Annual Report 2012 - Knorr-Bremse AG.
Annual Report 2012 - Knorr-Bremse AG.
Annual Report 2012 - Knorr-Bremse AG.
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152<br />
Notes to the Consolidated Financial Statements<br />
During fiscal year <strong>2012</strong> the Group founded the following companies, which are included in consolidation:<br />
<strong>Knorr</strong>-<strong>Bremse</strong> Pensionsgesellschaft mbH, Munich/Germany<br />
<strong>Knorr</strong>-<strong>Bremse</strong> Systeme für Nutzfahrzeuge Pensionsgesellschaft mbH, Munich/Germany<br />
<strong>Knorr</strong>-<strong>Bremse</strong> Technology Center India Private Limited, Pune/India<br />
The following company has been renamed:<br />
<strong>Knorr</strong>-<strong>Bremse</strong> Railway Technologies (Shanghai) Co., Ltd., Shanghai/China<br />
(formerly Merak Railway Technologies (Shanghai) Co., Ltd., Shanghai/China)<br />
The following companies have been merged or sold:<br />
Gorilla Brake & Components, Inc., Brantford, Ontario/Canada<br />
ITERIS Europe GmbH, Bietigheim-Bissingen/Germany<br />
Stahlwerk Volmarstein GmbH, Wetter (Ruhr)/Germany<br />
This means that compared to the previous year, the number of companies included in consolidation<br />
has increased by one German company and one foreign company. On the following pages, a detailed<br />
list of affiliated and associated companies appears in a separate breakdown of the Group’s shareholdings.<br />
The above-mentioned changes in the scope of consolidation had no significant impact on the<br />
Group’s net assets, financial position and operating results. The newly consolidated companies did<br />
not bring about any change in the balance sheet total.<br />
Principles of consolidation<br />
Until December 31, 2009, the book value method was used to consolidate investments in subsidiaries.<br />
This entailed offsetting book values against the value of our interests in the shareholders’ equity<br />
of the subsidiaries at the time of the initial consolidation. Companies were included in consolidation<br />
at the date of acquisition or at the balance sheet date. Since fiscal year 2010, investments in subsidiaries<br />
have been consolidated using the revaluation method. This entails reporting shareholders’ equity<br />
at the value corresponding to the market value of the assets and borrowings to be included in<br />
the consolidated financial statements. Companies are included in consolidation at the date of acquisition.<br />
Since 2002, any resulting goodwill has been capitalized in compliance with GAS standards.<br />
Scheduled amortization is applied on the basis of operational considerations relating to useful life;<br />
within the Group, this may not exceed 20 years. The useful life of goodwill is determined using the<br />
subsidiaries’ longer-term, strategic business models.<br />
Wherever possible, a negative goodwill resulting from the consolidation in investments is released for<br />
the year in which it arises, as permitted by German commercial law and accounting standards.<br />
Associated companies are consolidated using the equity method, with goodwill generally included<br />
as part of the cost of acquiring interests in associated and related companies. Associated companies<br />
acquired prior to January 2010 were consolidated at the date of acquisition or the balance sheet date.<br />
As from fiscal year 2010, companies are included in consolidation at the date of acquisition.