Page 15 - Annual Report KELAG Group 2018

Full Equity Full Equity
consolidation method consolidation method
AS OF THE BEGINNING OF THE 33 4 34 2
REPORTING PERIOD
Included in the financial statements for 1 8 0 2
the first time in the reporting period
Deconsolidated in the reporting
period 2 0 1 0
AS OF THE END OF THE REPORTING 32 12 33 4
PERIOD
thereof Austrian entities 12 11 12 3
thereof non-Austrian entities 20 1 21 1

Entities on which the parent company can exercise significant influence, whether directly or
indirectly, or which fall under the definition of joint arrangements, are included in the
consolidated financial statements using the equity method.

After application of the equity method, the Group determines whether it is necessary to recognise
an additional impairment loss on the Group’s investment in the respective associate. At each
reporting date, the Group determines whether there is any objective evidence of impairment of
an investment in an associate. It uses the external and internal indications of impairment in
accordance with the KELAG Group’s impairment guidelines (see the explanations on judgements
and forward-looking assumptions). If an impairment test shows a need for impairment, the
difference between the recoverable amount and the corresponding carrying amount of the share
in the associate is recorded through profit or loss as an impairment loss.

Transactions in foreign currency in the separate financial statements of the entities included in
the Group’s consolidated financial statements are measured at the exchange rates on the date of
the transaction. The rate as of the relevant reporting date is used for subsequent measurement of
monetary items in the statement of financial position. Exchange gains and losses are recognised
as income/expense in the income statement item in which the underlying transaction was
recorded.

The functional currency of KELAG and the reporting currency of the Group is the euro. The
functional currency of each entity is fixed in accordance with IAS 21. Because the foreign entities
included in the consolidated financial statements conduct their business independently in their
local currency, the items in the statements of financial position of all foreign entities are translated
into euros at closing rates (mean rate) in the consolidated financial statements. The separate