Annual Report 2010/11 - Sonova

106
3.7 Restatement of prior year’s figures
Restatement Resulting fRom the finalization of the acquisition accounting of advanced Bionics
(in comPliance with ifRs 3 RePoRting RequiRements)
as of december 30, 2009 the group acquired advanced Bionics corporation, ca, usa. due to the short period prior to
the end of the financial year, the accounting for this acquisition in the 2009/10 financial statements was provisional. ifRs 3
allows a twelve month measurement period from acquisition date to complete the initial accounting. any changes in the
carrying amounts of the identifiable assets, liabilities or contingent liabilities shall be calculated as if the fair values at the
acquisition date had been recognized from that date. comparative information included in these financial statements
shall be presented as if the initial accounting had been completed from the acquisition date. this includes any changes in
depreciation, amortization or other profit or loss recognized as a result of completing the initial accounting.
on november 23, 2010, the sonova group announced a voluntary recall of the hiRes 90K cochlear implant from advanced
Bionics and as a precaution the device was removed from the market. this measure was taken in response to two instances
where the product experienced a rare malfunction requiring explantation. the two instances occurred before the acquisition
date. as of the time of the finalization of the provisional acquisition accounting, such a product recall was not anticipated;
therefore, the initial accounting had to be adjusted to account for the impact of the recall and the changes in the
business plan on the carrying values of the assets and liabilities as of acquisition date. in addition, the acquisition balance
sheet was further adjusted based on the final assessment and valuation of certain balance sheet items, including acquisition­related
intangibles, provisions and inventory.
as a result of the revised acquisition accounting, the residual goodwill balance increased by chf 136.4 million. in accordance
with ias 36 the increased goodwill was tested for impairment on a retrospective basis, using the revised business
plan and an impairment charge of chf 156.6 million was recorded in the financial year 2009/10 (refer note 19).
the following tables reflect the impact on the prior year’s financial statement line items as a result of the finalization of the
acquisition accounting for advanced Bionics:
Consolidated income statement 1,000 chf 2009/10 2009/10
Published adjustments Restated
Sales 1,500,306 1,500,306
cost of sales (441,879) 170 (441,709)
Gross profit 1,058,427 170 1,058,597
Operating profit before acquisition-related amortization, impairment (EBITA) 420,106 170 420,276
acquisition­related amortization (13,353) 1,052 (12,301)
Impairment (156,556) (156,556)
Operating profit (EBIT) 406,753 (155,334) 251,419
financial expenses (9,103) (139) (9,242)
Income before taxes 401,930 (155,473) 246,457
Income taxes (47,117) 17,292 (29,825)
Income after taxes 354,813 (138,181) 216,632
Attributable to:
equity holders of the parent 354,457 (137,239) 217,218
non­controlling interests 356 (942) (586)
Basic earnings per share (chf) 5.41 (2.10) 3.32
diluted earnings per share (chf) 5.36 (2.07) 3.28