Consolidated Financial Statements - L. Possehl & Co. mbH

19. Shareholders’ equity
The design of the equity analysis is patterned after DRS 7.
The equity held by the sole shareholder Possehl Stiftung of the parent
company L. Possehl & Co. mbH is reported as the subscribed capital.
Apart from the retained earnings of the parent company, the retained
earnings include the adjustment item from the currency translation of
foreign fi nancial statements as well as the setting-off of goodwill and
existing net equity losses.
They developed as follows during the year under review:
in €T
Retained earnings as of January 1, 2005 107,009
Currency translation differences 10,004
Discontinuations 2,722
Change in consolidation of adjustment items -11,319
Other consolidation procedures 70
Retained earnings as of December 31, 2005 108,486
The transition from the Group’s net profi t to the consolidated net profi t
is as follows:
in €T
Consolidated net profi t 26,496
Minority interests -4,305
Previous year’s consolidated net profi t 18,773
Currency differences 837
Consolidated profi t 41,801
20. Provisions for pensions
The pension obligations in the amount of € 47,637,000 exist mainly for
the parent company and the German subsidiaries. The provisions for
pensions include 1,310 future pensions (previous year: 551) and 896
(previous year: 698) current pensions for entitled active and former
employees as well as surviving dependents. The amount of the pension
obligations depends on the term of employment and the total salaries
or contributions of the benefi ciaries.
The valuation follows the tables of Dr Klaus Heubeck from the year
2005 and uses an interest rate of 6 % to the partial value pursuant to
Article 6a EStG (income tax law). The difference between the tables
of 2005 and 1998 was added in completely if the new tables result in
a higher amount, and in the case of a smaller provision, the reversal
amount is released over a period of time of three years according to
the provision of Article 6a Para. 4 EStG. In addition, obligations for
adjusting the current pensions in accordance with Article 16 BetrAVG
by € 1,580,000 (previous year € 1,552,000) are taken into account.
21. Other provisions
in €T 12/31/2005 12/31/2004
1. Provisions for deferred taxes 3,358 3,354
2. Other tax provisions 6,663 3,263
3. Other provisions 47,491 35,889
57,512 42,506
All identifi able risks and uncertain obligations are included to a reasonable
extent as tax or other provisions applying sound business judgment.
The deferred tax assets and the deferred tax liabilities result from the
differences between commercial and tax accounts of German and
international Group companies. Moreover, deferred taxes are offset
against earnings-relevant consolidation entries. Deferred tax assets
and deferred tax liabilities are balanced. The recognition of a deferred
tax asset from tax carry forwards is not realized.
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