The consolidated financial statements include by full consolidation all domestic and foreign companies controlled by AGRANA Beteiligungs-AG (i.e., all subsidiaries), except where the subsidiary’s effect on the Group’s financial position and results of operations is immaterial. Subsidiaries’ accounts are consolidated from the time that control is acquired until control ceases.

Companies operated jointly with another entity (joint ventures) are included in the consolidated financial statements by proportionate consolidation based on the Group’s equity interest in the joint venture.

Companies over which AGRANA Beteiligungs-AG directly or indirectly exerts significant influence (associated entities, also referred to as associates) are included in the consolidated financial statements by the equity method of accounting.

At the balance sheet date, 61 (prior year: 63) companies besides the parent were fully consolidated in the Group financial statements and 8 (prior year: 7) companies were proportionately consolidated.

An overview of the fully consolidated and proportionately consolidated entities and other business interests is given here.

The number of companies that were fully or proportionately consolidated or that were equity-accounted changed as follows in the 2009|10 financial year:

• AGRAGOLD Holding GmbH, Vienna
  Activity: Other services
  Included from: November 2009
  Equity interest: 50%
  Purchase cost: € 5,000 thousand

The inclusion of AGRAGOLD Holding GmbH did not give rise to goodwill or negative goodwill.

The instances of deconsolidation relate to the liquidation of AGRANA Fruit Bohemia s.r.o., Kaplice, Czech Republic, and Dirafrost Germany GmbH, Hof, Germany. The most significant effect of the deconsolidation was an impairment charge on goodwill in the Fruit segment for the closed Czech company.

A company which until and including the 2008|09 financial year was accounted for under the equity method, Österreichische Rübensamenzucht Gesellschaft m.b.H., Vienna, is treated as a non-consolidated subsidiary from the year under review.

The information below presents the Group’s share of the aggregated assets, liabilities and results of the proportionately consolidated companies. The companies involved included the joint venture HUNGRANA Keményitö- és Isocukorgyártó és Forgalmazó Kft., Szabadegyháza, Hungary (of which AGRANA Stärke GmbH, Vienna, owns 50%) and its subsidiary Hungranatrans Kft., Szabadegyháza, Hungary. Also included by proportionate consolidation were AGRANA-STUDEN Beteiligungs GmbH, Vienna; Xianyang Andre Juice Co., Ltd, China; STUDEN-AGRANA Rafinerija Secera d.o.o., Brčko, Bosnia-Herzegovina; AGRANA Studen Sugar Trading GmbH, Vienna; Yongji Andre Juice Co., Ltd., China; and, from the financial year under review, AGRAGOLD Holding GmbH, Vienna.

The balance sheet date (reporting date) of the consolidated financial statements is the last day of February. Group companies with other reporting dates prepare interim financial statements at the Group reporting date.

• Acquisitions of companies that are fully or proportionately consolidated are accounted for using the purchase method, by allocating their acquisition cost to the acquired identifiable assets and liabilities (including contingent liabilities) at the time of acquisition. Where the acquisition cost exceeds the net fair value of the acquired assets and liabilities, the difference is recognised as goodwill under intangible assets. Conversely, where the acquisition cost is less than the net fair value of the acquired assets and liabilities, this difference arising on initial consolidation (sometimes referred to as “negative goodwill”) is recognised in income in the period of acquisition.
• Pursuant to IFRS 3, goodwill is not amortised. Instead, using the impairment-only approach, goodwill is tested for impairment at least annually and written down only in the event of impairment.
• Investments in associates are measured at equity (by the purchase method) on the basis of the associated entities’ most recent available annual financial statements. In accordance with IFRS 3, negative goodwill (any excess of the net fair value of acquired assets and liabilities over acquisition cost) is recognised under share of results of associates in the year of acquisition. As required under IFRS 3, goodwill arising on initial measurement is recognised in the carrying amount of the equity interests held and is not amortised but is tested for impairment at least annually.
• All expenses, income, receivables, payables and provisions resulting from transactions between fully or proportionately consolidated companies are eliminated.
• For assets that arise from intragroup flows of products or services and are included in non-current assets or in inventories, intercompany balances are eliminated unless immaterial.

• Financial statements of foreign Group companies are translated into euros in accordance with IAS 21. The functional currency of every Group company is its respective national currency. Assets and liabilities are translated at middle rates of exchange at the balance sheet date. Expenses and income are translated at annual average rates of exchange, with the exception of the currency translation gains and losses from the measurement of receivables and liabilities related to Group financing.
• Differences compared to prior-year amounts arising from the translation of balance sheet items at current balance sheet date exchange rates or arising from the use of average rates in translating expenses and income compared to the use of current balance sheet date rates are recognised directly in equity.
• Foreign currency monetary items are measured at exchange rates at the balance sheet date, with currency translation gains and losses recognised in profit or loss in the consolidated income statement.
• In translating the financial statements of foreign Group companies, the following exchange rates were applied: