Food Lion 2008 Annual Report Download - page 72
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Please find page 72 of the 2008 Food Lion annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to the Financial Statements
1. General Information
Delhaize Group’s (also referred to, with our consolidated and associated companies, except where the context otherwise requires, as “we,” “us,” “our,” “the
Group” and “the Company”) principal operational activity is the operation of food supermarkets in North America, Europe and Southeast Asia. The Group’s sales
network also includes other store formats such as proximity stores and specialty stores. In addition to food retailing, Delhaize Group engages in food wholesaling
to affiliated stores in its sales network and in retailing of non-food products such as pet products.
The Company is a limited liability company incorporated and domiciled in Belgium, with its shares listed on Euronext Brussels and on the New York Stock
Exchange (“NYSE”).
The consolidated financial statements for the year ended December 31, 2008 as presented in this annual report were prepared under the responsibility of the
Board of Directors and authorized for issue by the Board of Directors on March 11, 2009 subject to approval of the statutory non-consolidated accounts by the
shareholders at the Ordinary General Meeting to be held on May 28, 2009. In compliance with Belgian law, the consolidated accounts will be presented for
informational purposes to the shareholders of Delhaize Group at the same meeting. The consolidated financial statements are not subject to amendment except
conforming changes to reflect decisions, if any, of the shareholders with respect to the statutory non-consolidated financial statements affecting the consolidated
financial statements.
2. Summary of Significant Accounting Policies
The principle accounting policies applied in the preparation of these consolidated financial statements are described below. These policies have been consist-
ently applied to all financial years presented, unless stated otherwise.
The comparative income statement has been re-presented as if the operation presented as discontinued operations during the current period had been discon-
tinued from the start of the comparative period (see Note 5).
Basis of Preparation
The consolidated financial statements comprise the financial statements of Delhaize Group and its subsidiaries as of December 31, 2008 except for the Delhaize
Group’s U.S. subsidiaries for which the fiscal year ends the Saturday closest to December 31. Consequently, the consolidated results of Delhaize Group for 2008,
2007 and 2006 include the results of operations of its U.S. subsidiaries for the 53 weeks ended January 3, 2009, 52 weeks ended December 29, 2007 and 52
weeks ended December 30, 2006, respectively.
Delhaize Group’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and as adopted by the European Union (EU). The only difference between the effective IFRS as issued by the IASB
and adopted by the EU relates to certain paragraphs of IAS 39 Financial Instruments: Recognition and Measurement, which are not mandatory applicable
in the EU (so-called “carve-out”). Delhaize Group is not affected by the carve-out and therefore for the Group there is no difference between the effective IFRS as
issued by the IASB and adopted by EU. We further refer to our comments made in connection with Changes in Accounting Policies and Disclosures and Standards
and Interpretations issued but not yet effective.
These financial statements have been prepared under the historical cost convention except for derivative financial instruments and available-for-sale financial
assets that have been measured at fair value, as disclosed in the corresponding notes. Assets and disposal groups classified as held for sale have been meas-
ured at the lower of carrying value and fair value less costs to sell.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise
its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assump-
tions and estimates are significant to the consolidated financial statements are disclosed further below.
Principles of Consolidation
Subsidiaries are entities over which the Group has - directly or indirectly - the power to govern the financial and operating policies, which is generally - and for
Delhaize Group in all cases - accompanying a shareholding of more than half of the voting rights. The existence and effect of potential voting rights that would
be exercisable or convertible at year-end, if any, are considered when assessing whether the Group controls another entity. All subsidiaries are fully consolidated
from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date such control ceases. For a list of
all subsidiaries see Note 42.
Joint ventures are entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic,
financial and operating decisions. Joint ventures are proportionally consolidated from the date joint control is established, until such joint control ceases (see
Note 42).
The Group currently holds no investments in entities over which Delhaize Group has significant influence but no control (associates).
The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. Accounting
policies of subsidiaries or joint ventures have been changed, where necessary, to ensure consistency with the policies adopted by the Group.
All intragroup balances, income and expenses and unrealized gains and losses resulting from intragroup transactions are eliminated in full when preparing
the consolidated financial statements.
Minority interests (also referred to as “Non Controlling Interest”) represent the portion of profit or loss and net assets that is not held by the Group and are pre-
sented separately in the consolidated income statement and within equity in the consolidated balance sheet, separately from the parent shareholders’ equity.
Acquisition of minority interests are accounted for using the so-called “parent entity extension” method, whereby, the difference between the consideration paid
and the book value of the share of the net assets acquired is recognized as goodwill.
68 - Delhaize Group - Annual Report 2008
Consolidated
Balance Sheets
Consolidated
Income Statements
Consolidated Statements of
Recognized Income and Expense
Consolidated
Statements of Cash Flows
Notes to the
Financial Statements