Commercial register: Antwerp no. 222.348
Enterprise no.: 0220.324.117
Date of formation: 25/02/1980
Financial year: 1 April 2011 to 31 March 2012
Financial servicing: KBC Bank
Number of shares (31 March 2012): 23 176 005
Limited consolidation versus statutory consolidation
From the 2005 financial year onwards Gimv has been required to prepare its consolidated annual financial statements in accordance with the International Financial Reporting Standards (IFRS), as approved for application in the European Union. The Group has opted, after the transition to IFRS, to continue presenting two kinds of consolidated accounts: the ‘statutory’ consolidation and a ‘limited’ consolidation.
A significant impact of the transition to IFRS is that a number of companies in the investment portfolio which the Gimv group is deemed to control in accordance with IAS 27 (scope of consolidation) have to be fully consolidated. Given that these investments have been made expressly with a view to creating capital gains and generating income, we believe that the consolidation of enterprises included in the investment portfolio is not a relevant yardstick for measuring the Gimv group’s performance and can even be potentially misleading. The companies in question are OGD, Grandeco Wallfashion Group, Verlihold, Numac Investments, VCST and OTN Systems, which we refer to hereafter as majority shareholdings.
Gimv regrets that the IASB, in its improvements project, has still failed to include an exception for the consolidation of investment companies on the lines of those included for associates and joint ventures. Such an exemption from consolidation exists, for example, under US GAAP and Australian GAAP.
In the light of the first-time application of ‘IAS 1 revised’ we note that Gimv does not have any items that need to be included in a separate statement of realised and unrealised profits. The changes in translation differences are presented separately in '3. Statement of changes in consolidated equity' in accordance with IAS 39.
To meet the information needs of annual report readers, we consider it necessary to produce a second set of financial statements in addition to the consolidated annual statements prepared in accordance with IFRS as approved by the European Union. This 'limited' consolidation fully consolidates only the investment company subsidiaries; the other companies which under IAS 27 Gimv is deemed to control, but which belong to the investment portfolio, are valued at fair value in accordance with the international valuation guidelines for private equity companies.
The consolidated financial statements are expressed in thousands of euros unless otherwise mentioned.
The consolidated financial statements of Gimv NV at 31 March 2012 were approved for publication by the board of directors on 15 May 2012.
Impact of new or amended standards applicable after 31 March 2011
The basic principles of financial reporting are consistent with those of the previous year.
The following new and amended IFRS standards and IFRIC interpretations, where relevant to Gimv, have been applied from 1 April 2011:
- IFRS 1 - First Time Adoption of IFRS - Severe hyperinflation and removal of fixed dates for first-time adopters, applicable from 1 July 2011;
- IFRS 7 - Financial Instruments - Transfer of financial assets, applicable from 1 July 2011;
- IAS 12 - Income tax - Recovery of assets, applicable from 1 January 2012;
The above changes have no impact on the financial statements of Gimv.
Significant judgements and estimates
In putting together the balance sheet and income statement, estimates or assumptions are often made that influence the assets or liabilities reported at balance sheet closing date and the income and charges for the reporting period. Although such estimates are made in a rational fashion, based on management’s knowledge of the business, it is possible that actual figures will differ from the estimated figures. The largest risk of material adaptations relates to the estimates made in determining the fair value of the financial assets and loans to companies in the investment (done in accordance with the valuation rules described in item 5.11).