Annual Report 2006

• Consolidated Income Statement
• Consolidated Balance Sheet
• Consolidated Cash Flow Statement
• Income and Expense
• Notes to Finacial Statements
  • Consolidation Principles
  • Accounting Policies
  • Scope of Consolidation
  • Notes to Consolidated Income Statement
  • Notes to Consolidated Balance Sheet
  • Proposed Appropriation of Profits
  • Segment Reporting
  • Pro Forma Statements (IFRS-3)
  • Supervisory Board
  • Management Board
  • Declaration Corporate Governance
• Shareholdings of the GfK Group
• Auditors' Report

Consolidation Principles

The annual financial statements of GfK AG and all material subsidiaries whose financial and operating policies are controlled directly or indirectly are included in the consolidated financial statements of GfK AG. The financial statements of all companies included in the consolidated financial statements have been prepared according to uniform accounting principles.

Companies in which the GfK Group has a participation of not  more than 50%, but over which significant influence can be exercised, are generally accounted for at equity as associates.  All other companies in the GfK Group are reported at acquisition cost.

A list of shareholdings of GfK AG is attached to these notes.

Capital consolidation is carried out in accordance with IFRS 3, “Business Combinations”, on the basis of the purchase method, whereby the acquisition costs of the participation are charged against the parent company’s pro rata share in the revalued equity  of the subsidiary at the acquisition date. Intangible assets which were acquired in business combinations and identified during the course of the purchase price allocation are entered on the balance sheet at fair value.

Any difference arising on the assets side after this crediting and purchase price allocation is reported under non-current assets as goodwill.

All transactions and balances between the companies of the  GfK Group which are included in the consolidated financial statements are eliminated when preparing the consolidated financial statements. Differences arising from debt consolidation  are recorded in the income statement. Intercompany results  and asset movements are eliminated with impact on the income statement if they are significant.

Associates that are included at equity (one-line consolidation) are included for the first time at the acquisition date. The first-time valuation is carried out analogously to the full consolidation. Any difference on the assets side arising from offsetting the carrying amount of the participation against the pro rata equity capital at initial valuation is included in the equity book value.

The consolidation on transition from equity valuation to full consolidation takes place with no impact on the income statement but is carried out separately for every part-acquisition. The acquisition costs included in capital consolidation comprise the equity net book value and the acquisition costs for the majority acquisition.

Profits or losses from mergers arising from the merger of two consolidated companies in the GfK Group are eliminated. Mergers therefore have no impact on the income statement of the GfK Group.

Company mergers involving external minority shareholders do not cause any change in the total minority interests or the consolidated total income.

If further shares are acquired in already fully consolidated companies, the purchase price of the additional acquisition is credited with the proportionate additionally acquired equity without impact on the income statement. Any difference on the assets side arising from the entry is shown as goodwill.

Shares in the equity of subsidiaries attributable to minority interests are shown separately under equity. Shares in the subsidiaries’ results attributable to minority interests are shown  as a separate item in the income statement.

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GfK Annual Report 2006

GfK 2006 Financial Statements