Annual financial report 2013

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Notes to the Consolidated Accounts

\ Annual Accounts

NOTE 1.

GENERAL INFORMATION

Cofinimmo SA/NV (the “Company”) is a public Sicaf immobilière/

Vastgoedbevak (Société d’Investissement immobilière à Capital Fixe/

Vastgoedbeleggingsvennootschap met vast kapitaal - fixed capital real

estate investment trust) organised under Belgian Law, with registered

offices in 1200 Brussels (Boulevard de la Woluwe/Woluwedal, 58). The con-

solidated financial statements of the company for the financial year ended

31.12.2013 comprise the company and its subsidiaries (together referred to

as the “Group”). The consolidation scope has changed since 31.12.2012.

Two new subsidiaries were created in 2013. In addition, the Extraordinary

General Meeting of 30.12.2013 approved the mergers by absorption of two

subsidiaries, with a view to simplifying the organisation of the Group. The

consolidation scope at 31.12.2013 is presented in Note 42 of this Annual

Financial Report.

The consolidated and company financial statements were adopted by

the Board of Directors on 20.03.2014 and will be submitted to the General

Shareholders’ Meeting of 14.05.2014. The Auditor Deloitte, Company

Auditors, represented by Mr. Frank Verhaegen, has completed its audit

work and confirmed that the accounting information contained in the

Annual Financial Report calls for no reservation on its part and is in agree-

ment with the financial statements adopted by the Board of Directors.

The accounting principles and methods adopted for the preparation of the

financial statements are identical to those used for the annual financial

statements for the financial year 2012, except for what is mentionned in

Note 2.

No impact is expected from the application of these main standards. Moreover, the impact of IFRS9 is not known yet, given that the standard is neither finalised, nor applicable.

NOTE 2.

SIGNIFICANT ACCOUNTING METHODS

A. Statement of compliance

The consolidated financial statements have been prepared in accordance

with the International Financial Reporting Standards, as adopted by the

Belgian Royal Decree of 07.12.2010 concerning Sicafis/Bevaks.

In 2013, the Group applied the following new standards: IFRS 10, IFRS 12,

IFRS 13, IAS 19R, and the adaptations of IAS 1. The Group has applied IFRS 12

in advance, with a more extensive presentation being its only impact.

Moreover, the Group has chosen not to anticipate the application of the

following main standards and interpretations

, or their modifications,

issued before the authorisation date of publication of the annual accounts

but not in force at the closing date: IAS 12, IAS 28, IAS 32, IFRS 9, IFRS 11.

The preparation of financial statements requires the company to make

significant judgments that affect the application of accounting methods

(such as, for example, the determination of the classification of lease

contracts) and to proceed to certain estimates (in particular, the estimate

of the provisions). These assumptions are based on the management’s

experience, on the assistance of third parties (real estate experts) and on

various other factors that are believed to be relevant. Actual results may

differ from these estimates. The estimates and underlying assumptions

are reviewed on an ongoing basis.

B. Basis of preparation

The financial statements are presented in euro, rounded to the nearest

thousand. They are prepared on the historical costs basis, except the fol-

lowing assets and liabilities, which are stated at their fair value: investment

properties, convertible bonds issued and derivative financial instruments.

Some financial figures in this Annual Financial Report have been rounded

up and, consequently, the overall totals in this Report may differ slightly

from the exact arithmetical sum of the preceding figures.

Finally, some reclassifications can intervene between the publication

dates of the annual results and of the Annual Financial Report.

C. Basis of consolidation

I Subsidiaries

Subsidiaries are those entities controlled by the company. Control exists

when the company has the power, directly or indirectly, to govern the

financial and operating policies of an entity so as to obtain benefits from

its activities. The financial statements of the subsidiaries are included in

the consolidated financial statements from the date that the control com-

mences until the date that the control ceases.

Where necessary, accounting policies of subsidiaries have been changed

to ensure consistency with the policies adopted by the Group. The sub-

sidiaries’ financial statements cover the same accounting period as that

of the company.

Changes in the Group’s participations in a subsidiary that do not result in a

loss of control are accounted for as equity transactions. The book value of

the participations in subsidiaries, held by the Group or by third parties, are

adjusted to reflect the changes in the respective levels of participation.

Any difference between the amount by which the minority interests are

adjusted and the fair value of the consideration paid or received is recog-

nised directly under equity.

II Jointly controlled entities

Jointly controlled entities are associated companies and joint ventures

over which the Group has a joint control, established by a contractual

agreement or following a distribution of shares amongst a limited number

of shareholders. Under the equity accounting method, the consolidated

income statement includes the Group’s share in the result of associated

companies and joint ventures. This share is calculated from the date on

which the joint control commences until the date on which the joint con-

trol ceases. The jointly-controlled entities’ financial statements cover the

same accounting period as that of the company.