2) Principles of consolidation


The unaudited interim consolidated financial statements of the Repower Group as at 30 June 2015 have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. The interim consolidated financial statements do not include all the information disclosed in the consolidated annual financial statements, and should therefore be read in conjunction with the consolidated annual financial statements as at 31 December 2014.

Foreign currencies have been translated into Swiss francs at the following closing exchange rates and average exchange rates:

    Closing exchange rate Average exchange rate
Currency Unit 30.06.2015 1.1.-30.06.2015
BAM 1 0.53180 0.54083
CZK 100 3.82000 3.84261
EUR 1 1.04130 1.05813
GBP 1 1.46700 1.44194
HRK 100 13.70800 13.87253
HUF 100 0.33030 0.34377
MKD 100 1.68040 1.71361
PLN 100 24.84000 25.53422
RON 100 23.31491 23.77341
RSD 1 0.00868 0.00876
USD 1 0.93530 0.94685

Unrealised gains and losses on transactions resulting from exchange rate fluctuations between group companies are recognised in the consolidated cash flow statement under other income and expenses not affecting cash.

Accounting and valuation principles

With the exception of the new or revised standards applied for the first time that are outlined in the following section, the accounting and valuation principles used in these interim consolidated financial statements correspond to the principles applied in the consolidated annual financial statements as at 31 December 2014:

New and revised accounting and valuation principles

The revised IAS 19 Employee Benefits is to be applied for the 2015 financial year. The amended standard offers the option of measuring pension fund obligation without applying risk sharing. Repower has not made use of this option.

The 2010-12 and 2011-13 improvements cycles have no material impact on Repower's financial reporting.

Restatement of the consolidated cash flow statement

In the 2015 financial year Repower has revised the presentation of the cash flow statement in the interests of better comparability. The changes in the presentation (restatement) of the consolidated cash flow statement reflect standard industry practice. Prior-year information has been adapted to the modified structure, and corrections have been made.

Dividends and interest received, and interest paid out, are no longer recognised as cash flow from operating activities; instead they are recognised separately under cash flow from investing activities and cash flow from financing activities. The calculation of cash flow from operating activities is now done on the basis of income before income taxes, and income taxes paid are recognised as a separate item within cash flow from operating activities.