2.4 Consolidation principles
2.4.1 Method of consolidation
The consolidated financial statements comprise the financial statements of Züblin Immobilien Holding AG and its subsidiaries for the financial year ending on 31 March. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.
Subsidiaries are consolidated from the date of acquisition, i.e. from the date on which the Group obtains control of the subsidiary.
Business combinations are accounted for using the acquisition method. The cost of an acquired business is equal to the total consideration transferred measured at fair value at the date of acquisition plus non-controlling equity interests. The acquirer measures the non-controlling equity interests either at fair value or as the proportionate share of the identifiable net assets of the acquired company. The costs incurred in the course of the business combination are recognized as an expense.
2.4.2 Scope of consolidation
The composition of the group of consolidated entities is set out in note 1.2 List of Group companies. There were no changes in the scope of consolidation in the financial year.
2.4.3 Translation of foreign currencies
Foreign currency transactions
All transactions are converted using the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are recognized at the rate prevailing on the balance sheet date. Non-monetary items valued at historical cost are converted using the rate prevailing on the transaction date, and non-monetary items measured at fair value are converted using the rate applicable as of the date of the calculation of fair value. Differences arising from conversion to closing rates are recognized in the income statement.
Foreign subsidiaries
The conversion of the financial statements of consolidated Züblin Group companies that are prepared in foreign currencies is performed based on the functional currency concept. As of the balance sheet date, the financial statements of the consolidated Züblin Group companies are translated from the functional currency into the reporting currency. The financial statements of foreign subsidiaries are converted as follows: the balance sheet is converted at the year-end rates, while income and expenses are converted at the average exchange rates for the reporting year. The effects of these conversions are recorded directly in the consolidated statement of comprehensive income in the position “Currency translation adjustment”. Conversion differences relating to Züblin Group internal loans, where repayment is not anticipated in the foreseeable future, or is unlikely, and which are consequently qualified as net investments in a foreign company, are also recognized directly in the consolidated statement of comprehensive income in the position “Currency translation adjustments”.
As in the previous year, all foreign subsidiaries currently have no operating activities. The functional currency is the Swiss Franc.
Balance sheet rate CHF/EUR as of 31.3.2024: CHF 0.9765 (previous year: CHF 0.9978)
Average rate CHF/EUR for 1.4.2023–31.3.2024: CHF 0.9607 (previous period: CHF 0.9937)
