in the income<br />
statement at the date of the acquisition.<br />
Substantial investments in associates over which <strong>Heraeus</strong> is able to exert significant influence<br />
are accounted for using the equity method in accordance with IAS 28. The carrying<br />
amount of a company accounted for using the equity method is adjusted annually by the<br />
percentage of any change in its equity corresponding to <strong>Heraeus</strong>’s percentage interest in<br />
the company.<br />
In the consolidation of income and expenses, intercompany sales and other intercompany<br />
income were offset against the corresponding expenses. In the course of the preparation<br />
of the consolidated financial statements, the processes for the consolidation of income<br />
and expenses were restructured. In comparison with the previous process, the adjustments<br />
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