talanx group annual report 2011 en

168
Financial statements Notes
General information
Talanx Group. Annual Report 2011
Accounting principles
and policies
Consolidation
Segment reporting Consolidation,
business combinations
Non-current assets held for
sale and disposal groups
Consolidation principles
The consolidated financial statement was drawn up in accordance with uniform Group accounting
policies. The annual financial statements included in the consolidated financial statement were
for the most part prepared as at 31 December. Compilation of interim financial statements for the
Group companies with diverging financial years is not required pursuant to IAS 27 “Consolidated
and Separate Financial Statements” because their closing dates are no more than three months
prior to the Group closing date. The effects of significant transactions between diverging financial
years and the Group closing date were taken into account.
The capital consolidation is compiled in accordance with the requirements of IAS 27. Subsidiaries
are all companies (including special purpose entities) with respect to which the Group exercises
control over financial and business policy or, in the case of special purpose entities, the majority of
economic risks and benefits remain within the Group. Subsidiaries are included in the consolidated
financial statement (full consolidation) from the point in time when control passed to the Group.
They are deconsolidated at the point in time when control ends.
Investments in subsidiaries not included in the consolidated financial statement because of their
subordinate importance – in relation to assets, financial position and net income of the Group – are
recognised at fair value or, if this cannot be reliably established, at amortised cost in the balance
sheet item “Investments in affiliated companies and participating interests.”
Acquired subsidiaries are accounted using the purchase method. The acquisition costs associated
with purchase correspond to the fair value of the assets offered and liabilities arising/assumed
at the time of the transaction. Acquisition-related costs are recognised in income when they are
incurred. Assets, liabilities and contingent liabilities that can be identified in the context of a corporate
acquisition are measured upon initial consolidation at their fair values at the time of acquisition.
A difference arising out of the netting of the acquisition costs with the fair value of the assets
and liabilities is recognised as goodwill under intangible assets. In accordance with IFRS 3 “Business
Combinations” scheduled amortisation is not taken on goodwill; instead, it is written down as necessary
on the basis of annual impairment tests. Immaterial and negative goodwill are recognised in
the statement of income in the year of their occurrence.
Non-controlling interests in shareholders’ equity or in the net income of majority-owned subsidiaries
are shown separately in equity in the item “Non-controlling interests in equity” and in the
statement of income in the item “Non-controlling interests in profit or loss”.