PDF, 3.2 MB - Pfleiderer AG

Impact of the Additions to the Scope of Consolidation on Significant Balance Sheet
Items Reported as Continuing Operations:
‘000 euros
Assets
Fixed assets 27,594
Inventories 934
Trade receivables 3,243
Liabilities
Accurals 6,828
Other liabilities 33,056
The sales revenues of the continuing operations increased by 2,304 thousand euros as a result
of the additions to the scope of consolidation.
Principles of Consolidation
The capital consolidation is carried out by the purchase accounting method. In accordance therewith,
the acquisition costs of the acquired interests are set off against the share of the equity
that is attributable to the parent company as of the acquisition date. The difference is assigned
in accordance with the investment holding to the assets and liabilities of the subsidiary up to
their fair value (proportionate revaluation method). Any remaining debit difference is recognized
as goodwill and is tested for impairment in accordance with SFAS 142 (Goodwill and Other
Intangible Assets).
Investments in affiliated companies that are not fully consolidated are measured at acquisition
cost. Investments in associated companies did not have to be accounted for by the equity method,
due to immateriality.
All intercompany receivables and liabilities, revenues, expenses and income, and intercompany
profits and losses, are eliminated on consolidation.
Minority interests are determined on the basis of the stockholders’ equity as of the balance sheet
date, and are reported in the consolidated balance sheet, together with the shares of profits and
losses, under a separate item entitled “minority interests”.
Acquisitions and Disposals/Discontinued Operations
In 2004, the Pfleiderer Group acquired the MDF production location of “Hornitex Werke Nidda
Kunststoff- und Holzwerkstoffplatten GmbH & Co. KG” through its newly established subsidiaries,
Pfleiderer Holzwerkstoffe Nidda Verwaltungs-GmbH, Pfleiderer dritte Erwerbergesellschaft
mbH, Pfleiderer Holzwerkstoffe Nidda GmbH & Co. KG and Pfleiderer dritte Erwerbergesellschaft
mbH & Co. Grundstücksverwaltungs KG (all based in Neumarkt). The acquisition was carried out
by means of a so-called “transferred restructuring”, by which Pfleiderer acquired the assets and
liabilities of “Hornitex Werke Nidda Kunststoff- und Holzwerkstoffplatten GmbH & Co. KG” (asset
deal). First-time consolidation was carried out as of December 31, 2004, so that no earnings of
these companies are included in the consolidated statement of income.
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