measure and monitor the processes and report results ... - Refresco.de

Financial review 2010
lease payments made under finance leases are apportioned
between the finance expense and the reduction of the
outstanding liability. The finance expense is allocated to each
period of the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the
liability. Contingent lease payments are accounted for by
revising the minimum lease payments over the remaining term
of the lease when the lease adjustment is confirmed.
2.17 Finance income and expense
Finance income comprises interest income on bank deposits
and gains on hedging instruments that are recognized in profit
or loss. Interest income is recognized in profit or loss as it
accrues, using the effective interest method. Finance expense
comprises interest expense on borrowings, the unwinding
of discount on provisions and profit and losses on interest
hedging instruments that are recognized in profit or loss.
2.18 Income tax
Income tax expense comprises current and deferred tax.
Income tax expense is recognized in profit or loss except
to the extent that it relates to items recognized in other
comprehensive income in which case the income tax expense
is also recognized in other comprehensive income.
Current tax is the income tax expected to be payable on the
taxable profit for the year, using tax rates enacted or
substantively enacted at the reporting date, together with any
adjustment to tax payable in respect of previous years.
Deferred tax is recognized using the balance sheet method,
providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes. In addition,
deferred tax is not recognized arising on the initial recognition
of goodwill. Deferred tax is measured at the tax rates that
are expected to be applied to temporary differences in the
reporting period they reverse, based on the laws that have
been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset:
•
•
if there is a legally enforceable right to offset current tax
liabilities and assets, and
they relate to income taxes levied by the same tax
authority on the same taxable entity or on different
taxable entities which intend to settle current tax
liabilities and assets on a net basis or the tax assets
and liabilities of which will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is
probable that future taxable profits will be available against
which the temporary difference can be utilized. Deferred tax
assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related tax
benefit will be realized.
2.19 New standards and interpretations not yet adopted
A number of new standards, amendments to standards and
interpretations are not yet effective for the year ended
December 31, 2010 and have not been applied in preparing
these consolidated financial statements. As of 2010 the Group
has implemented revised IFRS 3.
Revised IFRS 3 Business Combinations establishes a fair value
measurement principle for recognizing and measuring all assets
acquired and liabilities assumed, including contingent
consideration, in a business combination. Revised IFRS 3
introduces the term non­controlling interest (formerly minority
interest) and permits an acquirer to recognize non­controlling
interests at its either proportionate interest in the fair value
of the identifiable assets and liabilities of the acquiree or at
fair value. The revised standard also modifies the definition of
a business combination to focus on control, and modifies the
definition of a business to clarify that it can include a set of
activities and assets which, while not currently being operated
as a business, is capable of operating as a business. It incorporates
the following changes that are likely to be relevant to the
operations of the Group: