• Balance Sheet
• Income Statement
• Statement of Changes in Equity
• Segmental Reporting
• Cash Flow Statement
• Notes
  • Notes to the Annual Financial Statements
    • Principles and methods
    • Reporting entity
    • List of Holdings of the MVV Energie Group
    • Consolidation methods
    • Currency conversion
    • Accounting and valuation methods
  • Notes on the Balance Sheet
  • Notes on the Income Statement
  • Relationships to related companies, individuals and entities
  • Statement of Compliance pursuant to Section 161 of German Stock Corporation Law (AktG)
  • Information on concessions
  • Events subsequent to the reporting date
• Audit Opinion

Consolidation methods

The annual financial statements included in the consolidated financial statements have been converted to IFRS on the basis of uniform standards as of 30 September 2005 and have been certified by the auditors.

The capital consolidation for company acquisitions completed after 31 March 2004 has been undertaken pursuant to IFRS 3. This requires any resultant credit difference between the costs of acquiring a subsidiary and its re-valued prorated net assets to be stated as goodwill. Goodwill is not subject to scheduled amortisation, but rather undergoes an annual impairment test pursuant to IAS 36. In the event of the re-valued prorated net assets of the subsidiary exceeding the purchase price, then the debit difference is recorded under the goodwill amortisation item with a corresponding impact on earnings.

For company acquisitions completed prior to 31 March 2004, the capital consolidation was initially undertaken pursuant to IAS 22 on the basis of the proportional revaluation method. Any resultant credit differences were capitalised as goodwill and subject to scheduled amortisation. Debit differences were reported in the income statement in line with the change in future earnings implications depicted in the purchase price.

In the context of the transition from IAS 22 to IFRS 3, the scheduled amortisation of positive goodwill was discontinued as of 30 September 2004. Instead of scheduled amortisation, positive goodwill is subjected to an annual impairment test pursuant to IAS 36. Negative goodwill items reported as of 30 September 2004 were reclassified as retained earnings as of 1 October 2004 without any impact on earnings.

Intercompany receivables and liabilities, as well as intercompany sales, income and expenses, have been offset against each other pursuant to IAS 27.

Major joint ventures have been proportionately included in the consolidated financial statements in line with IAS 31. Such joint ventures have been consolidated on the basis of the principles outlined above.

Key shareholdings in associated companies have been valued at equity pursuant to IAS 28.