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Note 2: Scope of consolidation


In early 2012, we acquired 100 percent of Boxing Oleo-chemicals in Specialty Chemicals – the leading supplier of nitrile amines and derivatives in China and throughout Asia. On December 28, 2012, we completed the divestment of Chemicals Pakistan, which was subsequently deconsolidated. This divestment resulted in a loss of €36 million, due to foreign currency translation differences in equity which need to be transferred to the statement of income at divestment.

The acquisitions in 2012 both individually and in total, were deemed immaterial in respect of IFRS 3 disclosure requirements. Pre-acquisition carrying amounts were not gathered. Note 2: Scope of consolidation in 2012 was impacted by acquisitions for an amount of €236 million.

Recognized values at acquisition

 

 

 

 

 

 

 

In € millions

 

Boxing

 

Other acquisitions

 

Total

Goodwill

 

48

 

10

 

58

Other intangible assets

 

27

 

(3)

 

24

Property, plant and equipment

 

29

 

2

 

31

Inventories

 

17

 

3

 

20

Trade and other receivables

 

18

 

6

 

24

Cash and cash equivalents

 

10

 

 

10

Provisions

 

 

(1)

 

(1)

Deferred tax assets/(liabilities)

 

(7)

 

4

 

(3)

Long-term borrowings

 

(3)

 

 

(3)

Trade and other payables

 

(34)

 

 

(34)

Net identifiable assets and liabilities

 

105

 

21

 

126

Recognized in the statement of income

 

 

 

Consideration paid

 

105

 

21

 

126

Cash and cash equivalents acquired

 

(10)

 

 

(10)

To be paid in 2013 and later years

 

(26)

 

(1)

 

(27)

Payments related to previous years

 

 

5

 

5

Net cash outflow

 

69

 

25

 

94

In 2012, the scope of consolidation for the Consolidated financial statements encompassed 396 companies (2011: 435). Of this number, 9 companies were first-time consolidations (2011: 15). Since the beginning of 2012, 48 companies were deconsolidated due to divestment, merger, liquidation or immateriality (2011: 36). First-time consolidations in 2012 comprised 4 companies in conjunction with the acquisition of Boxing.

Changes in scope of consolidation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of subsidiaries

 

2011

 

Europe

 

North America

 

Latin America

 

Asia Pacific

 

Other countries

 

2012

Consolidated companies as of January 1

 

456

 

243

 

24

 

35

 

114

 

19

 

435

First-time consolidations

 

15

 

4

 

 

1

 

4

 

 

9

Deconsolidations

 

(36)

 

(23)

 

(2)

 

(7)

 

(15)

 

(1)

 

(48)

Consolidated as of December 31

 

435

 

224

 

22

 

29

 

103

 

18

 

396

We have filed a list of subsidiaries and associated companies, drawn up in conformity with sections 379 and 414 of Book 2 of the Netherlands Civil Code, with the Trade Registry of Amsterdam.

Assets and liabilities held for sale

 

 

 

In € millions

 

2012

Property, plant and equipment

 

187

Intangible assets

 

377

Other assets

 

357

Total assets

 

921

Total non-current liabilities

 

117

Total current liabilities

 

193

Total liabilities

 

310

Discontinued operations

In December 2012, we announced the divestment of the North American Decorative Paints business. The operating results for 2012 were a loss of €417 million after taxes. This includes the goodwill impairment charge of €372 million, recorded in the third quarter of 2012. We assessed the carrying value of the assets of Decorative Paints North America in light of the divestments and concluded that no impairment is necessary.

For 2012, we also incurred €19 million related to further settlements and tax-related costs from the divestments of businesses (Organon BioSciences, ICI businesses we acquired for resale to Henkel, National Starch) in previous years.

Discontinued operations

 

 

 

 

 

In € millions

 

2011

 

2012

Revenue

 

1,094

 

1,190

Expenses

 

(1,200)

 

(1,255)

Impairment

 

 

(372)

Results from operating activities

 

(106)

 

(437)

Income tax

 

39

 

20

Results from operating activities after tax

 

(67)

 

(417)

Results related to discontinued operations in previous years

 

(3)

 

(16)

Tax related to discontinued operations in previous years

 

11

 

(3)

Profit for the period/(loss)

 

(59)

 

(436)

Cash flows from discontinued operations

 

 

 

 

 

In € millions

 

2011

 

2012

Net cash from operating activities

 

(73)

 

(27)

Net cash from investing activities

 

(23)

 

(26)

Net cash from financing activities

 

 

Net cash from discontinued operations

 

(96)

 

(53)

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