3. Consolidation, Accounting and Valuation Principles

3.1 Basis for Preparation of the Financial Statements

The Condensed Interim Consolidated Financial Statements for the period from 1 January to 30 June 2017 were prepared in compliance with the rules of IAS 34 Interim Financial Reporting.

The IFRS requirements that apply in the European Union have been met in full.

The Condensed Interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of 31 December 2016.

3.2 Principal Accounting and Valuation Methods

The accounting and valuation methods used for the preparation of the Condensed Interim Consolidated Financial Statements correspond to the methods used in the preparation of the Consolidated Financial Statements as of 31 December 2016. The company did not start applying any new standards on 1 January 2017.

The following new standards can be applied on a voluntary basis for the financial year under review. These have not been adopted by HHLA:

• IFRS 9 Financial Instruments
• IFRS 15 Revenue from Contracts with Customers

Adoption of the above-mentioned standards is mandatory for financial years which begin on or after 1 January 2018. Based on the current project status, the HHLA Group does not expect any material changes resulting from the initial application of the IFRS 9 standard. Similarly, based on the current project status, the application of IFRS 15 is not expected to result in any material changes to revenue from contracts with customers compared with the current method of accounting.

3.3 Changes in the Group of Consolidated Companies

There were no changes in the group of consolidated companies at HHLA as of 30 June 2017.