Basis of preparation
The consolidated financial statements of the KION Group for the financial year ended 31 December 2015 have been prepared in accordance with section 315a of the German Commercial Code (HGB) in conjunction with the 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 had been enacted by the reporting date and that were required to be applied in the 2015 financial year have been applied in preparing the consolidated financial statements.
In order to improve the clarity of presentation, certain items are aggregated in the statement of financial position and the income statement. The items concerned are disclosed and explained separately in the notes. Assets and liabilities are broken down into current and non-current items in accordance with IAS 1.60. The consolidated income statement is prepared in accordance with the cost of sales (function-of-expense) method.
The consolidated financial statements are prepared in euros, which is the Group’s functional currency and reporting currency. All amounts are disclosed in millions of euros (€ million) unless stated otherwise. The addition of the totals presented may result in minor rounding differences. The percentages shown are calculated on the basis of the respective amounts, rounded to the nearest thousand euros. The separate financial statements of the subsidiaries included in the consolidation were prepared as at the same reporting date as the annual financial statements of KION GROUP AG.
Financial reporting standards to be adopted for the first time in the current financial year
The following financial reporting standards were adopted for the first time in 2015:
- IFRIC 21 ‘Levies’
- Annual Improvements to IFRSs (2011–2013).
The first-time adoption of these standards has had no significant effect on presentation of the financial performance, financial position or notes to the financial statements of the KION Group.
Financial reporting standards released but not yet adopted
In its consolidated financial statements for the year ended 31 December 2015 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 2015:
- IFRS 9 ‘Financial Instruments’
- Amendments to IFRS 10 ‘Consolidated Financial Statements’, IFRS 12 ‘Disclosure of Interests in Other Entities’ and IAS 28 ‘Investments in Associates and Joint Ventures’, clarification relating to application of the exception to the consolidation obligation for investment entities
- Amendments to IFRS 10 ‘Consolidated Financial Statements’ and IAS 28 ‘Investments in Associates and Joint Ventures’: amendments relating to the sale or contribution of assets between an investor and its associate or joint venture
- Amendments to IFRS 11 ‘Joint Arrangements’: clarification relating to the acquisition of interests in joint operations
- IFRS 15 ‘Revenue from Contracts with Customers’
- IFRS 16 ‘Leases’
- Amendments to IAS 1 ‘Presentation of Financial Statements’: amendments in connection with the disclosure initiative
- Amendments to IAS 7 ‘Statement of Cash Flows’: amendments in connection with the disclosure initiative
- Amendments to IAS 12 ‘Income Taxes’: amendments relating to the recognition of deferred tax assets for unrealised losses on available-for-sale financial assets
- Amendments to IAS 16 ‘Property, Plant and Equipment’ and IAS 38 ‘Intangible Assets’: clarification relating to revenue-based depreciation and amortisation
- Amendments to IAS 16 ‘Property, Plant and Equipment’ and IAS 41 ‘Agriculture’: amendments relating to the financial reporting for bearer plants
- Amendments to IAS 19 ‘Employee Benefits’: defined benefit plans: employee contributions
- Amendments to IAS 27 ‘Separate Financial Statements’: amendments relating to the application of the equity method for subsidiaries, joint ventures and associates in separate financial statements
- Annual Improvements to IFRSs (2010–2012)
- Annual Improvements to IFRSs (2012–2014)
These standards and interpretations are expected to be applied by the entities included in the KION Group only from the date on which they must be adopted for the first time. The effects on the financial performance and financial position of the KION Group resulting from the first-time adoption of IFRS 9 ‘Financial Instruments’, IFRS 16 ‘Leases’ and IFRS 15 ‘Revenue from Contracts with Customers’, particularly with regard to multipleelement arrangements and contracts for indirect end customer finance, are still being analysed. The effects of the first-time adoption of the other standards and interpretations on the presentation of the financial position and financial performance of the KION Group are expected to be insignificant.