The consolidated financial statements of the KION Group for the financial year ended 31 December 2011 have been prepared in accordance with section 315a of the German Commercial Code (HGB) which requires the application of International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) applicable as at the reporting date as well as the associated interpretations (IFRICs) of the IFRS Interpretations Committee (IFRS IC) as adopted by the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council concerning the application of international accounting standards. All of the IFRSs and IFRICs that were issued by the reporting date and that were required to be applied in the 2011 financial year have been applied in preparing the consolidated financial statements.
Financial reporting standards to be adopted for the first time in the financial year under review:
The following financial reporting standards and interpretations were adopted for the first time in 2011:
- Amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards': amendments relating to the limited exemption from comparative IFRS 7 disclosures
- Revised version of IAS 24 'Related Party Disclosures'
- Amendments to IAS 32 'Financial Instruments: Presentation', classification of rights issues (rights, options and warrants)
- Amendments to IFRIC 14 'The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction', prepayment of minimum funding requirements
- IFRIC 19 'Extinguishing Financial Liabilities with Equity Instruments'
- Improvements to IFRSs in 2010
The first-time adoption of these standards and interpretations had no significant effect on the presentation of the financial position and financial performance of the KION Group.
Financial reporting standards released but not yet adopted
In its consolidated financial statements for the year ended 31 December 2011 the KION Group has not applied the following standards and interpretations, which have been issued by the IASB but are not yet required to be adopted in 2011:
- Amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards', amendments relating to fixed transition dates and severe hyperinflation
- Amendments to IFRS 7 'Financial Instruments: Disclosures', disclosures relating to transfers of financial assets
- Amendments to IFRS 7 'Financial Instruments: Disclosures', offsetting of financial assets and financial liabilities
- IFRS 9 'Financial Instruments'
- IFRS 10 'Consolidated Financial Statements'
- IFRS 11 'Joint Arrangements'
- IFRS 12 'Disclosure of Interests in Other Entities'
- IFRS 13 'Fair Value Measurement'
- Amendments to IAS 1 'Presentation of Financial Statements', amendments relating to the presentation of items of other comprehensive income
- Amendments to IAS 12 'Income Taxes', limited amendment to IAS 12 relating to the recovery of underlying assets
- Amendments to IAS 19 'Employee Benefits', elimination of the use of the 'corridor' approach and amendments relating to the presentation of items of pension expense
- IAS 27R 'Separate Financial Statements'
- IAS 28R 'Investments in Associates and Joint Ventures'
- Amendments to IAS 32 'Financial Instruments: Presentation', offsetting of financial assets and financial liabilities
- IFRIC 20 'Stripping Costs in the Production Phase of a Surface Mine'
These standards and interpretations will only be applied by the companies included in the KION Group from the date at which they must be adopted for the first time. Their effects on the financial position and financial performance of the KION Group are expected to be insignificant.
The various amendments issued in May 2011 as part of the annual improvement project mainly relate to terminology and editorial aspects. They are not expected to have any significant effect on the presentation of the financial position and financial performance.
In order to improve the clarity of presentation, certain items are aggregated on the face of the statement of financial position and income statement. The items concerned are disclosed and explained separately in the notes. In accordance with IAS 1.60, assets and liabilities are classified into current and non-current items. The consolidated income statement is prepared in accordance with the cost of sales (function-of-expense) method.
The reporting currency is the euro. All amounts are disclosed in thousands of euros (€ thousand) unless stated otherwise. The addition of the totals presented may result in rounding differences of +/- €1 thousand. The separate financial statements included in the consolidation were prepared on the same reporting date as the annual financial statements of KION Holding 1 GmbH.