2.3 S ummary of Significant Ac counting Policies
The principle accounting policies applied in the preparation of these consolidated financial statements are described below.
These policies have been consistently applied for all financial years presented except as explained in Note 2.2.
In the event of the presentation of discontinued operations, the comparative income statement is re-presented as if the operation
presented as discontinued operations during the period had been discontinued from the start of the comparative period (see Note
5.3).
Principles of Consolidation
Subsidiaries are all entities - including special purpose entities - over which the Group has - directly or indirectly - the power to
govern the financial and operating policies, which is generally accompanying a shareholding of more than half of the voting
rights. The existence and effect of potential voting rights that would be exercisable or convertible at year-end, if any, are
considered when assessing whether the Group controls another entity. All subsidiaries are fully consolidated from the date of
acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date such control
ceases. For a list of all subsidiaries, see Note 36.
Joint ventures are entities over whose activities the Group has joint control, established by contractual agreement and requiring
unanimous consent for strategic, financial and operating decisions. Joint ventures are proportionally consolidated from the date
joint control is established until such joint control ceases (see Note 36).
The G roup currently holds no investments in entities over which Delhaize Group has significant influence, but no control
associates
The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in
similar circumstances. Accounting policies of subsidiaries or joint ventures have been adjusted, where necessary, to ensure
consistency with the policies adopted by the Group.
All intragroup balances and transactions are eliminated in full when preparing the consolidated financial statements.
Non-controlling interests (also referred to as "minority interests") represent the portion of profit or loss and net assets that is not
held by the Group and are presented separately in the consolidated income statement and within equity in the consolidated
balance sheet, separately from the parent shareholders' equity. Transactions with non-controlling interests that do not result in
loss of control are accounted for as transactions between shareholders and therefore have no impact on profit or loss (this
applies also to related acquisition costs) nor on goodwill. The difference between fair value of any consideration received or paid
and the relevant share acquired or disposed of the carrying value of net assets of the subsidiary is recorded directly in retained
earnings.
Business Combinations and Goodwill
In accordance with IFRS 3, business combinations are accounted for using the acquisition method. Under this method, the cost
of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the
amount of any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling
interest in the acquiree, that present ownership interests and that entitle their holders to a proportionate share of the entitys net
assets in the event of liquidation, either at fair value or at the proportionate share of the acquiree's identifiable net assets.
Acquisition costs incurred are expensed and included in "Selling, general and administrative expenses." When Delhaize Group
acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation based
on the facts and circumstances at the acquisition date (except for lease and insurance agreements, which are classified on the
basis of the contractual terms and other factors at the inception of the respective contract). This includes the separation of
embedded derivatives in host contracts by the acquiree. If the business combination is achieved in stages, the acquisition date
fair value of t he acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date
through profit or loss. Any contingent consideration to be transferred by the acquirer will be initially recognized and subsequently
measured at fair value. Goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred
and the amount recognized for non-controlling interests over the net identifiable assets acquired and liabilities assumed. If this
consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss.
Afte r i nitial recognition, goodwill is not amortized, but annually reviewed for impairment and whenever there is an indication that
goodwill may be impaired. For the purpose of testing goodwill for impairment, goodwill is allocated to each of the Group's ca sh
generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or
liabilities of the acquiree are assigned to those units.
Non-current Assets D isposal Groups Held for Sale and Discontinued Operations
Non-current assets and disposal groups are classified and presented in the balance sheet as held for sale if their carrying
amount will be recovered through a sale transaction rather than through continuing use.
76 DELHAIZE GROUP FINANCIAL STATEMENTS'12
