BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund Consolidation principles goodwill. If the acquisition costs are lower than the The annual financial statements of the companies fair value of the net assets of the subsidiary acquired, included in the consolidated financial statements the measurement of net assets is reviewed and the are prepared in accordance with IFRS, as adopted difference is recognised directly in the consolidated by the EU, using consistent accounting policies. statement of comprehensive income. The end of the reporting period for the consolidated The Group's interests in investments accounted for financial statements is the end of the reporting using the equity method relate to shareholdings in period of the parent company. associates. Associates are entities over which the Group has a Intercompany revenues, income and expenses, and significant influence but does not control or jointly all receivables and liabilities between companies manage the entities' financial and operating policies. included in the consolidated financial statements are eliminated on consolidation. Foreign currency translation The consolidated financial statements are presented Subsidiaries are entities controlled by the Group. The in euros. The euro is the currency of the primary Group controls an entity if the Group is exposed to or business environment (functional currency) of all has rights to variable returns from its investment in companies included in the consolidated financial the entity and if the Group has the ability to influence statements. In the single-entry financial statements those returns through its control over the entity. The of the parent and of the consolidated subsidiaries, financial statements of subsidiaries in included in the business transactions in foreign currencies are consolidated financial statements as at the date translated into the functional currency at the exchange control begins and until the time the Group no longer rate prevailing on the date of the transaction. Gains controls the entity. and losses arising on the fulfilment of such transactions and on the translation of monetary Acquired subsidiaries are accounted for using the assets and liabilities carried in foreign currencies acquisition method. The acquisition cost is equal to using the exchange rate prevailing at the end of the the fair value of the assets given, the equity reporting period are recognised in profit or loss. instruments issued and the liabilities incurred or assumed on the date of the transaction. The costs Accounting policies associated with the acquisition are recognised as an The significant accounting policies used in the expense. When consolidated for the first time, the preparation of these consolidated financial identifiable assets, liabilities and contingent liabilities statements are presented below. The policies acquired in a business combination are measured described were applied consistently for the reporting at their acquisition-date fair values, regardless of periods shown, unless otherwise indicated. the size of the minority interest. The consolidated financial statements were prepared based on amortised cost. However, Any excess of the acquisition cost over the share of derivative financial instruments are measured at equity acquired at fair value is recognised as fair value. 184