How it all began:
Since the end of April 2014 BUWOG AG has been listed as an independent company on the stock exchanges in Frankfurt, Vienna and Warsaw as the result of a spin-off from IMMOFINANZ Group. Since then, there has been a requirement to produce a consolidated financial statement for BUWOG Group in accordance with international accounting norms – more accurately put, in accordance with the International Financial Reporting Standards (IFRS). In order to meet these new requirements a consolidation division with now five employees has been set up.
What we specifically do in consolidation – we communicate internally and externally:
External communication takes place, among other things, by means of the consolidated financial statements as well as interim consolidated financial statements. A consolidated financial statement is essentially an annual financial statement which includes all legally independent, but economically interdependent BUWOG companies and represents them as if they operated as a single legally independent company. In other words: a consolidated financial statement is created by combining the individual financial statements of all BUWOG affiliates produced in accordance with IFRS rules into an aggregated financial statement and then adjusting it for all internal corporate relationships (of an operational and financial kind).
The most important function of the consolidated financial statement is informing all recipients of the statement about the economic situation of our group, therefore it constitutes an important instrument of communication with the capital market. In order to contribute to transparent communication, all important items of the financial and income statement are explained in the notes.
Internal communication consists primarily of a regular exchange of information with individual divisions, for example, obtaining all necessary information on the operational business and financial transactions from accounting, controlling as well as the financing division and reflecting them properly in the consolidated financial statement.
Sounds less exciting at first – but cross-border corporate links and the growth strategy of BUWOG Group, steadily changing standards (IFRS) and national accounting regulations as well as strict capital market requirements continually lead to new, multifaceted and challenging tasks in corporate accounting.
With the support of all colleagues from other divisions, BUWOG Group’s first separate consolidated financial statement was completed on 31 August 2014 and with now three consolidated interim reports is published on our homepage. The link can be found at http://www.buwog.com/en/investor-relations/financial-reports.
BUWOG Group’s second separate consolidated financial statement will be published on 31 August 2015.