Access America 2005 Annual Report Download - page 13

Consolidation scope
The consolidated financial
statements of Mondial Assistance
Group comprise the annual
accounts of Elmonda and
subsidiaries, which are prepared in
accordance with the accounting
and valuation principles of the
Mondial Assistance Group.
Consolidated subsidiaries are
listed further in the notes to the
consolidated financial statements.
The stake in ISAAF Mondial
Assistance, Morocco, has been
further reduced in 2005.
In Luxembourg, the operation of
Sacnas RE has been closed down
and was liquidated. In Chile,
Compania de Asistencia
Sudamericana S.A. and CAS
Brokers S.A. were sold on
November 18th, 2005. Mondial
Assistance Germany GmbH,
Munich increased its interest in
Rehacare GmbH, Munich to a
majority participation.
Consolidation principles
Subsidiaries have been recorded
according to the full consolidation
method when subject to the
majority control of the Mondial
Assistance Group.
All intra-group transactions and
balances have been eliminated.
Interests in joint ventures are
recognised by including the
accounts using the proportionate
consolidation basis, i.e. by
including in the accounts under
the appropriate financial statement
headings the Group's proportion
of the joint venture revenues,
costs, assets and liabilities.
Equity investments in which the
Mondial Assistance Group owns at
least 20% of the voting rights are
accounted for using the equity
method, except for investments in
which the Mondial Assistance
Group is not able to exercise
significant influence, in which case,
the cost method is used.
Investments in which the company
owns less than 20 %, are ccounted
for under the cost method.
The equity and net income
attributable to minority
shareholders' interests are
diclosed separately in the balance
sheet and income statement
respectively.
The purchase method of accounting
is used for acquired businesses.
Companies acquired or disposed
of during the year are included in
the consolidated financial
statements from the date of
acquisition or to the date of
disposal respectively.
Foreign currency translation
The Group’s reporting currency is
the Euro (€). The functional
23
Notes to the consolidated
financial statements of
Mondial Assistance Group
Exchange rates
of principal currencies
(against 1 euro) 2005 2004
Balance Sheet year end rate
Australia (AUD) 1.6109 1.7489
Japan (JPY) 138.9000 139.8300
Brazil (BRL) 2.7515 3.6206
United Kingdom (GBP) 0.6853 0.7071
Switzerland (CHF) 1.5551 1.5437
USA (USD) 1.1797 1.3640
(against 1 euro) 2005 2004
Income Statement average rate
Australia (AUD) 1.6322 1.6904
Japan (JPY) 136.8628 134.4559
Brazil (BRL) 2.8979 3.6279
United Kingdom (GBP) 0.6839 0.6787
Switzerland (CHF) 1.5482 1.5660
USA (USD) 1.2443 1.2438
22
Cash Flow Statement of Mondial Assistance Group
for the Financial Year 2005
in thousand EUR 2005 2004
Net result of the period 47 773 23 121
Change in unearned premiums reserve 50 615 32 614
Change in claims and claim handling costs 5 181 15 046
Change in other technical reserves 4 218 1 094
Change in deferred acquisition costs -5 209 -596
Change in deposits held by others under reinsurance business assumed -3 456 -2 116
Change in deposits held under reinsurance business ceded 300 -111
Change in accounts receivable / payable on reinsurance business -9 015 -4 086
Change in loans and advances to banks and customers -13 644 603
Change in liabilities to banks and customers 4 972 477
Change in other receivables and liabilities 29 337 -37 783
Change in deferred tax assets / liabilities -4 477 -2 501
Adjustment for investment income/expenses not involving movements of cash 0 0
Adjustments to reconcile amortization of goodwill -17 091 2 577
Depreciations 4 015 10 370
Other -2 675 -1 938
Cash flow from operating activities 90 844 36 771
Change in securities available for sale* -59 333 -45 082
Change in real estate -282 3 018
Change in other investments 4 254
Change in cash and cash equivalents from the acquisition of cons. affiliated companies 2 022 34
Other 2 072 -11 059
Cash flow from investing activities -55 517 -52 835
Cash inflow from capital increases 245 51
Dividend payouts -16 551 -19 946
Other from shareholder equity and minority interests 3 632 -1 365
Cash flow from financing activities -12 674 -21 260
Change in cash and cash equivalents 22 653 -37 324
Cash and cash equivalents at beginning of period 135 859 173 183
Cash and cash equivalents at end of period 158 512 135 859
* including unreal. loss/gain reserves on investments available for sale