Food Lion 2009 Annual Report Download - page 85

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SUMMARY STATUTORY ACCOUNTS
OF DELHAIZE GROUP SA
HISTORICAL FINANCIAL OVERVIEW CERTIFICATION OF RESPONSIBLE
PERSONS
REPORT OF THE STATUTORY AUDITOR
SUPPLEMENTARY INFORMATION
Notes to the Financial Statements
1. General Information
The principal activity of Delhaize Group (also referred to, with its consolidated and associated companies, except where the context otherwise
requires, as “we,” “us,” “our,” “the Group” and “the Company”) 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 independent wholesale customers 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”), under the symbols “DELB” and “DEG”, respectively.
The consolidated financial statements for the year ended December 31, 2009 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 10, 2010 subject to approval of the statu-
tory non-consolidated accounts by the shareholders at the Ordinary General Meeting to be held on May 27, 2010. 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. Significant Accounting Policies
2.1. Basis of Preparation
The consolidated financial statements comprise the financial statements of Delhaize Group and its subsidiaries as of December 31, 2009
except for the Delhaize Group’s U.S. subsidiaries for which the fiscal year ends the Saturday closest to December 31. Consequently, the con-
solidated results of Delhaize Group for 2009, 2008, and 2007 include the results of operations of its U.S. subsidiaries for the 52 weeks ended
January 2, 2010, 53 weeks ended January 3, 2009 and 52 weeks ended December 29, 2007, 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 as 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 the EU. We further refer to the
comments made in connection with the Initial Application of New, Revised or Amended IASB Pronouncements in Note 2.2 and Standards and
Interpretations Issued but not yet Effective in Note 2.5.
These financial statements have been prepared under the historical cost convention except for derivative financial instruments, available-for-
sale financial assets and financial liabilities being part of a designated fair value hedge relationship that have been measured at their relevant
fair values, as disclosed in the corresponding notes. Assets and disposal groups classified as held for sale have been measured 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 manage-
ment 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 assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 2.4.
2.2. Initial Application of New, Revised or Amended IASB Pronouncements
The accounting policies adopted are consistent with those of the previous financial year except for the following new, amended or revised IFRSs
and IFRIC interpretations that have been adopted, as of January 1, 2009:
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t"NFOENFOUTUP*'34Vesting Conditions and Cancellations
t"NFOENFOUTUP*'34Financial Instruments: Disclosures
t*'34Operating Segments
t3FWJTFE*"4Presentation of Financial Statements
t"NFOENFOUUP*"4Borrowing Costs
t"NFOENFOUTUP*"4Consolidated and Separate Financial Statements - Cost of Investments in a Subsidiary, Jointly Controlled
Entity or Associate
t"NFOENFOUTUP*"4BOE*"4Puttable Financial Instruments and Obligations Arising on Liquidation
t"NFOENFOUTUP*'3*$3eassessment of Embedded Derivatives and IAS 39 Financial Instruments: Recognition and Measurement
- Embedded Derivatives
t*'3*$$ustomer Loyalty Programmes