DHL 2001 Annual Report Download - page 110

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A list of significant subsidiaries, joint ventures
and associates is presented in note 47. A complete
list of Deutsche Post AG’s shareholdings has been
filed with the commercial register of the Bonn Local
Court.
4. Foreign currency translation
Based on the functional currency method, the
financial statements of consolidated companies pre-
pared in foreign currencies are translated into euros
(the reporting currency) in accordance with IAS 21
(The Effects of Changes in Foreign Exchange Rates).
The foreign currency of all foreign companies of
Deutsche Post World Net is the local currency, as
the companies operate independently in terms of
their financial and business activities and organi-
zational structures.Assets and liabilities are there-
fore translated at the middle rates prevailing at
the consolidated closing date, while income and
expenses are generally translated at average rates
for the year. The resulting exchange differences are
taken directly to equity.
Goodwill resulting from the capital consolida-
tion of foreign companies is translated at the rates
prevailing at the transaction dates and amortized
over its useful life.
The following exchange rates were generally
applied to foreign currency translation in the Group
(see table on page 111).
The carrying amounts of non-monetary assets
recognized in the case of consolidated companies
operating in hyperinflationary economies are indexed
in accordance with IAS 29 and thus reflect the cur-
rent purchasing power at the balance sheet date.
In accordance with IAS 21, receivables and cash
and cash equivalents in the single-entity financial
statements of consolidated companies that have been
prepared in local currencies are translated at the
buying rate at the balance sheet date, while foreign
currency liabilities are translated at the selling rate.
Exchange differences are recognized in other oper-
ating income and expenses in the income statement.
5. Consolidation methods
The consolidated financial statements are based on
the annual financial statements of Deutsche Post AG
and its consolidated subsidiaries, which are gener-
ally prepared in accordance with uniform account-
ing policies as of December 31, 2001 and audited
and certified by independent auditors.
First-time consolidation of subsidiaries uses the
purchase method of accounting in accordance with
IAS 22 (Business Combinations). The cost of acqui-
sition of the purchased interests is eliminated against
the proportionate equity of the subsidiary. Purchased
assets and liabilities are recognized in the consoli-
dated balance sheet at their fair values where these
are attributable to Deutsche Post World Net. Any
remaining excess of cost of acquisition over net assets
acquired is recognized as goodwill in intangible
assets and amortized over its useful life. In accord-
ance with IAS 22.64 (revised 1998), negative good-
will from first-time-consolidation is deducted from
the Group’s intangible assets. Income from the
reversal of negative goodwill is recognized in the
income statement under other operating income.
Nedlloyd
Road Cargo
N.V.*
Deconsolidations
Deutsche Post
Wert Logistik
GmbH*
in €m
* Amounts at the date of deconsolidation. There were no material deconsolidation gains.
Assets 5 3
Liabilities and provisions 3 4
Revenue 2 1
Loss for the period after taxes -11 -2