Scope and method of consolidation
The consolidated financial statements consist of the annual financial statements of CPH Chemie + Papier Holding AG, Perlen and of those CPH Group member companies in and outside Switzerland in which CPH Chemie + Papier Holding AG, Perlen directly or indirectly holds more than 50 % of voting rights. The balance sheet date for all CPH Group member companies is 31 December. In accordance with the Purchase Method used for fully consolidated companies, assets and liabilities and income and expenditures are incorporated in full. Intercompany balances and transactions have been eliminated. The shares of minority shareholders or minority partners in the equity and in the results of consolidated companies are shown separately but also as part of the consolidated equity and result. Intermediate profits on stocks from intragroup deliveries have been eliminated.
Group member companies acquired in the course of the year are consolidated from the date of CPH’s assumption of control. Group member companies disposed of in the course of the year are deconsolidated from the date of CPH’s cession of control. When a company is acquired, its net assets are determined at their current value and integrated using the Purchase Method. The resulting goodwill is offset against equity. In the case of successive acquisitions of minorities, the goodwill is determined separately for each acquisition step. If the purchase price of an acquisition includes elements that are linked to future earnings, the value of these elements is estimated as accurately as possible at the time of acquisition for goodwill calculation purposes. Should there be deviations from these estimates when the final purchase price is determined, the goodwill offset against group equity is adjusted accordingly.
For the scope of consolidation and changes thereto in 2021, please see Note 29 in the ‘Additional information on the consolidated financial statements’ and the ‘List of major shareholdings’.
Foreign currency translation
The consolidated financial statements are presented in Swiss francs (CHF). The financial statements of the Group’s constituent companies are presented in the local currency. The financial statements of subsidiaries which are in currencies other than the Swiss franc are translated into Swiss francs as follows:
All assets and liabilities on the balance sheets are translated into Swiss francs at the exchange rate ruling on the balance sheet date (the Effective Date Method). Any differences arising from the use of differing translation rates in the course of such translation are taken to equity. Foreign-currency income and expenditure in the income statements are translated at the average rates ruling for the year. Any translation differences resulting from the application of different exchange rates in the balance sheet (effective date) and the income statement (average rate) are taken to equity with no impact on the income statement. In the event of the disposal of a foreign subsidiary, the associated translation differences to date are taken straight to the income statement. Any translation differences arising from long-term intragroup financing of an equity nature are also taken directly to group equity.
Positions held in foreign currencies are translated using the Effective Date Method. All assets and liabilities are translated at the exchange rate ruling on the balance sheet date. Transactions in foreign currencies are translated at the exchange rate ruling on the date of the transaction. The effects of these foreign currency adjustments are taken straight to the income statement.
For the most important foreign currencies, the following CHF translation rates were used: