The condensed consolidated interim financial statements of the KION Group for the three months ended 31 March 2013 have been prepared in accordance with International Accounting Standard (IAS) 34 'Interim Financial Reporting' and other International Financial Reporting Standards (IFRSs) 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 for interim financial statements. A condensed scope of interim reporting has been prepared in accordance with IAS 34.
All of the IFRSs and the related interpretations (IFRICs/SIC) of the IFRS Interpretations Committee (IFRS IC) that had been endorsed by the reporting date and that were required to be applied for financial years commencing on or after 1 January 2013 have been applied in preparing these condensed consolidated interim financial statements. These condensed consolidated interim financial statements do not contain all the information and disclosures required of a set of consolidated annual financial statements and should therefore be read in conjunction with the consolidated financial statements prepared for the year ended 31 December 2012. With the exception of the new IFRS standards and interpretations described below, the accounting policies used to prepare these condensed consolidated interim financial statements were the same as those used to prepare the consolidated financial statements for the year ended 31 December 2012.
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 the condensed consolidated interim financial statements for the three months ended 31 March 2013:
- Amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards': amendments relating to fixed transition dates and severe hyperinflation
- Amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards': amendments relating to government loans with a below-market rate of interest
- Amendments to IFRS 7 'Financial Instruments: Disclosures': offsetting of financial assets and financial liabilities
- 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
- IFRIC 20 'Stripping Costs in the Production Phase of a Surface Mine
Apart from the changes described below, the first-time adoption of these standards and interpretations has had no effect on the financial position or financial performance of the KION Group or on the disclosures in the notes to its financial statements:
- The amended IAS 1 results in a revised presentation of the statement of comprehensive income. Following the amendment to the standard, the items of other comprehensive income and loss must be split into items that will never be reclassified to profit or loss and items that might be reclassified to profit or loss in future periods.
- The publication of IFRS 13 'Fair Value Measurement' introduces a separate standard containing general rules on the measurement of fair value. The KION Group is applying these rules for the first time in the 2013 financial year. The main impact of this will be enhanced disclosures in the notes to the financial statements.
Financial reporting standards released but not yet adopted
In the unaudited condensed consolidated interim financial statements for the three months ended 31 March 2013, the KION Group has not applied the following standards and interpretations, which have been issued by the International Accounting Standards Boards (IASB) but are not yet required to be applied in 2013:
- Amendments to IFRS 7 'Financial Instruments: Disclosures': about the transition to IFRS 9 'Financial Instruments'
- IFRS 9 'Financial Instruments'
- Amendments to IFRS 9 'Financial Instruments': mandatory effective date;
- IFRS 10 'Consolidated Financial Statements'
- Amendments to IFRS 10 'Consolidated Financial Statements': amendments relating to the consolidation of investment entities
- IFRS 11 'Joint Arrangements'
- IFRS 12 'Disclosure of Interests in Other Entities'
- Amendments to IFRS 12 'Disclosure of Interests in Other Entities': amendments relating to the consolidation of investment entities
- Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12)
- IAS 27R 'Separate Financial Statements'
- Amendments to IAS 27 'Separate Financial Statements': amendments relating to the consolidation of investment entities
- IAS 28R 'Investments in Associates and Joint Ventures'
- Amendments to IAS 32 'Financial Instruments: Presentation': offsetting of financial assets and financial liabilities
- Improvements to IFRSs (2009-2011).
These standards and interpretations will only be applied by the companies included in the KION Group from the date on which they must be adopted for the first time.
The impact of the first-time adoption of IFRS 10 'Consolidated Financial Statements' is currently still being analysed, but we currently do not anticipate any material effects. The effects of the first-time adoption of the other standards and interpretations on the financial position and financial performance of the KION Group are expected to be insignificant.
The reporting currency is the euro. All amounts are disclosed in thousands of euros (€ thousand) unless stated otherwise. The rounding of amounts added together may result in rounding differences of +/- €1 thousand in the corresponding totals.
Accounting policies
The accounting policies applied in these condensed consolidated interim financial statements are generally the same as those used for the year ended 31 December 2012. These condensed consolidated interim financial statements are prepared based on the interim financial statements of the parent company and its consolidated subsidiaries prepared in accordance with the accounting policies applicable throughout the KION Group.
The transitional requirements of the revised IAS 19R 'Employee Benefits' required a retrospective application financial years commencing on or after 1 January 2013. In the KION Group, actuarial gains and losses, including deferred taxes, were already recognised in other comprehensive income (loss).
The first-time adoption of the revised IAS 19 in the KION Group for the 2013 financial year resulted in an overall decrease in retained earnings/net income of €3,323 thousand with effect from 1 January 2012. This is the net result of the adoption of pro-rata accumulation of bonuses and severance payments for preretirement part-time employment under the ‘block model’ used in the KION Group (increase of €1,776 thousand) and of the retrospective recognition of previously unrecognised past service costs (decrease of €750 thousand). Furthermore, alignment of the expected return on plan assets with the discount rate resulted in a decrease of retained earnings by €4,349 thousand with effect from 1 January 2012, with a corresponding increase in gains/losses on employee benefits recognised in other comprehensive income (loss).
Net income for the 2012 financial year has also increased by €1,030 thousand, while other comprehensive income (after income taxes) decreased by €982 thousand due to the alignment of the expected return on plan assets with the discount rate. The change in the accounting treatment of provisions for partial retirement obligations has resulted in a decrease in net income (after income taxes) of €750 thousand for the 2012 financial year. The consequences of the above effects for the first quarter of 2012 were an increase of €69 thousand in net income (after income taxes) and a decrease of €245 thousand in other comprehensive income (after income taxes).