DES GB2015 Englisch

Associates In accordance with IAS 28, where Deutsche EuroShop AG can exercise a significant influence but not control over companies, these investments are measured using the equity method. This applied to five companies at the balance sheet date. Investees Investments over which Deutsche EuroShop AG has neither signifi- cant influence nor control are measured at fair value, in line with the provisions of IAS 39. This relates to the stake in Ilwro Holding B.V., Amsterdam. CONSOLIDATION METHODS Under the purchase method, the cost is eliminated against the par- ent 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 and associates are measured using the equity method. The cost of acquiring the investment is recognised here in income at an amount increased or reduced by the changes in equity corresponding to the equity interest of Deutsche EuroShop AG. Intragroup transactions are eliminated as part of the consolidation of intercompany balances and of income and expenses. CURRENCY TRANSLATION The Group currency is the euro (€). The companies located outside the eurozone that are included in the consolidated financial statements are treated as legally independent, but economically dependent, integrated companies. The reporting cur- rency of this company (Polish zloty) therefore deviates from the func- tional currency (euro). Under IAS 21, annual financial statements pre- pared in foreign currencies are translated using the functional currency method, with the result that the balance sheet is to be translated as if the transactions had arisen for the Group itself, as the local currency of the integrated companies is deemed to be a foreign currency for these companies themselves. Monetary values are therefore translated at the closing rate and non-monetary items at the rate that applied at the time of initial rec- ognition. Non-monetary items to be reported at fair value are trans- lated at the closing rate. Items in the consolidated income statement are translated at average rates for the year or, in the event of strong fluctuations, using the rate that applied on the date of the transaction. Any translation differences that may arise if the translation rates of the balance sheet and consolidated income statement differ are rec- ognised in profit or loss. A closing rate of HUF 313.12 (previous year: HUF 314.89) and an aver- age rate of HUF 309.90 (previous year: HUF 308.66) were used in the translation of the separate Hungarian financial statements for Einkaufs- Center Arkaden Pécs KG, Hamburg, from forint to euros. A closing rate of PLN 4.2615 (previous year: PLN 4.2623) and an average rate of PLN 4.1841 (previous year: PLN 4.1843) was taken as a basis for trans- lating the separate financial statements of the Polish property company. Reporting principles The following new or amended standards and interpretations are re- quired to be applied for the first time to the financial years ending on 31 December 2015: 1. Annual Improvements to IFRSs – 2011–2013 Cycle 2. IFRIC 21 – Levies Annual Improvements to IFRS – 2011–2013 Cycle Publication: 12 December 2013 Required to be applied (since 18 December 2014) to financial years beginning on or after 1 January 2015. IFRS 3 Business Combinations The scope of IFRS 3 is clarified: • The establishment of joint arrangements of all kinds is outside the scope of IFRS 3. • The scope excludes only the financial statements of the joint arrangement itself but not the financial statements of the companies participating in it. 149 CONSOLIDATED FINANCIAL STATEMENTS

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