DHL 2012 Annual Report Download - page 164

Pending legal proceedings in which the Group is involved are
disclosed in Note . e outcome of these proceedings could
have a signicant eect on the net assets, nancial position and
results of operations of the Group. Management regularly analyses
the information currently available about these proceedings and
recognises provisions for probable obligations including estimated
legal costs. Internal and external legal advisers participate in mak-
ing this assessment. In deciding on the necessity for a provision,
management takes into account the probability of an unfavourable
outcome and whether the amount of the obligation can be esti-
mated with sucient reliability. e fact that an action has been
launched or a claim asserted against the Group, or that a legal dis-
pute has been disclosed in the Notes, does not necessarily mean
that a provision is recognised for the associated risk.
All assumptions and estimates are based on the circum-
stances prevailing and assessments made at the balance sheet
date. For the purpose of estimating the future development of the
business, a realistic assessment was also made at that date of the
economic environ ment likely to apply in the future to the dierent
sectors and regions in which the Group operates. In the event of
developments in this general environment that diverge from the
assumptions made, the actual amounts may dier from the esti-
mated amounts. In such cases, the assumptions made and, where
necessary, the carrying amounts of the relevant assets and liabil-
ities, are adjusted accordingly.
At the date of preparation of the consolidated nancial state-
ments, there is no indication that any signicant change in the
assumptions and estimates made will be required, so that on the
basis of the information currently available it is not expected that
there will be any signicant adjustments in nancial year  to
the carrying amounts of the assets and liabilities recognised in the
nancial statements.
 Consolidation methods
e consolidated nancial statements are based on the 
nancial statements of Deutsche Post  and the subsidiaries, joint
ventures and associates included in the consolidated nancial
statements, prepared in accordance with uniform accounting pol-
icies as at  December  and audited by independent auditors.
Acquisition accounting for subsidiaries included in the
consolidated nancial statements uses the purchase method of
accounting. e cost of the acquisition corresponds to the fair
value of the assets given up, the equity instruments issued and the
liabilities incurred or assumed at the transaction date. Acquisition-
related costs are recognised as expenses. Contingent consideration
is recognised at fair value at the date of initial consolidation.
Joint ventures are proportionately consolidated in accord-
ance with  . Assets and liabilities, as well as income and
expenses, of jointly controlled companies are included in the con-
solidated nancial statements in proportion to the interest held in
these companies. Proportionate acquisition accounting as well as
recognition and measurement of goodwill use the same methods
as applied to the consolidation of subsidiaries.
Companies on which the parent can exercise signicant
inuence (associates) are accounted for in accordance with the
equity method using the purchase method of accounting. Any
goodwill is recognised under investments in associates.
In the case of step acquisitions, the equity portion previ-
ously held is remeasured at the fair value applicable on the date of
acquisition and the resulting gain or loss recognised in prot or loss.
Intra-group revenue, other operating income, and expenses
as well as receivables, liabilities and provisions between consoli-
dated companies are eliminated. Intercompany prots or losses
from intra-group deliveries and services not realised by sale to
third parties are eliminated.
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