Access America 2007 Annual Report Download - page 43

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Consolidation scope
The consolidated financial statements of Mondial Assistance Group comprise the annual accounts of Mondial Assistance AG 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. In 2007, France Secours
International Assistance SA, Mondial Assistance France SA and Société de Services Communs merged with Mondial Assistance
S.A.S France and FS2A merged with FRAGONARD ASSURANCE.
In 2007, the following new companies were founded and integrated in the Mondial Assistance Group: Mondial Services (India)
Private Limited (IN), Mondial Assistance France Services à la Personne (FR), Mondial Servicios S.A. de C.V. (MX) and Mondial
Mexico S.A. de C.V. (MX), Mondial Assistance Russia (RU).
In 2007, the following companies were acquired and fully integrated into Mondial Assistance: Medvantis (CH) and Jefferson
Insurance Company (US). Additionally in 2007, Mondial Assistance Deutschland GmbH changed from 50% proportional
consolidation and RehaCare from at equity valuation to being fully consolidated.
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 equity consolidation basis. 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. Participations in
which the company owns less than 20 % are accounted for under the cost method.
The equity and net income attributable to minority shareholders' interests are disclosed separately in the balance sheet and
income statement respectively. The purchase method of accounting is used for acquired businesses, including entities under
common control of Mondial Assistance AG’s ultimate holding company. 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 currency for each Group company is the currency of the
environment where the enterprise carries on its activities. Assets and liabilities are translated at the closing rate on the
balance sheet date. Expenses and income are translated at the annual average rate from the functional currency into
the reporting currency. Translation differences between the functional currency and reporting currency, including those arising in
the process of equity consolidation, are taken to shareholders’ equity without affecting earnings. Translation differences between
the transaction currency and functional currency are reported in earnings.
Exchange rates of principal currencies
BALANCE SHEET YEAR END RATE
(against 1 euro) 2007 2006
Australia (AUD) 1.6757 1.6691
Japan (JPY) 164.9300 156.9300
Brazil (BRL) 2.6217 2.8133
United Kingdom (GBP) 0.7334 0.6715
Switzerland (CHF) 1.6547 1.6069
USA (USD) 1.4721 1.3170
INCOME STATEMENT AVERAGE RATE
(against 1 euro) 2007 2006
Australia (AUD) 1.6351 1.6669
Japan (JPY) 161.2478 146.0642
Brazil (BRL) 2.6648 2.7327
United Kingdom (GBP) 0.6846 0.6818
Switzerland (CHF) 1.6427 1.5731
USA (USD) 1.3705 1.2557
Notes to the consolidated financial statement
Notes to the consolidated financial statements
of Mondial Assistance Group
33