Mercedes 2013 Annual Report Download - page 191

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F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Measurement. The consolidated financial statements have
been prepared on the historical cost basis with the exception
of certain items such as available-for-sale financial assets,
derivative financial instruments, hedged items, and pensions
and similar obligations. The measurement models applied
to those exceptions are described below.
Principles of consolidation. The consolidated financial
statements include the financial statements of Daimler AG and,
in general, the financial statements of Daimler AG’s sub-
sidiaries, including special purpose entities which are directly
or indirectly controlled by Daimler AG. Control means the
power, directly or indirectly, to govern the financial and operat-
ing policies of an entity so that the Group obtains benefits
from its activities.The financial statements of consolidated sub-
sidiaries are generally prepared as of the reporting date of
the consolidated financial statements. The financial statements
of Daimler AG and its subsidiaries included in the conso-
lidated financial statements are prepared using uniform recog-
nition and measurement principles. All significant inter-
company accounts and transactions relating to consolidated
subsidiaries and consolidated special purpose entities
are eliminated.
Equity investments in which Daimler has the ability to exercise
significant influence over the financial and operating policies
of the investee (associated companies) and entities over whose
activities Daimler has joint control with a partner (joint
ventures) are generally included in the consolidated financial
statements using the equity method.
Subsidiaries, associated companies and joint ventures whose
business is non-active or of low volume and that are not
material for the Group and the fair presentation of financial
position, liquidity and capital resources, and profitability
are generally measured at amortized cost in the consolidated
financial statements. The aggregate balance sheet totals
of these subsidiaries would amount to approximately 1% of the
Group’s balance sheet total; the aggregate revenues and
the aggregate profit/loss before income taxes amount to approx-
imately 1% of Group revenue and profit before income taxes.
Table  F.10 shows the composition of the Group.
Business combinations are accounted for using
the purchase method.
Changes in equity interests in Group subsidiaries that reduce
or increase Daimler’s percentage ownership without loss
of control are accounted for as an equity transaction between
owners.
As an additional funding source, Daimler transfers finance
receivables, in particular receivables from the leasing
and automotive business, to special purpose entities. Daimler
thereby principally retains the significant risks of the
transferred receivables. According to IAS 27 Consolidated
and Separate Financial Statements and the Standing Inter-
pretations Committee (SIC) Interpretation 12 Consolidation –
Special Purpose Entities, these special purpose entities
have to be consolidated by the transferor. The transferred finan-
cial assets remain in Daimler’s consolidated statement
of financial position.
Composition of the Group
2013 2012
Consolidated subsidiaries
Germany 49 50
International 271 287
Subsidiaries accounted for at cost
Germany 35 40
International 57 69
Subsidiaries accounted for
using the equity method
Germany 01
International 33
Associated companies and joint ventures
Germany 21 22
International 38 41
474 513
F.10