1. Principles of Group Accounting
BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesell-schaft von 1877-, Bremen (BLG AG), and BLG LOGISTICS GROUP AG & Co. KG, Bremen (BLG KG), two companies that are legally, economically and organizationally closely affiliated due to their identical management bodies and special ownership structure, form the head of the BLG Group (BLG LOGISTICS). As BLG AG does not consider control over BLG KG to exist within the meaning of IFRS 10, it prepares consolidated financial statements (combined financial statements) together with BLG KG under the name BLG LOGISTICS with BLG AG and BLG KG as a single parent.
The consolidated financial statements for BLG LOGISTICS for the 2020 financial year were prepared in accordance with the International Financial Reporting Standards (IFRSs) adopted and published by the International Accounting Standards Board (IASB) and their interpretations by the IFRS Interpretations Committee (IFRICs). The application of these standards became mandatory on December 31, 2020. All IFRSs and IFRICs were observed that have been published and adopted in the endorsement process of the European Union and whose application is mandatory.
The accounting policies were applied consistently by all Group companies for all periods specified in the consolidated financial statements.
The financial year of BLG AG and BLG KG and of their consolidated subsidiaries is the calendar year. The reporting date of the consolidated financial statements is the closing date of the preparing companies.
The companies BLG AG (HRB 4413) and BLG KG (HRA 21448), which are entered in the Commercial Register of the District Court of Bremen, have their registered office at Präsident-Kennedy-Platz 1, Bremen, Germany.
The consolidated financial statements are prepared in euros. All amounts are in EUR thousand unless otherwise indicated.
The consolidated financial statements were prepared on the basis of historical acquisition costs; exceptions arise only for derivative financial instruments and financial instruments classified as “measured at fair value through profit or loss or through other comprehensive income”.
The Board of Management of BLG AG submitted the consolidated financial statements to the Supervisory Board on March 30, 2021. The Supervisory Board has the task of reviewing the consolidated financial statements and stating whether it approves them.
Judgments and estimates
The preparation of the financial statements in conformity with IFRSs requires estimates and the exercise of discretion in individual matters by management that may have an impact on the amounts reported in the consolidated financial statements.
Judgments
Information on judgments in applying the accounting policies that have the greatest material effect on the amounts reported in the consolidated financial statements is included in the following notes:
- Determining whether control exists (notes 38 and 39)
- Classification of joint arrangements (notes 15 and 39)
Assumptions and estimation uncertainties
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate in particular to the following notes:
- Calculation of useful lives of property, plant and equipment and intangible assets and costs of demolition obligations for property, plant and equipment
(notes 12 and 13)
- Impairment testing of assets and measurement of goodwill (note 12)
- Estimations to determine the duration and expected payments for residual value guarantees as well as lease interest rates (note 14)
- Recognition of deferred tax assets
(note 33)
- Estimation of parameters for impairment of property, plant and equipment, intangible assets, right-of-use assets and financial assets
(notes 4, 12, 14, 16 and 18)
- Material actuarial assumptions
(note 26)
- Discretion in measuring provisions and contingent liabilities (notes 29 and 24)
The estimates made were largely based on historical data and other relevant factors, including the going concern principle. Actual results may differ from these estimates.
Determination of fair values
The financial instruments of the Group accounted for at fair value are allocated to different levels of the fair value hierarchy based on the measurement method used; these levels are defined as follows:
- Level 1: Listed (unadjusted) prices in active markets for identical assets and liabilities
- Level 2: Techniques for which all inputs which have a material effect on the recognized fair value are either directly or indirectly observable
- Level 3: Techniques using inputs that have a material effect on the recognized fair value and are not based on observable market data
More information on the assumptions made in determining the fair values can be found in note 32.
Changes in accounting policies
The accounting policies applied were essentially unchanged compared with the policies applied the previous year. In addition, the Group applied the following new/revised standards that are relevant to BLG LOGISTICS and whose application was mandatory for the first time in the 2020 financial year:
|
Amendments to IFRS 3 “Business Combinations”
|
January 1, 2020
|
|
Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition and Measurement” and IFRS 7 “Financial Instruments: Disclosures” (Interest Rate Benchmark Reform)
|
January 1, 2020
|
|
Amendments to IAS 1 “Presentation of Financial Statements” and IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” (Definition of Material)
|
January 1, 2020
|
|
Amendments to Notes to the Conceptual Framework in IFRS Standards
|
January 1, 2020
|
Effects of changes in accounting policies
The new/revised standards had no material impact. For this reason, the amounts from the previous year have not been restated.
Non-mandatory application of new or amended standards and interpretations
Application of the following standards and interpretations which were previously adopted, revised or recently issued by the IASB was not yet mandatory in 2020:
|
Amendments to IFRS 3 “Business Combinations”(Reference to the IFRS Conceptual Framework)
|
|
Amendments to IFRS 4 “Insurance Contracts”(Extension of the Temporary Exemption from Applying IFRS 9)
|
|
Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition and Measurement”, IFRS 7 “Financial Instruments: Disclosures, IFRS 4 “Insurance Contracts” and IFRS 16 “Leases” (Interest Rate Benchmark Reform - Phase 2)
|
|
Amendments to IFRS 16 “Leases”(COVID-19-Related Rent Concessions)2
|
|
IFRS 17 “Insurance Contracts”
|
|
Amendments to IFRS 17 “Insurance Contracts”
|
Amendments to IAS 1 “Presentation of Financial Statements”
(Classification of Liabilities as Current or Non-Current)
|
|
Amendments to IAS 1 “Presentation of Financial Statements” and IFRS Practice Statement 2 “Making Materiality Judgements” (Practice Statement)
|
|
Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” (Definition of Accounting Estimates)
|
|
Amendments to IAS 16 “Property, Plant and Equipment” (Proceeds before Intended Use)
|
Amendments to IAS 37 “Provisions, Contingent Liabilities and contingent Assets”
(Onerous Contracts – Cost of Fulfilling a Contract)
|
|
Various standards: Annual Improvements Project 2018-2020
|
1Date of initial application in accordance with EU law, where already adopted into EU law.
2The IASB has proposed extending the practical relief on COVID-19-related rent concessions until June 30, 2022. The amendment is to apply for annual reporting periods beginning on or after April 1, 2021.
BLG LOGISTICS plans to observe the new standards and interpretations in the consolidated financial statements with the exception of the amendments to IFRS 16 “Leases”, which were applied early, from the date on which their initial application is mandatory. The new standards and interpretations that are relevant to the Group’s operations will have an impact on the way in which the Group’s financial information is published; however, they will not have any material effects on the recognition and the measurement of assets and liabilities or the presentation of the results of operations in the consolidated financial statements. The effects of applying the “COVID-19-related rent concessions” practical relief are described in note 14.
