The condensed interim Consolidated Financial Statements of the KION Group for the three months ended 31 March 2012 were prepared consistent with IAS 34 'Interim Financial Reporting' and the other International Financial Reporting Standards (IFRSs) as adopted by the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council on the Application of International Accounting Standards for Interim Financial Information. In accordance with IAS 34, a condensed set of interim financial statements has been prepared.
All of the IFRSs and IFRICs that were issued as at the reporting date and that were required to be applied in the 2012 financial year were applied in preparing the condensed consolidated interim financial statements. These condensed consolidated interim financial statements do not contain all the information and disclosures required of a set of consolidated financial statements and should therefore be read in conjunction with the consolidated financial statements prepared for the year ended 31 December 2011. With the exception of the new IFRS standards and interpretations described below, the accounting policies used to prepare these condensed consolidated interim financial statements were the same as those used to prepare the consolidated financial statements for the year ended 31 December 2011.
Amendments to IFRS 7 'Financial Instruments: Disclosures', disclosures relating to transfers of financial assets.
IFRIC 20 'Stripping Costs in the Production Phase of a Surface Mine'.
In order to improve the clarity of presentation, certain items are aggregated on the face of the statement of financial position and income statement. The items concerned are disclosed and explained separately in the notes. In accordance with IAS 1.60, assets and liabilities are categorised based on current and non-current items. The condensed consolidated income statement is prepared in accordance with the cost of sales (function-of-expense) method.
The reporting currency is the euro. All amounts are disclosed in thousands of euros (€ thousand) unless stated otherwise. The addition of the totals presented may result in rounding differences of +/- €1 thousand.
The basis for internal reporting is a presentation of the financial position and financial performance based on data from continuing operations, excluding items relating to the KION Group in December 2006 and excluding Non-recurring Items. In addition to the above items, other net financial income/expenses and the share of profit (loss) of equity investments were also excluded from the performance indicator known as 'EBIT Management Reporting'. Segment reporting therefore included a reconciliation of externally reported consolidated earnings before interest and tax (EBIT) including KION acquisition items and Non-recurring Items with the adjusted EBIT for the segments ('EBIT Management Reporting').
Management reporting EBIT differed from adjusted EBIT for the last time in 2011 that did not take into account of the share of profit (loss) of equity investments or other net financial income/expenses. Since 2012 EBIT Management Reporting will correspond to the adjusted EBIT.