Notes to the Consolidated Financial Statements
Accounting principles
General information
The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and with supplementary provisions of German commercial law applicable under Section 315a (1) of the German Commercial Code.
Alongside the Consolidated Statement of Earnings, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet and the Consolidated Statement of Cash Flows, the Consolidated Financial Statements also include a Consolidated Statement of Changes in Equity. Segment reporting is provided in these Notes.
For purposes of clarity, a number of items are combined in the Statement of Earnings and in the Balance Sheet. These items are broken down into their constituents and commented on elsewhere in these Notes. The Statement of Earnings is presented using the nature of expense method of analysis.
The Consolidated Financial Statements are presented in euros.
The Consolidated Financial Statements relate to the 2009 fiscal year, comprising the reporting period from January 1 to December 31, 2009. Corresponding prior-year figures are restated where necessary due to early application of IFRIC 15.
The Executive Board of HOCHTIEF Aktiengesellschaft released the financial statements for publication on February 16, 2010. They will be approved at the Supervisory Board meeting on March 18, 2010.
Basis of consolidation
The Consolidated Financial Statements include HOCHTIEF Aktiengesellschaft and all significant domestic and foreign subsidiaries in which it directly or indirectly holds the majority of voting rights. This generally goes hand in hand with a majority shareholding. In the case of two subsidiaries included in the Consolidated Financial Statements, HOCHTIEF Aktiengesellschaft is not the majority shareholder but holds the majority of voting rights by virtue of a pooling agreement. One company is consolidated by virtue of de facto control. Significant associates and jointly controlled entities are accounted for using the equity method.
Holdings in subsidiaries or associated companies or jointly controlled entities deemed to be of minor significance from a Group perspective are not consolidated and are accounted for in accordance with IAS 39.
The combined list of subsidiaries, associates and other equity interests held by the HOCHTIEF Group and HOCHTIEF Aktiengesellschaft (pursuant to Sections 285 (11) and 313 (2) 1-4 of the German Commercial Code (HGB)) is published in the electronic Bundesanzeiger (Federal Official Gazette). The main consolidated subsidiaries and equity-method investments and other participating interests are listed on pages 192 and 193.
A number of the subsidiaries included in the Consolidated Financial Statements make partial use of the exempting provisions in either Section 264 (3) or Section 264b of the German Commercial Code. A list of the companies that make use of these exemptions is included on page 191.
The Consolidated Financial Statements as of December 31, 2009 include HOCHTIEF Aktiengesellschaft and a total of 55 German and 357 foreign consolidated companies. The number of consolidated companies showed a net increase of 14 over the previous year. Three German and 50 foreign companies were consolidated for the first time in 2009. Most of these are in the HOCHTIEF Asia Pacific division (36) or the HOCHTIEF Americas division (12). The majority are project companies.