DHL 2001 Annual Report Download - page 161

Consolidated Financial Statements
Cash Flow Statement
Explanatory Notes/Review Report
161
Deutsche Post AG, Bonn, has prepared consolidated financial state-
ments for the fiscal year January 1 to December 31, 2001 in accord-
ance with International Accounting Standards (IASs) that qualify as
exempting consolidated financial statements in accordance with
section 292a HGB. We have audited these financial statements and
issued an unqualified opinion.
For information purposes, Deutsche Post AG, Bonn, has prepared
another set of consolidated financial statements (modified consoli-
dated financial statements) based on the exempting consolidated
statements in accordance with section 292a HGB. These financial
statements provide pro forma information about the net assets, finan-
cial position and results of operations of the Group that would have
been reported if the Deutsche Postbank group had not been fully
consolidated in accordance with IAS 27, but had been included as an
associate accounted for at equity, although the requirements for
this do not apply.
In accordance with the terms of our engagement, we have reviewed
the modified consolidated financial statements of Deutsche Post AG,
Bonn, consisting of the income statement, balance sheet and cash
flow statement, but without a statement of changes in equity and
explanatory notes for the period January 1 to December 31, 2001. The
preparation of the modified consolidated financial statements is the
responsibility of the company’s Board of Management. Our respon-
sibility is to issue a review report on these modified consolidated
financial statements based on our review.
We conducted our review of the modified consolidated financial
statements in accordance with the International Standard on Audit-
ing (ISA) applicable to review engagements.This Standard requires
that we plan and perform the review to obtain moderate assurance
as to whether the modified consolidated financial statements are free
of material misstatement. A review is limited primarily to inquiries of
company personnel and reasonableness reviews relating to the pre-
sentation of the net assets, financial position and results of operations
of the Group and thus provides less assurance than an audit. We
have not performed an audit and, accordingly, we do not express an
audit opinion.
Based on our review, we certify that the modified consolidated
financial statements for the year ended December 31, 2001 are in
accordance with the accounting and measurement principles of the
IASs, except for the inclusion of the Deutsche Postbank group at
equity rather than as a fully consolidated company, as required by
IAS 27. The IAS financial statements are not, however, complete,
since the statement of changes in equity and explanatory notes have
not been prepared. In addition, we certify that except for the above
matters, nothing has come to our attention that causes us to believe
that the modified consolidated financial statements contain
material misstatements.
Düsseldorf, February 25, 2002
PwC Deutsche Revision
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Brebeck Menke
Wirtschaftsprüfer Wirtschaftsprüfer
(German Certified (German Certified
Public Accountant) Public Accountant)
The activities of Deutsche Postbank group differ substantially from
the ordinary activities of the other companies in the Deutsche Post
World Net Group. To enable 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 accompanying consolidated financial statements as of Decem-
ber 31, 2001. The Deutsche Postbank group is accounted for in
these financial statements only as a financial investment carried at
equity.
The preparation of the consolidated financial statements of
Deutsche Post World Net including the Deutsche Postbank group at
equity is in agreement with the International Accounting Standards
(IASs) adopted and published by the International Accounting Stan-
dards Committee (IASC) to be applied at the balance sheet date,
and their interpretation by the Standing Interpretations Committee
(SIC).
First-time application of IAS 39 resulted in recognition and mea-
surement changes which are explained in note 6.
The accounting treatment differs from the standards required by
the IASs to the extent that the Deutsche Postbank group was not
fully consolidated, as required by IAS 27, but was accounted for at
equity.
Compared with the full consolidation of the Deutsche Postbank
group as applied to the consolidated financial statements, account-
ing for the Deutsche Postbank group using the equity method has
the following consequences:
•The assets and liabilities of the Deutsche Postbank group are not
recognized in the consolidated balance sheet, and its expenses and
income are not recognized in the consolidated income statement.
•The consolidation adjustments for the full consolidation of
Deutsche Postbank group have not been recognized. Transactions
between the Deutsche Postbank group and the other Group
companies are included in the financial statements. However,
intercompany profits and losses between the Deutsche Postbank
group and the fully consolidated Group companies have been
eliminated as required for the inclusion of associates (SIC-3).
•The investments in the Deutsche Postbank group carried at equity
are reported under long-term investments.
The investment income resulting from accounting for the investment
in Deutsche Postbank group using the equity method is disclosed as
a separate item in net financial income. Accordingly, net financial
income includes the proportionate net profit for the period, income
from the reversal of the negative goodwill of the Deutsche Postbank
group and the effect on income of the continuation of hidden reserves
released as part of first-time consolidation.
Review Report
Explanatory Notes to the Consolidated Financial Statements including
the Deutsche Postbank Group at Equity