DES GB2012 E

{ 147 } DES ANNUAL REPORT 2012 CONSOLIDATED FINANCIAL STATEMENTS Basis of consolidation and consolidation methods The preparation of the consolidated financial statements necessitates the use of estimates and assumptions. These affect the reported amounts of assets, liabilities and contingent liabilities at the balance sheet date, as well as the recognition of income and expenses during the reporting period. The actual amounts can differ from these estimates. Expected cash flows and the discount factor in particular are critical parameters for the measurement of investment properties. The consolidated financial statements as at 31 December 2012 are approved by the Audit Committee of the Super- visory Board on 12 April 2013 and are expected to be approved at the Supervisory Board’s financial statements review meeting on 23 April 2013. Until the consolidated financial statements are adopted there is still a possibility that they may be amended. A detailed list of the companies included in the consolidated financial statements forms part of the notes. The annual financial statements of the consolidated companies were prepared as at 31 December 2012, the reporting date of the consolidated financial statements. Basis of consolidation and consolidation methods BASIS OF CONSOLIDATION SUBSIDIARIES The consolidated financial statements include all subsidiaries in which Deutsche EuroShop AG directly or indirectly holds a majority of voting rights, plus those companies which are joint ventures. As at 31 December 2012, the basis of consolidation comprised, in addition to the parent company, 12 (previous year: 19) fully consolidated domestic and foreign subsidiaries and five (previous year: five) proportionately consoli- dated domestic and foreign joint ventures. With effect from 1 January 2012, Deutsche EuroShop AG acquired 5.1% of the Rathaus-Center Dessau KG, thus taking its shareholding to 100%. The purchase price of €5.9 million was paid in early 2012. In addition, with effect from 1 January 2012, around 11% of the Allee-Center Hamm KG (purchase price €8.9 million) and 0.1% of the Rhein-Neckar-Zentrum KG (purchase price €0.2 million) were acquired, thus increasing the shareholding in each to 100%. The purchase prices were paid at the end of 2011. These acquisitions resulted in an excess of identified net assets acquired over cost of acquisition in the amount of €0.8 million, which was recognised under measurement gains/losses. DES Shoppingcenter GmbH & Co. KG was founded on 23 August 2012 with an investment of €10 thousand. The company’s purpose is to acquire and manage property as well as all transactions associated with this property. Within the scope of the merger agreements of 27 December 2012 and with effect from 31 December 2012, Billstedt-Center Hamburg GmbH & Co. KG, Allee-Center Hamm GmbH & Co. KG, City-Arkaden Wuppertal GmbH & Co. KG, City-Galerie Wolfsburg GmbH & Co. KG, Rathaus-Center Dessau GmbH & Co. KG and Rhein-Neckar-Zentrum GmbH & Co. KG transferred their assets in full to DES Shoppingcenter GmbH & Co. KG including all rights and obligations by dissolution without liquidation as part of a merger by absorption pursuant to sections 2 (1), (4) et seq. and sections 39 et seq. of the Umwandlungsgesetz (UmwG – German Reorganization Act) and were thus merged into the latter. DES Shoppingcenter GmbH & Co. KG thus became the owner of the shopping centers Allee-Center Hamm, Billstedt-Center Hamburg, City-Galerie Wolfsburg, City-Arkaden Wuppertal, Rathaus-Center Dessau and Rhein-Neckar-Zentrum Viernheim.

DES GB2012 E

Pages