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Deutsche EuroShop - Annual Report 2006


Significant Accounting Policies

Non-current financial assets

Non-current financial assets are classified as available for sale and consist exclusively of the Other investments item under the HGB. Investments over which Deutsche EuroShop AG does not exercise control are measured at fair value, in line with the provisions of IAS 39. The measurement gains and losses are recognised directly in equity. The fair value of financial instruments for which there are no quoted market prices is estimated on the basis of the market values of the properties determined by appraisals, less net indebtedness. The determination of fair value assumes the existence of a going concern.

For reasons of materiality no fair value is reported for the investments in City-Point Beteiligungs GmbH, Pöcking, and in Kommanditgesellschaft Sechzehnte ALBA Grundstücksgesellschaft mbH & Co., Hamburg. In addition, our Polish property holding company acquired an interest in CASPIA Investments Sp. zo.o. in Poland in November 2006. This is a property company with no significant business operations and has therefore not been included in the consolidated financial statements. These investments are carried at cost.

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