DHL 2002 Annual Report Download - page 100

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In accordance with IAS 12, deferred tax assets and
liabilities are calculated by using the tax rates expected to be
enacted when the items reverse. The tax rate of 39.9% applied
to German Group companies comprises the standard tax rate
plus the solidarity surcharge, as well as an average trade tax
rate.Foreign Group companies use their individual income
tax rate to calculate deferred tax items. The income tax rates
applied for foreign companies range from 15% to 48%.
Contingent liabilities
Contingent liabilities represent possible obligations whose
existence will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not
wholly within the control of the enterprise. Contingent
liabilities also include certain obligations that will probably
not lead to an outflow of resources embodying economic
benefits, or where the amount of the outflow of resources
embodying economic benefits cannot be measured with
sufficient reliability. In accordance with IAS 37, contingent
liabilities are not recognized as liabilities.
Consolidation methods
The consolidated financial statements are based on the
IAS annual financial statements of Deutsche Post AG and
its consolidated subsidiaries, which are generally prepared
in accordance with uniform accounting policies as of
December 31, 2002 and audited by independent auditors.
First-time consolidation of subsidiaries uses the
purchase method of accounting in accordance with IAS 22
(Business Combinations). The cost of acquisition of the
purchased interests is eliminated against the proportionate
equity of the subsidiary. Purchased assets and liabilities are
recognized in the consolidated 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.
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Joint ventures are proportionately consolidated in
accordance with IAS 31: assets and liabilities, and income and
expenses, of jointly controlled companies are included in the
consolidated financial statements in proportion to our inter-
est in these companies. Proportionate capital consolidation
and recognition and measurement of goodwill use the same
methods as applied to the consolidation of subsidiaries.
Companies on which the parent can exercise signifi-
cant influence (associates) are carried at equity using the
purchase method of accounting. Any goodwill is reported
under investments in associates.
Intragroup revenue, other operating income and
expenses, as well as receivables, liabilities and provisions
between consolidated companies, are eliminated. Inter-
company profits or losses from intragroup deliveries and
services not realized by sale to third parties are eliminated.
Application of IASs and SIC/ IFRIC
interpretations
The consolidated financial statements of Deutsche Post AG
are based on the IASs and SIC/IFRIC interpretations
required to be applied at the date of their preparation.
In fiscal year 2002, we accounted for the executive
stock option program for the first time on the basis of
IFRS Exposure Draft ED 2: “Share-based Payment”, which
provides for fair value accounting for stock options. This
resulted in a €12 million increase in staff costs. Under the
IASs, the change in the accounting policy applied to the
executive stock option program requires the prior-period
amounts to be restated. This resulted in a retrospective
€6 million increase in staff costs and capital reserves for
fiscal year 2001, accompanied by a corresponding €6 million
reduction in consolidated net profit. Further details of the
executive stock option program can be found in note 33.
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Financial Statements
Notes