Page 15 - Annual Report KELAG Group 2018
P. 15

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
                                         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

                                      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
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