49 / 79
III. Principles of consolidation
With the exception of equity, all balance sheet items
of the foreign subsidiaries have been translated at
the current exchange rate as of the balance sheet
reporting date. The translation of the income
statements of the foreign subsidiaries was carried
out using annual average exchange rates. The
translation differences were recorded directly in
equity without affecting results.
In accordance with § 301 HGB, capital consolidation
was carried out with the revaluation method (up
until and including 2009: carrying value method) by
crediting the acquisition costs (initial value) of the
holdings to the portion of the consolidated compa-
nies’ equity as of the date of acquisition or first
consolidation.
Within the scope of the debt consolidation, all
accounts receivable and payable between the
companies included in the consolidated financial
statement were offset against one another.
As a result of the consolidation of expenses
and income, expenses and income among the
Koelnmesse consolidated companies were offset
against one another, also taking profit and loss
transfer agreements into account.
There were no interim results.
IV. Accounting and valuation methods
The annual financial statements of the companies
included in the consolidated financial statement as
well as the consolidated financial statement have
been uniformly drawn up in accordance with the
accounting and valuation principles applied by
Koelnmesse GmbH, while also taking into account
the continuation of business operations. The
accounting and valuation principles applied to the
previous annual financial statements and the
previous consolidated financial statement were
retained. Intangible fixed assets were valuated at
acquisition cost less straight-line depreciation.
Acquisition cost also includes individually assignable
additional expenditures and subsequent acquisition
costs. Acquisition price reductions were deducted.
Scheduled depreciation amounts are based on
customary useful lives in accordance with the
relevant, valid official tables specifying the deprecia-
tion allowances. The useful lives for paid-for
industrial rights and similar rights and assets range
from three to five years. Goodwill has a depreciation
of more than ten years in the consolidated financial
statement, as this corresponds to the expected
duration of use. Self-provided intangible assets and
development expenditures were not capitalised.
Property, plant and equipment are measured at
acquisition cost less straight-line compound rates.
The useful life of technical machinery and equip-
ment is between 8 and 15 years; for other equip-
ment, plant and office equipment, it is between 3
and 15 years. Buildings were measured at acquisition
cost less straight-line compound rates, and for
acquisition prior to first application of BilMoG, less
linear or digressive compound rates. Scheduled
depreciation amounts are recognized according to
the ordinary useful life pro rata temporis and take
technical and economic depreciation into account.
The useful life of buildings and similar rights is
between 24 and 99 years.With regard to buildings
on third-party property, Koelnmesse assumes (in line
with appraisal reports on Koelnmesse net asset
values drawn up by the City of Cologne) an ordinary
useful life that can extend beyond the point at
which the relevant leaseholds expire. In the year of
their addition, low-value assets are recorded as
expenses in the year of acquisition if the acquisition
cost for each asset does not exceed EUR 150.00. For
simplicity’s sake, lower-value assets the acquisition
costs of which are between EUR 150.00 and EUR
1,000.00 are grouped as a compound item subject to
straight-line depreciation over a period of five years.
Notes concerning the Consolidated Financial Statement and the Annual Financial Statement 48/49