General Accounting Principles of the Combined Financial Statements
Full-Range Stores – Italy
The Management Board of RZF resolved in 2014 to pull back from the full-range business in Italy and sold the BILLA Italy business unit. Accordingly, this business unit was classified as a discontinued operation.
The business segment was unwound in subsequent years, with the exception of a few properties. During the financial year, one property with a residual value of 1.9 million euros was sold for 0.6 million euros. The loss on disposal was recognised under other operating expenses. As at 31 December 2017, it is no longer expected that the remaining properties will be sold. They are therefore no longer classified as held for sale. The reclassified amount was 7.4 million euros. This was measured at the amortised cost which would have been reported had the properties not been classified as available for sale. The 3.7-million-euro adjustment was recorded under income from continuing operations in the depreciation, amortisation and impairments line item. Of that amount, 0.2 million euros was also reclassified for other property, plant and equipment.
|in million €||As at 31 Dec. 2016||Change||Reclassifications||As at 31 Dec. 2017|
|Other property, plant and equipment||0.2||0.0||0.2||0.0|
This was presented in the previous year as a discontinued operation for the last time. The result amounted to 10.6 million euros, which was attributable exclusively to the shareholders of the parent.
Consumer Electronics (ProMarkt)
In financial year 2013, the operating activities of the consumer electronics business segment were discontinued and unwound in subsequent years. This was presented in the previous year as a discontinued operation for the last time. The result amounted to 1.0 million euros, which was attributable exclusively to the shareholders of the parent.
The BILLA Romania business segment was classified as a discontinued operation in 2015.
The result from this discontinued operation amounted to 6.8 million euros in the previous year, which was attributable exclusively to the shareholders of the parent.
In the course of the deconsolidation, 18.8 million euros in exchange rate effects were recognised in profit or loss during the previous year which had previously been recognised directly in equity.
With the decision to exit the market and thus close PENNY Bulgaria, this business unit was classified as a discontinued operation in the previous year. The income statement items for the previous year have been reclassified for the final time in accordance with the provisions of IFRS 5.
The result from this discontinued operation amounted to 7.4 million euros, which was attributable exclusively to the shareholders of the parent.
BILLA Croatia was classified as a discontinued operation in the previous year. The assets and liabilities held for sale have been presented in combined form in the balance sheet and separately from the other assets and liabilities. It was deconsolidated as at 31 March 2017.
|in million €||2017||2016|
|Loss from the discontinued operation||-4.0||-55.6|
The result of this discontinued operation is attributable exclusively to the shareholders of the parent company. During the financial year, the results included 1.1 million eurosin income tax expenses (previous year: 6.5 million euros income).
The disposal loss resulting from the discontinued operation was broken down as follows:
|in million €||2017|
|Assets as at 31 December 2016||64.5|
|Changes from 1 January to 31 March 2017||9.5|
|Non-recurring effect from continuing operations||5.6|
|Loss on the disposal of the discontinued operation||-4.0|
In connection with the disposal of this discontinued operation, provisions amounting to 3.5 million euros were recognised under liabilities from non-current assets held for sale and disposal groups.
Prior to reclassification in accordance with IFRS 5, all income and expenses from intra-Group transactions were eliminated between the discontinued and continuing operations.
|in million €||2017||2016|
|Cost of materials||5.6||25.8|
The three properties classified as held for sale as at 31 December 2016 were sold at the carrying amount in the financial year. During the financial year, a further three properties held by Retail International were classified as held for sale. Their fair values totalled 1.8 million euros. All properties have been measured pursuant to the provisions of IFRS 5.
Pursuant to the agreement dated 22 December 2016, REWE-Beteiligungs-Holding International GmbH, Cologne, sold all shares in UAB Palink, Vilnius, Lithuania. The sale comprised variable purchase price components and is subject to the relevant antitrust approvals. The final disposal price can therefore only be determined after the transfer of ownership is completed. Due to the intention to sell, the equity investment was already classified during the previous year as held for sale and measured at a fair value less costs to sell of 80.0 million euros. Prior to its reclassification, the equity investment was accounted for in accordance with the equity method. The expected sale proceeds less costs to sell was classified as level three of the fair value hierarchy. The deal is expected to close in the first half of 2018.