PDF, 3.2 MB - Pfleiderer AG
PDF, 3.2 MB - Pfleiderer AG 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. 74
The activities of the Poles & Towers Business Center and the water systems Business Unit were sold during fiscal 2004. The impact of the sale and deconsolidation of these segments on the consolidated balance sheet and consolidated statement of income is discussed below under IV. 17 “Discontinued operations”. The balance sheet items of the residual Wind Energy Business Unit, two further companies engaged in the former insulating materials activities and a company engaged in the former Poles & Towers activities in the USA are reported separately in the balance sheet as discontinued operations. Use of Estimates The preparation of the consolidated financial statements requires the Board of Management to make estimates and assumptions, which affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and the disclosure of contingent liabilities. The actual results may vary from these estimates. Foreign Currency Translation The financial statements of the subsidiaries of Pfleiderer AG were prepared in their functional currency, which was generally their local currency. With the exception of equity, which was translated at the exchange rate valid at the time of the respective transaction, all balance sheet accounts were translated to the reporting currency (euros) applying the exchange rates in force as of the end of the reporting period. Income and expense accounts were translated at the weighted average rates for the fiscal year. Any differences resulting from the foreign currency translation are recorded in a separate item under equity (“Other comprehensive income/adjustment item from foreign currency translation”) until the group company is sold or liquidated. Average rate at balance sheet date (euro 1 =) Dec. 31, 2004 Dec. 31, 2003 United Kingdom (GBP) 0.7089 0.7070 Poland (PLN) 4.0852 4.7255 Romania (ROM) 38,347.8000 40,146.3000 Russia (RUB) 37.7300 36.8800 Switzerland (CHF) 1.5450 1.5590 Slovenia (SIT) 235.3710 233.8310 Czech Republic (CZK) 30.4300 32.5500 Hungary (HUF) 245.6250 262.1150 USA (USD) 1.3606 1.2610 Ukraine (UAH) 7.0334 6.5137 The main foreign currencies for the Group are as follows: 75 FINANCIAL STATEMENTS/NOTES PFLEIDERER GROUP
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The activities of the Poles & Towers Business Center and the water systems Business Unit were<br />
sold during fiscal 2004. The impact of the sale and deconsolidation of these segments on the<br />
consolidated balance sheet and consolidated statement of income is discussed below under IV. 17<br />
“Discontinued operations”.<br />
The balance sheet items of the residual Wind Energy Business Unit, two further companies<br />
engaged in the former insulating materials activities and a company engaged in the former Poles<br />
& Towers activities in the USA are reported separately in the balance sheet as discontinued<br />
operations.<br />
Use of Estimates<br />
The preparation of the consolidated financial statements requires the Board of Management to<br />
make estimates and assumptions, which affect the reported amounts of assets, liabilities, revenues<br />
and expenses in the consolidated financial statements and the disclosure of contingent liabilities.<br />
The actual results may vary from these estimates.<br />
Foreign Currency Translation<br />
The financial statements of the subsidiaries of <strong>Pfleiderer</strong> <strong>AG</strong> were prepared in their functional<br />
currency, which was generally their local currency. With the exception of equity, which was<br />
translated at the exchange rate valid at the time of the respective transaction, all balance sheet<br />
accounts were translated to the reporting currency (euros) applying the exchange rates in<br />
force as of the end of the reporting period. Income and expense accounts were translated at the<br />
weighted average rates for the fiscal year. Any differences resulting from the foreign currency<br />
translation are recorded in a separate item under equity (“Other comprehensive income/adjustment<br />
item from foreign currency translation”) until the group company is sold or liquidated.<br />
Average rate at balance sheet date (euro 1 =) Dec. 31, 2004 Dec. 31, 2003<br />
United Kingdom (GBP) 0.7089 0.7070<br />
Poland (PLN) 4.0852 4.7255<br />
Romania (ROM) 38,347.8000 40,146.3000<br />
Russia (RUB) 37.7300 36.8800<br />
Switzerland (CHF) 1.5450 1.5590<br />
Slovenia (SIT) 235.3710 233.8310<br />
Czech Republic (CZK) 30.4300 32.5500<br />
Hungary (HUF) 245.6250 262.1150<br />
USA (USD) 1.3606 1.2610<br />
Ukraine (UAH) 7.0334 6.5137<br />
The main foreign currencies for the Group are as follows:<br />
75<br />
FINANCIAL STATEMENTS/NOTES PFLEIDERER GROUP
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