Cofinimmo - Annual Financial Report 2015

NOTE 1. GENERAL INFORMATION

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

Estate Company) organised under Belgian law with registered offices

at boulevard de la Woluwe/Woluwedal 58, 1200 Brussels. The consol-

idated financial statements of the company for the financial year

ended 31.12.2015 comprise the Company and its subsidiaries (together

referred to as the “Group”). The consolidation scope has evolved since

31.12.2014. In addition to the disposal of two subsidiaries, Cofinimmo

acquired the shares of three companies and created two new subsidi-

aries during the year. Moreover, the Extraordinary General Meetings of

subsidiairies of 22.09.2015 and 18.11.2015 respectively approved the

mergers by absorption of a subsidiary and two French subsidiaries

aiming to simplify the Group’s organisation. The consolidation scope

at 31.12.2015 is presented in Note 43 of this Annual Financial Report.

The consolidated statutory financial statements were adopted by the

Board of Directors on 04.02.2016 and will be submitted to the General

Shareholders’ Meeting of 11.05.2016.

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 2014, except for what is

mentioned in Note 2.

NOTE 2. SIGNIFICANT ACCOUNTING METHODS

A. Statement of compliance

The consolidated financial statements have been prepared in accord-

ance with the International Financial Reporting Standards, as adopted

by the Belgian Royal Decree of 13.07.2014 concerning Regulated Real

Estate Companies.

In 2015, the Group applied the following new standard: IFRIC 21. There

is no significant impact from the application of this standard on the

financial statements on 31.12.2015.

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

the following main standards and interpretations

, or their modifi-

cations, issued before the authorisation date of publication of the

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

IFRS 15. However, the Group is not entitled to anticipate these two

standards given that they are not yet adopted in Europe.

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 esti-

mates 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 deriv-

ative 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

These consolidated financial statements include the financial state-

ments of the company and the financial statements of the entities

(including the structured entities) that it controls and its subsidiaries.

The company has control when it:

•

holds power over the issuing entity;

•

is exposed or entitled to variable returns because of its ties with

the issuing entity;

•

has the ability to exercise its power so as to affect the amount of

the returns that it receives.

The company must reassess whether it controls the issuing entity

when the facts and circumstances indicate that one or more of the

three elements of control listed above have changed.

The financial statements of the subsidiaries are included in the

consolidated financial statements from the date that the control

commences 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 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, is 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 considera-

tion paid or received is recognised directly under equity.

II Joint ventures

A joint venture is a joint agreement whereby the parties who exercise

joint control have rights over the net assets of the agreement. Under

the equity accounting method, the consolidated income statement

includes the Group’s share in the result of joint ventures. This share

is calculated from the date on which the joint control commences

until the date on which the joint control ceases. The jointly controlled

entities’ financial statements cover the same accounting period as

that of the company.

Notes to the consolidated

accounts

The Group is in the possible impact analysis following the application of these standards.

158

ANNUAL ACCOUNTS /

Notes to the consolidated accounts