Cofinimmo - Annual Financial Report 2014

144

ANNUAL ACCOUNTS /

Notes to the consolidated accounts

NOTE 1. GENERAL INFORMATION

Cofinimmo SA/NV (the “Company”) is a public RREC (Regulated Real

Estate Company) organised under Belgian Law, with registered

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

The consolidated financial statements of the company for the finan-

cial year ended 31.12.2014 comprise the company and its subsidiar-

ies (together referred to as the “Group”). The consolidation scope has

changed since 31.12.2013. During the year, a subsidiary was sold and

Cofinimmo acquired 100% of the shares of a company it held at 50%

in 2013. In addition, the Extraordinary General Meeting of 22.09.2014

approved the mergers by absorption of two subsidiaries, with a view

to simplifying the organisation of the Group. The consolidation scope

at 31.12.2014 is presented in Note 43 of this Annual Financial Report.

The consolidated and company financial statements were adopted

by the Board of Directors on 27.03.2015 and will be submitted to the

General Shareholders’ Meeting of 13.05.2015.

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 2013, except for what is

mentionned in Note 2.

The Group analyses the possible impact resulting from the application of

these standards.

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 13.07.2014 concerning

Regulated Real Estate Companies.

In 2014, the Group applied the following new standards: IFRS 10,

IFRS 11, IFRS 12, IAS 27 and IAS 28. No significant impact is expected

following the application of these standards.

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

the following main standards and interpretations

, or their amend-

ments, issued before the authorisation date of publication of the

annual accounts but not in force at the closing date: IFRS 9 and

IFRS 15. The Group does not have the right to anticipate these stand-

ards, as they have not yet been adopted in Europe.

The preparation of consolidated statements requires the company to

make significant judgments that affect the application of account-

ing methods (such as, for example, the determination of the clas-

sification 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 esti-

mates. 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 following 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 publica-

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

C. Basis of consolidation

I Subsidiaries

The current consolidated financial statements include the financial

statements of the company and the financial statements of the enti-

ties (including structured entities) which it controls and its subsidi-

aries. The company exercices control when:

•

it has authority over the issuing entiy;

•

it is exposed, or is entitled, to variable returns, resulting from its

ties with the issuing entity;

•

it has the capacity to exercise its authority so as to influence

the amount of the returns it obtains.

The company must reassess whether it controls the issuing entity

when events and circumstances indicate that one or more of the

three elements of control described above have changed.

The financial statements of the subsidiaries are included in the con-

solidated financial statements from the date that the control starts

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 subsidiaries’ financial statements cover the same

accounting period as that of the company.

Changes in the Group’s participations in a subsidiary which do not

result in a loss of control are accounted for as equity transactions.

Notes to the consolidated

accounts