Download Complete PDF - Informe Anual 2012

The Directors have assessed the potential future impacts of these standards, and consider that their entry into force will not have a significant
impact on the consolidated annual accounts, except for the following:
• IFRS 11 Joint Arrangements.
IFRS 11 Joint Arrangements will replace IAS 31, which is currently in force. The fundamental change which IFRS 11 addresses with regard to
the current standard is the elimination of the proportional consolidation option for jointly controlled entities, which would be consolidated by
the equity method.
This new rule will affect the Group’s consolidated annual accounts, since the proportional consolidation option has been used to consolidate
joint ventures in its financial statements (see Note 2.5.3 and Annex III). Accordingly, the impact of consolidating these joint ventures by the
equity method, instead of by proportional consolidation, would lead, in more significant items, to a smaller net turnover of €7,555 thousand,
lower procurement costs of €5,961 thousand, reduced personnel expenses of €860,000 and smaller operating costs of €1,094 thousand, all
calculated in reference to the current figures.
• IFRS 12: Disclosure of interests in other entities.
IFRS 12 is a disclosure standard which groups together all the accounting disclosure requirements on interests in other entities (be they
subsidiaries, associated companies, joint ventures or other interests), including new disclosure requirements.
Its entry into force would foreseeably broaden the disclosures currently required by the Group in relation to interests in other entities and other
investment vehicles.
2.2 Information on 2011
As required by IAS 1, the information from 2011 contained in this consolidated annual report is presented solely for comparison with the
information from 2012, and consequently does not in itself constitute the Group’s consolidated annual accounts for 2011.
2.3 Currency of presentation
These consolidated financial statements are presented in euros. Any foreign currency transactions have been booked in accordance with the
criteria described in Note 4.9.
2.4 Responsibility for the information, estimates made and sources of uncertainty
The Directors of the Parent Company are responsible for the information contained in these consolidated financial statements.
Estimates made by the management of the Group and of the consolidated entities (subsequently ratified by their Directors) have been used in
the Group’s consolidated financial statements to quantify some of the assets, liabilities, revenue, expenses and undertakings recorded. These
estimates essentially refer to:
- Losses arising from asset impairment.
- The hypotheses used in the actuarial calculation of liabilities for pensions and other undertakings made to the personnel.
- The useful life of the tangible and intangible assets.
- The valuation of consolidation goodwill.
- The market value of specific assets.
- The estimation of onerous agreements.
- Calculation of provisions and evaluation of contingencies.
These estimates were made on the basis of the best available information on the facts analysed. Nonetheless, it is possible that future events
may take place that make it necessary to modify them, which would be done in accordance with IAS 8.
As is show in the balance sheet, current liabilities considerably exceed current assets. In addition, in 2012 the Group incurred losses of €292
million.
On 17 April 2013, as described under Note 31, the Parent Company completed the incorporation of China’s HNA Group into the share capital
of NH Hoteles, S.A., through the subscription and payment of a capital increase of €234 million.
Furthermore, on 30 April 2013 lender banks agreed to waive the Group’s obligation to comply with the financial ratios established in the
syndicated loan agreement.
The Directors of the Parent Company have reformulated these annual accounts following the going concern principle, since they consider that
the Group will meet its payment obligations on their maturity date. It will do so by using the capital investment paid in last week by the HNA
Group, by expanding the asset sale process, and through new capitalisation and financing transactions. It is confident that these operations
will restore the financial equilibrium and profitability of the Group.
2.5 Consolidation principles applied
2.5.1 Subsidiaries (See Annex I)
Subsidiaries are considered as any company included within the scope of consolidation in which the Parent Company directly or indirectly
controls their management due to holding the majority of voting rights in the governance and decision-making body, with the capacity to
exercise control. This capacity is shown when the Parent Company holds the power to manage an investee entity’s financial and operating
policy in order to obtain profits from its activities.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 69