DHL 2000 Annual Report Download - page 141

Cash Flow Statement
(Postbank at Equity)
Comments
Attestation Report
133
Comments on the IAS-based consolidated financial statements including at equity valuation of Deutsche Postbank group
Attestation Report following auditor’s review
Deutsche Post AG, Bonn prepared exempting consolidated financial statements for the
financial year from January 1 to December 31, 2000 according to International Account-
ing Standards (IAS) and in conformity with the statutory provisions of section 292a
HGB. These financial statements were audited by us and carry our unqualified opinion.
For information purposes Deutsche Post AG, Bonn prepared another set of financial
statements (modified consolidated financial statements) based on the exempting
consolidated statements pursuant to section 292a HGB. These financial statements
provide pro forma information about the status of the net assets, financial position
and results of operations of the Group that would have been reported if the Post-
bank group had not been fully consolidated pursuant to IAS 27 but had been in-
cluded in the consolidation as an associated company reported at equity instead,
although the required preconditions for such reporting are not given.
We examined the modified consolidated financial statements of Deutsche Post AG,
Bonn which consisted of an income statement, balance sheet, and cash flow state-
ment, but did not include a statement of changes in equity and explanatory note
disclosures for the period from January 1 to December 31, 2000, in accordance with
the terms of our engagement. The preparation of the modified consolidated financial
statements is the responsibility of the Company’s Managing Board. Our responsibility
is to issue an attestation report on these modified consolidated financial statements
based on our review.
We conducted our review of the modified consolidated financial statements in confor-
mity with the International Standards on Auditing (ISA) applicable to such engagements.
Those standards require that we plan and perform the review to obtain reasonable
assurance about whether the modified financial statements are free of material mis-
statements. Our review was primarily limited to inquiries with employees of the Com-
pany and reasonableness checks as regards the presentation of the net assets, finan-
cial position and results of operations of the Group and, thus, provides less assurance
than an audit. Since we did not conduct an audit we accordingly do not express an
opinion.
As a result of our review we attest that the modified consolidated financial statements
for the year ended December 31, 2000 are in conformity with the valuation and account-
ing principles according to IAS except for the – pursuant to IAS 27 – inadmissible inclu-
sion of the Postbank group in the consolidated financial statements of the Group not
as a fully consolidated company but rather as an associated company valued at equity,
and except for the failure to adjust previous year’s figures concerning initial recognition
of the Securities Special Funds of Postbank group (SIC 12 of IASC), as required under
IAS 8.49. Complete financial statements under IAS, however, are not given, since the
statement of changes in equity and explanatory note disclosures are missing. Further-
more, we attest that except for the above matters, we did not become aware of any
circumstances that would lead us to believe that the modified consolidated financial
statements contain any material misrepresentations or irregularities.
Düsseldorf, March 26, 2001
PwC Deutsche Revision
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
The activities of Deutsche Postbank group differ substantially from the ordinary activities
of other companies included in the Deutsche Post Group. In order to provide a clearer
presentation of the net assets, financial position and results of operations of the Group,
the Deutsche Postbank group was excluded from full consolidation in the consolidated
financial statements as of December 31, 2000 presented above. Deutsche Postbank group
is accounted for in these statements only as a financial investment valued in accordance
with the equity method.
The preparation of the consolidated financial statements of Deutsche Post World Net
including Deutsche Postbank group in accordance with the equity method is in agree-
ment with the International Accounting Standards (IAS) adopted and published by the
International Accounting Standards Committee (IASC) which are to be applied manda-
tory as at the balance sheet date, and their interpretation by the Standing Interpretations
Committee (SIC). Standards not as yet in force but whose early application is recom-
mended by the IASC have additionally been observed. The only deviation from IAS
provisions relates to IAS 27 which would require full consolidation of Deutsche Post-
bank group; instead, the equity method was applied.
Also, analogously to the consolidated financial statements, the previous year’s figures
concerning the initial recognition of the Securities Special Funds of Deutsche Postbank
group were not adjusted as required under IAS 8.49; such adjustment of previous year’s
figures would have resulted in an € 181 million increase in the results from equity
valuation of Deutsche Postbank group.
In comparison to full consolidation of Deutsche Postbank group as carried out in the
consolidated financial statements, the following consequences result from inclusion of
Deutsche Postbank group on the basis of the equity method:
• Asset values and liabilities of Deutsche Postbank group are not included in the con-
solidated balance sheet, its expenses and income are not included in the consolidated
income statement.
• The consolidation entries carried out within the scope of full consolidation of Deutsche
Postbank group have not been taken into account. Business relationships between
Deutsche Postbank group and the other Group companies are included in the finan-
cial statements; however, in accordance with the provisions under SIC 3 relating to the
inclusion of associated companies, intragroup results between Deutsche Postbank group
and the fully consolidated Group companies have been eliminated.
• Financial assets include the shares in Deutsche Postbank group which are valued at
equity.
The income resulting from equity valuation of the investment in Deutsche Postbank group
is disclosed as a separate item in the financial results. Accordingly, the financial result
reflects the prorated period result, income from the release of the negative goodwill of
Deutsche Postbank group and the income effect from the continuation of hidden re-
serves released within the scope of initial consolidation.
Klotzbach
Wirtschaftsprüfer
(German Certified
Public Accountant)
Menke
Wirtschaftsprüfer
(German Certified
Public Accountant)