Food Lion 2012 Annual Report Download - page 77

DELHAIZE GROUP FINANCIAL STATEMENTS’12 // 75
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. The
Company is present in ten countries on three continents. The Group’s sales network also includes other store formats such as
convenience 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 NYSE 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, 2012 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 6, 2013 subject to
approval of the statutory non-consolidated financial statements by the shareholders at the Ordinary General Meeting to be held
on May 23, 2013. In compliance with Belgian law, the consolidated accounts will be presented for information 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, 2012 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 2012, 2011, and 2010 include the results of operations of its U.S.
subsidiaries for the 52 weeks ended December 29, 2012, December 31, 2011 and January 1, 2011, 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).
Currently, 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 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 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 IASB pronouncements that have been adopted as of January 1, 2012:
 Amendments to IAS 12 Income Taxes; and
 Amendments to IFRS 7 Disclosures – Transfers of Financial Assets.
The adoption of these new, amended or revised pronouncements did not have any material impact on the consolidated financial
statements of the Group.