using the effective interest rate method. This was partially offset by the drawdown of a €50.0 million tranche under
the loan agreement with the European Investment Bank that was entered into in the first quarter of fiscal 2015.
Interim financial reporting 3075
4.3.18
Dividends paid for each class of share
In the Extract below, ASML Holding discloses dividends paid during the interim period.
[IAS 34.16A(f)].
Extract 37.19: ASML Holding N.V. (interim ended July 2016)
Notes to the Consolidated Condensed Interim Financial Statements [extract]
Note 12
Dividends and Share Buybacks [extract]
As part of our financing policy, we aim to pay an annual dividend that will be stable or growing over time. [...]
In the AGM of April 29, 2016, a dividend of EUR 1.05 per ordinary share of EUR 0.09 nominal value was adopted
for 2015. As a result, a total dividend of EUR 445.9 million was paid to our shareholders on May 17, 2016.
4.3.19
Events after the interim reporting date
In the Extract below, Ferratum reports the issuance of a bond after the interim period.
[IAS 34.16A(h)].
Extract 37.20: Ferratum Group (interim ended June 2015)
IFRS unaudited condensed interim consolidated financial statements [extract]
Significant events after the reporting date
In July 2015, Ferratum Bank Plc, a subsidiary of Ferratum Oyj (ISIN: FI4000106299, WKN: A1W9NS; together with
its consolidated subsidiaries hereinafter “Ferratum Group” or “Ferratum”), successfully placed a bond with
institutional investors in Germany and other EU countries. The bank has placed an issue volume of EUR 20 million
with a denomination of EUR 100,000 as the first tranche under a total bond issue program of EUR 30 million. The
bond is guaranteed by Ferratum Oyj. The bond is admitted for trading on the EU-regulated European Wholesale
Securities Market (“EWSM”) in Malta. Furthermore, the bond has also been co-listed on the Frankfurt Stock
Exchange in the open market segment (Freiverkehr). The bond has a coupon of 4.90% per annum and matures after
18 months. The interest payments are due on July 21, 2016, and January 21, 2017.
The bond issue will allow Ferratum to further optimize its financing structure and replace expiring financings. This
refinancing is part of a regular adjustment of corporate financing where a certain volume is now shifted to the level
of our bank and thus sustainably improves Ferratum’s financing structure. It strengthens Ferratum Bank and its ability
to enter the deposit business.
Although not a requirement under IAS 34, it is useful to disclose the date on which the
interim financial statements are authorised for issue as it helps the users to understand
the context of any disclosure of events after the interim reporting date. [IAS 10.17].
4.3.20
Changes in the composition of the entity
The notion of changes in the composition of the entity is broadly defined to include
acquisitions, restructurings and discontinued operations. [IAS 34.16A(i)].
3076 Chapter 37
In the Extract below, Fairfax Media discloses the acquisitions and disposals of controlled
entities made during the interim period. The disclosure reproduced below about the
change in the nature of their interest in Neighbourly Limited is accompanied by other
disclosures required by IFRS 3 for business combinations, which are not included here.
Extract 37.21: Fairfax Media Limited (interim ended December 2016)
Notes to the Financial Statements: Group Structure [extract]
6. Business combinations, acquisition and disposal of controlled entities [extract]
(A) ACQUISITIONS [extract]
The Group gained control over the following entities during the half year:
Entity or business acquired
Principal activity
Date of
Ownership
acquisition
interest
Thought World Pty Ltd (i)
Utility comparison and connection service
6 July 2016
50%
Neighbourly Limited (ii)
Private neighbourhood website service
1 December 2016
70%
(i) Following the incorporation for Residential Connections Pty Ltd, the business assets of Thought World Pty Ltd
were acquired.
(ii) The Group previously owned 45% of Neighbourly Limited (New Zealand). On 1 December 2016 an additional 25%
ownership interest was acquired and the Group gained control of Neighbourly Limited. The initial equity interest
was remeasured to fair value resulting in a gain of $2.7m recognised within Other Revenue and Income in Note 2.
The provisionally determined fair values of the identifiable assets and liabilities acquired are detailed below. Balances are provisional as purchase price accounting has not been finalised.
In the Extract below, Roche discloses extensive information on its ongoing significant
restructuring activities. In addition, further break-downs of the type of costs incurred
and information about the classification of depreciation, amortisation and impairment
and of other costs in the income statement is provided (not reproduced here).
Extract 37.22: Roche Holding Ltd (interim ended June 2017)
Notes to the Roche Group Interim Consolidated Financial Statements [extract]
6.
Global restructuring plans
During the six months ended 30 June 2017 the Group continued with the implementation of several major global restructuring plans initiated in prior years, notably the strategic realignment of the Pharmaceuticals Division’s manufacturing network.
Global restructuring plans: costs incurred in millions of CHF
Diagnostics1) Site
Other plans3) Total
consolidation2)
Six months ended 30 June 2017
Global
restructuring
costs
– Employee-related costs
53
(68)
7
(8)
– Site closure costs
5
157
–
162
– Divestment of products and businesses
–
94
–
94
– Other reorganisation expenses
43
3
27
73
Total global restructuring costs
101
186
34
321
Interim financial reporting 3077
Six months ended 30 June 2016
Global
restructuring
costs
– Employee-related costs
41
(3)
93
131
– Site closure costs
20
118
2
140
– Other reorganisation expenses
79
13
28
120
Total global restructuring costs
140
128
123
391
1)
Includes the strategy plans in the Diagnostics Division and the Diabetes Care ‘Autonomy and Speed’ plan.
2)
Includes the Pharmaceuticals Division’s strategic realignment of its manufacturing network.
3)
Includes plans for Pharmaceuticals Division research and development strategic realignment a
nd outsourcing of
IT and other functions.
Diagnostics Division
During the six months ended 30 June 2017 strategy plans in the Diagnostics Division that were launched in 2016 incurred
costs of CHF 62 million mainly for employee-related costs. Spending on other smaller plans within the division was CHF
39 million and included costs related to the ‘Autonomy and Speed’ initiative in Diabetes Care and certain IT projects.
Site consolidation
On 12 November 2015 the Pharmaceuticals Division announced a strategic realignment of its manufacturing network
including exiting from the manufacturing sites at Clarecastle, Ireland; Leganes, Spain; Segrate, Italy; and Florence, US. Costs from this plan during the six months ended 30 June 2017 were CHF 176 million, of which CHF 126 million were non-cash
impairment and accelerated depreciation of property, plant and equipment. Some employee-related provisions were reversed
as the most likely scenario for one site was changed from closure to divestment. The divestment of the Roche Carolina
subsidiary at the Florence site in the US has been completed with a loss on divestment of CHF 94 million and the divestment accounting includes CHF 91 million of accumulated currency translation losses on consolidation that were transferred to the income statement (see Note 13). Roche Carolina had a net positive asset position of around USD 0.5 billion since it was
established in the 1990s and that value, expressed in Swiss francs, has decreased over the last twenty years.
Other global restructuring plans
During the six months ended 30 June 2017 the major item was CHF 30 million for outsourcing of IT and other
functions to shared service centres and external providers.
In the Extract below, adidas describes the impact of its significant divestments. In
addition, the company discloses quantitative information about the results of
discontinued operations for the current and prior interim periods attributable to the
discontinued operations (not reproduced here).
Extract 37.23: adidas AG (interim ended June 2017)
INTERIM CONSOLIDATED INTERIM FINANCIAL STATEMENTS (IFRS) [extract]
03
– DISCONTINUED OPERATIONS [extract]
On May 10, 2017, adidas signed a definitive agreement to sell its TaylorMade business including the brands
TaylorMade, Adams Golf and Ashworth (together TaylorMade). The transaction, which is subject to customary
closing conditions, is expected to be completed later in 2017. As a result, TaylorMade is reported as discontinued
operations and classified as a disposal group held for sale as at June 30, 2017. The fair value was determined based
on the signed agreement. Around half of the total consideration of US $425 million will be paid in cash with the
remainder in a combination of a secured note and contingent considerations. The fair value of the remainder was
estimated by applying the discounted cashflow method and Monte Carlo method, respectively.
Due to the concrete plans to sell the CCM Hockey operating segment and the approval by the respective committees, the
CCM Hockey operating business is reported as discontinued operations and classified as a disposal group held for sale as
at June 30, 2017. The fair value was determined based on the expected most likely bid which will be paid in cash and in
3078 Chapter 37
the form of a secured note. The fair value of the secured note was estimated by applying the discounted cashflow method.
The net result of discontinued operations presented in the consolidated income statement as at June 30, 2017 also
contains the fair value adjustment of the contingent consideration in connection with the sale of the Rockport
operating segment in July 2015. [...]
Losses from discontinued operations for the first half year ending June 30, 2017 in an amount of €195 million (2016:
losses of €28 million) are entirely attributable to the shareholders of adidas AG.
4.4 Segment
information
If an entity is required to disclose segment information in its annual financial statements,
certain segment disclosures are required in its interim financial report. IFRS 8 is
discussed in more detail in Chapter 32.
An entity applying IFRS 8 in its annual financial statements should include the following
information in its interim financial report about its reportable segments: [IAS 34.16A(g)]
(a) segment revenues from external customers (if included in the measure of segment
profit or loss reviewed by or otherwise regularly provided to the chief operating
decision maker);
(b) intersegment revenues (if included in the measure of segment profit or loss reviewed
by or otherwise regularly provided to the chief operating decision maker);
(c) a measure of segment profit or loss;
(d) a measure of total assets and liabilities for a particular reportable segment if such
amounts are regularly provided to the chief operating decision maker and if there
has been a material change from the amount disclosed in the last annual financial
statements for that reportable segment;
(e) a description of differences in the basis of segmentation or in the basis of
measurement of segment profit or loss from the last annual financial statements; and
(f) a reconciliation of the total profit or loss for reportable segments to the entity’s
profit or loss before income taxes and discontinued operations. However, if an
entity allocates such items as income taxes to arrive at segment profit or loss, the
reconciliation can be to the entity’s profit or loss after those items. The entity
should separately identify and describe all material reconciling items.
In Extract 37.24 below, Daimler discloses segment revenues and segment profit or loss
in its interim financial report for the second quarter of 2018. Presumably, information
required by (d) above is not included because it is not applicable for the periods
presented. In addition, the reconciliation to group figures is also provided for the full
first half of 2017 (not reproduced here).
Extract 37.24: Daimler AG (interim ended June 2018)
Notes to the Interim Consolidated Financial Statements [extract]
19. Segment
reporting [extract]
Segment information for the three-month periods ended June 30, 2018 and June 30, 2017 is as follows:
E.30
Segment reporting for the three-month periods ended June 30
Interim financial reporting 3079
Daimler
Mercedes-
Daimler
Mercedes-
Daimler
Financial
Total
Recon-
Daimler
In millions of euros
Benz Cars
Trucks
Benz Vans
Buses
Services
segments
ciliation
Group
Q2 2018
External
revenue 21,659
8,734
3,302 1,046 6,015 40,756
– 40,756
Intersegment
revenue
916 451
209 29 292
1,897
–1,897 –
Total revenue
22,575
9,185
3,511
1,075
6,307
42,653
–1,897
40,756
Segment profit (EBIT)
1,901
546
152
>
66
66
2,731
–91
2,640
thereof share of
profit/loss from
equity-method
investments 354
20
10
–
–424
–40
26
–14
thereof
profit/loss from
compounding
and effects
from changes in
discount rates
of provisions
for other risks
–3
–5
–6
–
–
–14
–
–14
Reconciliation
Reconciliation of the total segments’ profit (EBIT) to profit before income taxes is as shown in table ↗ E.32.
The reconciliation comprises corporate items for which headquarter is responsible. Transactions between the segments
are eliminated in the context of consolidation.
E.32
Reconciliation to Group figures [extract]
Q2 2017
In millions of euros
Q2 2018
(adjusted) 1
Total segments’ profit (EBIT)
2,731
3,862
Share of profit from equity-
method investments2
26
20
Other corporate items
–121
–142
Eliminations
4
7
Group EBIT
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 609
