Footnote Disclosures of accounting principles and methods: example 2
{"Image DocumentName": "Footnote Disclosures of accounting principles and methods: example 2", "Image ImageDescription": "General Information. The consolidated financial statements of Henkel AG & Co. KGaA as of December 31, 2011 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and in compliance with Section 315a of the German Commercial Code [HGB]\u2026. Scope of consolidation. In addition to Henkel AG & Co. KGaA as the ultimate parent company, the consolidated financial statements at December 31, 2011 include seven German and 170 non-German companies in which Henkel AG & Co. KGaA has a dominating influence over financial and operating policy, based on the concept of control..... Compared to December 31, 2010, four new companies have been included in the scope of consolidation and eleven companies have left the scope of consolidation. Seven mergers also took place. The changes in the scope of consolidation have not had any material effect on the main items of the consolidated financial statements. Excerpt from footnotes of Henkel 2011 Annual Report. LOS. Analyze company disclosures of significant accounting policies. Pages 126\u2013127. This excerpt from the footnotes to the financial statements in Henkel\u2019s 2011 Annual Report illustrates the general information typically found in the footnotes explaining the accounting standards applied and the scope of consolidation. The first disclosure shown states that the company uses IFRS as adopted by the EU. Note that. IAS 1, Financial Statements, Paragraph 16 states: An entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes. An entity shall not describe financial statements as complying with IFRSs unless they comply with all the requirements of IFRSs. The second item shown indicates how the scope of consolidation has changed for Henkel: 4 new companies included, 11 companies excluded, and 7 mergers. The disclosure indicates that the changes in scope of consolidation has not had a material impact on the main items of the consolidated financial statements. Copyright \u00a9 2013 CFA Institute.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}