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Software AG GB 2012, englisch

SOFTWARE AG | ANNUAL REPORT 2012 170 Changes in ownership interests that do not lead to a loss of control are excluded from income and reported within equity. Since the transition to IFRS on January 1, 2003, goodwill previously recognized in line with the Commercial Code has been measured in accordance with IAS 36. Revenue, expenses and income, and receivables and payables arising between consolidated entities have been eliminated. Intercompany earnings are eliminated where they have not arisen from services to third parties. Group equity and net income attributable to minority interests are reported separately from equity and net income attributable to the shareholders of the parent company. Currency translation Financial statements of foreign subsidiaries are translated in accordance with the functional currency concept using the modified closing rate as set out in IAS 21. Since the subsidiaries operate independently from an organizational, financial and business standpoint, the respective local currency is identical with the functional currency. Income and expenses are translated at the relevant monthly average rate, assets and liabilities are translated at the closing rate and the respective equity of the subsidiaries is translated at historical rates. Currency translation differences arising from equity consolidation are offset against equity and reported in a separate line item in the Statement of Changes in Equity. In the schedule of changes in property, plant and equipment, the balances at the beginning and the end of the fiscal year are translated at the applicable closing rates, and other items are translated at average rates. Any differences arising from exchange rate fluctuations are shown as currency translation differences as a separate line item under both “cost” and “accumulated depreciation/impairment.” In the separate financial statements of the consolidated entities, foreign currency receivables and payables are translated at the closing rate. Exchange rate gains and losses not yet realized as of the balance sheet date are included in profit or loss for the period, except for translation differences arising from long-term, intercompany monetary items that are part of a net investment in a foreign company. These differences are recognized directly in equity under “other reserves.”

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