AGRANA Beteiligungs-AG (“the Company”) has its registered office at Donau-City-Strasse 9, 1220 Vienna. Together with its subsidiaries, the Company constitutes an international group engaged mainly in the worldwide processing of agricultural raw materials.
The consolidated financial statements of the AGRANA Group for 2009|10 were prepared in accordance with International Financial Reporting Standards (IFRS) in effect at the balance sheet date and with International Financial Reporting Interpretations Committee (IFRIC) interpretations, as adopted by the European Union.
Amounts in the consolidated financial statements are presented in thousands of euros (€000) unless otherwise indicated. As a result of automated calculation, rounding errors may occur in totals of rounded amounts and percentages.
In addition to the income statement, statement of recognised income and expense, cash flow statement and balance sheet, a statement of changes in equity is presented. Segment reporting is included in the notes to the consolidated financial statements.
All IFRS issued by the International Accounting Standards Board (IASB) that were effective at the time of preparation of these consolidated financial statements and applied by AGRANA Beteiligungs-AG have been adopted by the European Commission for application in the EU.
Beginning in the 2009|10 financial year, a number of new or revised standards and interpretations issued by the IASB were effective (i.e., their application became mandatory). The following IFRS were applied in the AGRANA Group for the first time in the year under review:
- As a result of the revision of IAS 1 (Presentation of Financial Statements), the financial statements now additionally include a reconciliation of profit for the period to comprehensive income (total recognised income and expense) for the period, which includes the income and expense recognised directly in equity.
- Under IAS 23 (Borrowing Costs), interest expenses which are directly attributable to the acquisition, construction or production of a qualifying asset (such as the construction of new manufacturing facilities or significant plant expansions) must be capitalised as part of the cost of that asset until the completion of the investment project.
- The revised IFRS 7 (Financial Instruments: Disclosures) requires the presentation of a three-tiered hierarchy of fair value measurements showing the extent to which fair values of financial instruments were determined on the basis of quoted market prices (Level 1), on the basis of inputs derived from quoted market prices (Level 2) or on the basis of unobservable internal company data (Level 3). In AGRANA’s consolidated financial statements the first-time application has led to expanded disclosures in the notes.
The following standards and interpretations which became effective for the 2009|10 financial year had insignificant or no effects on the consolidated financial statements of AGRANA:
- IFRS 1 (First-time Adoption of International Financial Reporting Standards – 2009) and IAS 27 (Group and Separate Financial Statements – 2008) – Amendments to IFRS 1 and IAS 27: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate, in the separate financial statements of the parent company
- IFRS 2 (Share-based Payment – 2008) – Amendment to IFRS 2: Share-based Payment: Vesting Conditions and Cancellations
- IFRS 8 (Operating Segments – 2009)
- IAS 32 (Financial Instruments: Presentation – 2008) and IAS 1 (Presentation of Financial Statements – 2008) – Amendments to IAS 32 and IAS 1: Puttable Financial Instruments and Obligations Arising on Liquidation
- Improvements to IFRSs (2008)
- Amendments to IFRIC 9 (Reassessment of Embedded Derivatives – 2009) and IAS 39 (Financial Instruments: Recognition and Measurement – 2009)
- IFRIC 11 (IFRS 2 – Group and Treasury Share Transactions)
- IFRIC 13 (Customer Loyalty Programmes)
- IFRIC 14 (IAS 19 – The Limit on a Defi ned Benefi t Asset, Minimum Funding Requirements and their Interaction – 2009)
The following changed or new standards and interpretations which have been adopted into European Union law were not yet effective in the 2009|10 financial year:
- The revised IFRS 3 (Business Combinations – 2008) includes changes in the rules regarding business acquisitions; the changes relate to the scope and method of accounting for incremental acquisitions of equity interests. The changes also create the option to measure non-controllinginterests either at fair value or at the proportionate share of the net assets acquired. Depending on the option chosen, any goodwill arising on acquisition is recognised either fully or only to the extent of the interest of the majority shareholder. The revised IFRS 3 becomes effective in the 2010|11 financial year.
- The amendments to IAS 27 (Group and Separate Financial Statements – 2008) clarify that transactions by which a parent company changes its ownership interest in a subsidiary without a resulting loss of control must in future be recognised directly in equity. The recognition rules for transactions resulting in loss of control in a subsidiary were also amended. The standard specifies how to determine a deconsolidation gain and measure a residual interest remaining on disposal. The amended IFRS 27 first becomes effective in the 2010|11 financial year.
The following new or amended standards and interpretations have insignificant or no effects on AGRANA’s consolidated financial statements:
- IAS 32 (Financial Instruments: Presentation – 2009) – Amendment to IAS 32: Classification of Rights Issues
- IAS 39 (Financial Instruments: Recognition and Measurement – 2009) – Amendment to IAS 39: Financial Instruments: Recognition and Measurement – Eligible Hedged Items
- Improvements to IFRSs (2009)
- IFRS 1 (First-time Adoption of International Financial Reporting Standards – 2008) – Amendment to IFRS 1: Restructured version of this standard
- IFRS 2 (Share-based Payment – 2009) – Amendment to IFRS 2: Share-based Payment: Group Share-based Cash-Settled Payment Transactions
- IFRIC 12 (Service Concession Arrangements)
- IFRIC 15 (Agreements for the Construction of Real Estate)
- IFRIC 16 (Hedges of a Net Investment in a Foreign Operation)
- IFRIC 17 (Distribution of Non-Cash Assets to Owners)
- IFRIC 18 (Transfers of Assets from Customers)
The following standards, interpretations and amendments were already published by the IASB, but were not yet adopted by the European Union into EU law; they were not yet applied by AGRANA:
- IFRS 1 (First-time Adoption of International Financial Reporting Standards – 2009) – Amendment to IFRS 1: Additional Exemptions for First-time Adopters
- IFRS 1 (First-time Adoption of International Financial Reporting Standards – 2010) – Amendment to IFRS 1: Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters
- IFRS 9 (Financial Instruments)
- IAS 24 (Related Party Disclosures – 2009)
- IFRIC 14 (Prepayments of a Minimum Funding Requirement – 2009)
- IFRIC 19 (Extinguishing Financial Liabilities with Equity Instruments)
In preparing the consolidated financial statements, the principles of clarity, understandability and materiality were observed. In the presentation of the income statement, the nature of expense method was used. The separate financial statements of the fully consolidated companies represented in the consolidated financial statements are based on uniform accounting policies.