Basis of preparation
The consolidated financial statements of the KION Group for the financial year ended 31 December 2014 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 2014 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 2014:
- IFRS 10 ‘Consolidated Financial Statements’
- IFRS 11 ‘Joint Arrangements’
- IFRS 12 ‘Disclosure of Interests in Other Entities’
- Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12)
- Amendments to IFRS 10 ‘Consolidated Financial Statements’, IFRS 12 ‘Disclosure of Interests in Other Entities’ and IAS 27 ‘Separate Financial Statements’: amendments relating to the consolidation of investment entities
- 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
- Amendments to IAS 39 ‘Financial Instruments: Recognition and Measurement’: amendments relating to the novation of derivatives and continuation of hedge accounting.
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 2014 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 2014:
- 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 consolidation exception 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 14 ‘Regulatory Deferral Accounts’
- IFRS 15 ‘Revenue from Contracts with Customers’
- Amendments to IAS 1 ‘Presentation of Financial Statements’: amendments in connection with the disclosure initiative
- 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 accounting for bearer plans
- 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
- IFRIC 21 ‘Levies’
- Annual Improvements to IFRSs (2010–2012)
- Annual Improvements to IFRSs (2011–2013)
- 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. Their effects on the financial performance and financial position of the KION Group are still being analysed.