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78 being focused: being better
Effects of Additions to the Consolidated Group on Main Balance Sheet Positions
of Continued Operations:
‘000 euros
Assets
Long-lived assets 62
Inventories 1,116
Trade accounts receivable 2,415
Liabilities
Accruals 83
Other liabilities 1,415
As a result of additions to the consolidated group, revenues from continued operations rose by
10.2 million euros.
Principles of Consolidation
Capital consolidation is accounted for using the purchase accounting method. In this method,
the cost of the acquired interest is offset against the share in equity attributable to the parent
company at the date of acquisition. Any differences are allocated to assets and liabilities of the
affiliate company in proportion to the share in equity held, to a maximum of the proportionate
fair market value, (proportional purchase method). Any remaining differences are capitalized as
goodwill and reviewed for impairment in accordance with SFAS No. 142.
Shares in non-consolidated affiliated companies are valued at acquisition cost. Due to
immateriality, shares in associated companies were not stated using the equity method.
All intercompany accounts receivable and payable, sales, expenses and income, as well
as interim results between consolidated companies are eliminated for consolidation purposes.
Minority interests, including minority interests’ share in profit or loss, are determined on
the basis of equity as of balance sheet cut-off date and reported in the consolidated balance
sheet as adjustment item for minority interests.
Acquistions and Disposals/Discontinued Operations
The affiliated companies Fideris Spanplatten AG, St. Gallen/Switzerland, and Duropal S.A.S.,
Reims/France were formed in fiscal 2002. These companies were consolidated for the first
time as of the date of their formation. Accordingly, the consolidated income statement takes
into account the results of these companies from the date of their formation.
The Insulation Technology and Doors and Windows Business Centers were sold in fiscal
2002. The effects of the sale and deconsolidation of these business centers on the consolidated
balance sheet and consolidated income statement are explained below under IV 16
“Discontinued operations”.