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ePaper created 2012-04-27, 18:43:33 | version 1.23.1
Joint ventures On 30 August 2011, Deutsche EuroShop AG acquired 50% of the shares in Einkaufscenter Allee-Center Magdeburg at a purchase price of € 118.7 million. The transfer of benefits and encumbrances took place on 1 October 2011. The purchase price was paid at the start of October. The first-time proportionate consolidation of the company revealed an excess of identified net assets acquired over cost of acquisition of € 0.6 mil- lion, which was recognised under measurement gains/losses. In the period under review, the company generated revenue of € 2.0 million and a profit of € 2.8 million (according to IFRS). If the acquisition date had been 1 January 2011, revenues of € 7.8 million and profit of € 8.1 million would have flowed into the consolidated income statement. in € thousand Carrying amounts Fair value Property assets 118,790 118,790 Cash and cash equivalents 634 634 Receivables and other assets 164 164 Deferred taxes -233 -233 Provisions -47 -47 Other liabilities -168 -168 Net assets acquired 119,140 119,140 Purchase price -118,583 -118,583 Excess of identified net assets acquired over cost of acquisition 557 557 The fair values of the assets and liabilities of the acquisitions recognised were calculated on the basis of a property valuation and the application of a cost-model approach. Associates In accordance with IAS 28, where Deutsche EuroShop AG can exercise a significant influence but not control over companies these are measured using the equity method, irrespective of the interest held in these companies. Six companies fall into this category as at the balance sheet date. Investees Investments over which Deutsche EuroShop AG has neither significant influence nor control are measured at fair value, in line with the provi- sions of IAS 39. This includes the investment in Ilwro Joint Venture Sp. z o.o., Warsaw. Consolidation methods For purchase accounting, the cost is eliminated against the parent company’s interest in the re-valued equity of the subsidiaries at the date of acquisition or initial consolidation. Any remaining excess of identified net assets acquired over cost of acquisition is recognised as goodwill in intangible assets. Any excess of identified net assets acquired over cost of acquisition is recognised in income following a further reassessment. Joint ventures are included proportionately in the consolidated financial statements in accordance with IAS 31. Alternatively, the equity method is also permissible. The assets and liabilities and the income and expenses of jointly controlled companies are included in the consolidated financial statements according to the interest held in these companies. Proportionate consolidation and accounting for goodwill follows the same principles applied to the consolidation of subsidiaries. For associates measured in the consolidated financial statements using the equity method, the cost of the investment is recognised in income at an amount increased or reduced by the changes in equity corresponding to the equity interest of Deutsche EuroShop. Intragroup transactions are eliminated as part of the consolidation of intercompany balances and of income and expenses. 34 DES Annual Report 2011 CONSOLIDATED FINANCIAL STATEMENTS basis of consolidation and consolidation method