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Principles of consolidation

In accordance with IAS 27, the assets and liabilities, expenditure and income of companies included in the consolidated financial statements may only be included in the consolidated financial statements from the time of acquisition, meaning the time of the actual transfer of control to these companies (IAS 27.30).

Pursuant to the principles of uniform management, business combinations undertaken are presented at the current market value to be attached in the consolidated financial statements in accordance with IFRS 3.36.

Capital consolidation for shares acquired by third parties against payment was carried out in accordance with IAS 27.22. The purchase costs of the merger are determined and then distributed to the acquired assets as well as to the assumed liabilities and contingent liabilities at the time of purchase (IFRS 3.16). The differences produced by offsetting are reported as goodwill and depreciated. Until 2004, they were depreciated pro rata temporis over their estimated useful life of ten years. Depreciation is no longer carried out from the 2005 financial year as IFRS 3 contains an obligation not to do so. Instead, the impairment test will be carried out once every year in accordance with IAS 36. There is no intention to reinstate the original values of depreciation already carried out (IFRS 3.79).

Shares in non-consolidated affiliated companies are reported at purchase cost in the balance sheet, in accordance with IAS 39.

Shares in fund companies are also reported in the balance sheet at purchase cost, in accordance with IAS 39.

Expenditure and income within the Group as well as receivables and payables existing between consolidated companies were eliminated pursuant to IAS 27.24 and IAS 27.25.