DHL 2008 Annual Report Download - page 142

Deutsche Post World Net Annual Report 2008
5 Restatements of prior-period amounts
In accordance with  ., the e ects of foreign currency
hedging are reported under net  nance costs/net  nancial income
on a net basis, as this better re ects the economic substance of the
transactions.
Clarity of the cash  ow statement was improved. Further
information can be found in Note 50.  e prior-year  gures were
restated accordingly.
 e method of reporting income tax provisions and income
tax liabilities was also changed.  ey are now shown on a combined
basis as income tax obligations.  e prior-year  gures were restated
accordingly.
During financial year , Deutsche Postbank Group
changed its method of measuring building  nance loans reported
at fair value by introducing additional measurement parameters.
 is resulted in an optimisation of the procedure for calculating
fair value.  e retrospective adjustments to net pro t required led
to changes in loans and advances to customers, deferred taxes and
retained earnings.
Restatements of prior-year fi gures
€ m 2007 Adjustments 2007
restated
Restatement of
Deutsche Postbank Group fi gures
Deferred tax assets 1,020 +20 1,040
Receivables and other securities
from fi nancial services
(loans and advances to customers) 193,986 – 66 193,920
Retained earnings 8,976 – 23 8,953
Minority interest 2,801 – 23 2,778
Profi t/loss from
discontinued operations
Consolidated net profi t for the period 1,885 – 12 1,873
of which attributable
to Deutsche Post AG shareholders 1,389 – 6 1,383
of which attributable to minorities 496 – 6 490
Reclassifi cations
Income tax provisions 334 – 334 0
Income tax liabilities 139 – 139 0
Income tax obligations – + 473 473
In keeping with the presentation of the Deutsche Postbank
Group as a discontinued operation in accordance with  , all
amounts in the income statement relating to Deutsche Postbank
Group, both for the year under review and for the previous year,
were reclassi ed and reported under pro t/loss from discontinued
operations. Further details can be found in Note 21.
6 Currency translation
 e  nancial statements of consolidated companies prepared
in foreign currencies are translated into euros  in accordance with
  using the functional currency method.  e functional cur-
rency of foreign companies is determined by the primary economic
environment in which they mainly generate and use cash. Within
the Group, the functional currency is predominantly the local cur-
rency. In the consolidated  nancial statements, assets and liabili-
ties are therefore translated at the closing rates, whilst income and
expenses are generally translated at the monthly closing rates.  e
resulting currency translation di erences are taken directly to equity.
In  nancial year , currency translation di erences amounting to
  million (previous year:   million) were recognised directly
in equity (see also the statement of changes in equity).
Goodwill arising from business combinations a er  January
 is treated as an asset of the acquired company and carried in
the functional currency of the acquired company accordingly.
 e exchange rates for the currencies that are signi cant for
the Group were as follows:
Closing rates Average rates
Currency Country
2007
EUR 1 =
2008
EUR 1 =
2007
EUR 1 =
2008
EUR 1 =
USD USA 1.4708 1.40920 1.37145 1.474175
CHF Switzerland 1.65708 1.48967 1.64364 1.579211
GBP UK 0.73558 0.97230 0.68441 0.80463
SEK Sweden 9.41621 10.92292 9.25393 9.687032
 e carrying amounts of non-monetary assets recognised in
the case of consolidated companies operating in hyperin ationary
economies are generally indexed in accordance with   and thus
re ect the current purchasing power at the balance sheet date.
In accordance with  , receivables and liabilities in the
single-entity  nancial statements of consolidated companies that
have been prepared in local currencies are translated at the closing
rate as at the balance sheet date. Currency translation di erences are
recognised in other operating income and expenses in the income
statement. In  nancial year , income of   million (previous
year:   million) and expenses of   million (previous year:
  million) resulted from currency translation di erences. In con-
trast, currency translation di erences relating to net investments in
a foreign operation are recognised in equity.
7 Accounting policies
 e consolidated  nancial statements are prepared on the
basis of historical costs, with the exception of speci c  nancial
instruments to be recognised at their fair value.
Revenue and expense recognition
Revenue and income from banking transactions, as well as
other operating income, is generally recognised when services are
rendered, the amount of revenue and income can be reliably meas-
ured and in all probability the economic bene ts from the trans-
actions will  ow to the Group. Operating expenses are recognised
in the income statement when the service is utilised or when the
expenses are incurred.
Intangible assets
Intangible assets are measured at amortised cost. Intangible
assets reported include internally generated and purchased intangi-
ble assets and purchased goodwill.
Internally generated intangible assets are capitalised at cost,
if it is probable that their production will generate an in ow of future
economic bene ts and the costs can be reliably measured. In the
Group, this concerns internally developed so ware. If the criteria
for capitalisation are not met, the expenses are recognised immedi-
ately in the income statement in the year in which they are incurred.
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