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 2021 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 2020.
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 2020.
The company started applying the following new standards on 1 January 2021:
- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform – Phase 2
- Amendments to IFRS 16: Covid-19-Related Rent Concessions (Amendment to IFRS 16)
No effects on the Interim Consolidated Financial Statements arose from the application of these new provisions.
The following amendments to standards can be applied on a voluntary basis for the financial year under review. They have not been applied by HHLA:
- Amendments to IFRS 3, IAS 16, IAS 37 and Annual Improvements 2018-2020
Impairment of assets
The goodwill attributable to the Logistics segment resulted from the acquisition of Bionic Production GmbH, Lüneburg (Bionic). Due to the global impact of the coronavirus pandemic and delays to certain projects, the Executive Board of Hamburger Hafen und Logistik Aktiengesellschaft (HHLA) recalculated the recoverable amount of the CGU Bionic in the second quarter at € 14,098 thousand. An impairment loss in the amount of € 994 thousand was recorded for the CGU Bionic, reducing the carrying amount of the goodwill attributable to the CGU Bionic to € 3,988 thousand (previous year: € 4,982 thousand).
The recoverable amount was determined using the fair value less costs of sale. The measurement is classed as level 3 of the fair value hierarchy due to the non-observable inputs used in the measurement.
Unobservable input factor |
|
Values assigned to the key assumption as of 30 June 2021 (31 December 2020) |
|
Approach to determining the assumption |
|---|---|---|---|---|
Disposal costs |
|
€ 282 thousand |
|
Estimated on the basis of the company's experience with the sale of assets |
Cash flow forecast period |
|
4.5 years (9 years) |
|
9-year forecast approved by the Executive Board of HHLA AG, prepared by the management |
Capitalisation interest rate |
|
9.91 % (8.66 %) |
|
Illustrates the specific risks |
Long term growth rate |
|
1 % (1 %) |
|
Denotes the weighted average growth rate used to extrapolate cash flows beyond the forecast period |
As there were no indications for an impairment of the other CGUs, the Executive Board did not update the other impairment calculations.
Earnings from associates accounted for using the equity method in the amount of € 1,335 thousand of the HHLA Group’s income statement include an impairment of € 1,190 thousand on an investment in a company allocated to the Logistics segment.
3.3 Changes in the group of consolidated companies
As of 31 March 2021, the companies acquired in January 2021 – HHLA PLT Italy S.r.l., Trieste, Italy, und iSAM AG, Mülheim an der Ruhr, and its three subsidiaries – were added to HHLA’s group of consolidated companies. The companies are fully consolidated. Further information about the acquisition of the companies can be found under Note 4.
No other changes in the group of consolidated companies took place during the reporting period.