Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

Notes
1. General
Both the annual and the consolidated
statement for Nordzucker AG published
29 February 2004 have been drawn up in
accordance with accounting regulations
governed by German commercial law.
The provisions of the German Stock Companies
Act have also been adhered to. The
details presented below provide explanations
on the two Nordzucker AG reports
together; unless indicated otherwise, comments
and statements apply to both.
In the interest of clarity, legally required
comments on items listed in the
balance sheet and in the statement of
income of the Nordzucker annual report
are largely to be found in the Notes. The
methods of classification and the principles
of identification and valuation introduced
last year are continued in this
report. Should it prove necessary to
depart from last year’s system, a separate
explanation will be given.
The statement of income is drawn up
from all group companies in line with the
total expenditure format.
In the statement of income, EU sugar
market regulations levies have been
deducted from sales revenues to give
greater informational value through the
separate reduction of these transitory
levies. The imposition of these levies
bears no reflection on actual corporate
performance.
Comparing the figures in the annual
report 2003/04 with the individual financial
statements of the previous year, we
can see that Union-Zucker Südhannover
GmbH in Nordstemmen transferred nearly
all assets and liabilities to book values
in exchange for the granting of corporate
status. Union-Zucker operated a sugar
factory in Nordstemmen which will continue
to be operational.
Furthermore, and in connection with
this, commercial operations which last
year were processed by Nordzucker
GmbH & Co. KG were integrated into
Nordzucker AG with effect from 1 January
2004. In particular, inventories were transferred
to Nordzucker AG from this date.
As a consequence of the transactions
carried out above and to facilitate a comparison
between both annual reports of
Nordzucker AG, the following changes
are given for significant report items:
Additions through fusion/merger,
or integration of commercial operations
(book value) for
(in t million)
Tangible assets 61.6
Financial assets 2.8
Inventories 30.3
Accounts receivable
and other assets 10.2
Special item 5.3
Reserves 24.2
Trade payables
and other obligations 59.8
2. Currency Translation
Currency receivables are translated at the
bank’s selling rate on the date transacted
or at a lower rate on the balance sheet
date, currency obligations at the bank’s
buying rate on the date transacted or at
a higher rate on 29 February 2004.
Assets and liabilities for foreign subsidiaries
in the consolidated statement are
translated at the middle rate on the
balance sheet date, while items in the
income statement are generally translated
at the average middle rate for the
year. Currency disparities arising from
equity capital translations at the time
recognition in the consolidated statement
are treated as not affecting net
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