4 - Refresco.de

Financial review 2009
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.
2.18 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, 2009 and have not been applied in preparing
these consolidated financial statements. Other than Revised
IFRS 3, the new and amended standards are not expected to
have a significant impact on the consolidated financial statements
of the Group.
Revised IFRS 3 Business Combinations (2008) 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 non-controlling interest (formerly minority
interest) and permits an acquirer to recognize non-controlling
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:
The definition of a business has been broadened, which
is likely to result in more acquisitions being treated as
business combinations.
Contingent consideration will be measured at fair value,
with subsequent changes therein being recognized in
profit or loss.
Transaction costs, other than share and debt issue costs,
will be expensed as incurred.
Any pre-existing interest in the company acquired will be
measured at fair value with the gain or loss being recognized
in profit or loss.
Any non-controlling (minority) interest will be measured
either at fair value or at its proportionate interest in the
identifiable assets and liabilities of the company acquired,
on a transaction-by-transaction basis.
Revised IFRS 3, which becomes mandatory for the 2010 consolidated
financial statements, will be applied prospectively and
there will therefore be no impact on prior periods in the 2010
consolidated financial statements.
2.19 Determination of fair values
A number of the accounting policies and disclosures require the
determination of fair value, for both financial and non-financial
assets and liabilities. Fair values have been determined
for measurement and/or disclosure purposes based on the
methods set out below. Where applicable further information
regarding the assumptions made in determining fair values is
disclosed in the notes specific to that asset or liability.
Property, plant and equipment
The fair value of property, plant and equipment recognized as a
result of a business combination is based on market values.
The market value of property is the estimated amount for
which a property would likely be exchanged on the date of
valuation between a willing buyer and a willing seller in an
arm’s length transaction after proper marketing wherein the
parties had each acted knowledgeably, prudently and without
compulsion. The market value of items of machinery & equip-