Notes to Consolidated Financial Statements
82
Companies Included in
Consolidation
Werkzeugbau (machine &toolmaking the basis of historical exchange rates
company) Zuffenhausen AG, Stutt•
gart, were merged, and the Woh-
nungsbau (residential construction
company) GmbH, Weinstrasse Met-
for fixed assets at the time of acquisi•
tion, and at year-end exchange rates
for current assets, liabilities and un•
appropriated surplus. Stockholders'
The consolidated financial state•
ments basically include all domestic
and foreign subsidiaries in which
Daimler-Benz AG (hereinafter refer•
red to as DBAG) has a direct or
indirect interest of more than 50 %.
The consolidated financial state•
ments, as submitted and including
DBAG, comprise 19 (last year 22)
domestic companies and 85 (last
year 83) foreign companies (see
page 88f).
tingen, Esslingen a. N., was combined equity in D-marks is the remaining dif•
with Maschinenfabrik (machine man• ference between translated assets less
ufacturing) Esslingen AG, Esslingen
a. N., through reorganization.
translated liabilities and less approp•
riated surplus.
Abroad, three retail companies
were merged with Mercedes-Benz
Belgium; a real estate company in
France ceased operations during the
year. The Chemie- und Textil-
As a result of foreign exchange
fluctuations between balance sheet
dates of individual local currencies
in relation to the D-mark, changes in
the D-mark net equity always occur
Gesellschaft mbH (chemical and tex• when its amount differs from the
tile company) was sold to MTU
amount of fixed assets translated
Motoren- und Turbinen-Union, Muen- at historical exchange rates.
As in previous years, we did not
consolidate certain foreign compa•
nies that had no or only negligible
chen GmbH and is thus no longer
business activities. These companies included in consolidation.
had no transactions which would
Because portions of current assets
are also financed with equity capital
at some foreign subsidiaries, they
produce negative translation differ•
ences - largely from the high devalua•
tions of the South American curren•
cies vis-a-vis the D-mark - and
have had a material effect on the
corporation's consolidated financial
statements. The following companies
which are providing old-age pension
benefits to our employees were not
included in consolidation as they are
not considered subsidiaries under
the law (Section 18, Sub-Section 1,
Clause 1 of the Company Act):
Principles of Consolidation
Classification and Valuation
positive translation differences from
revaluations, particularly of the U.S.
The individual domestic financial
statements included in the consolida• dollar vis-a-vis the D-mark. This left a
tion were classified in compliance
with the statutory requirements of the
substantial negative translation differ•
ence which was, as in prior years,
charged to profit and loss. This charge
thus neutralizes the high inflationary
Daimler-Benz Unterstuetzungskas- Company Act, and were certified by our
se GmbH, Stuttgart
outside auditors. As in prior years, the
individual foreign financial statements profits, notably those of our Brazilian
which were prepared and certified companies.
Revenues and expenses are trans•
Holzindustrie Bruchsal Unterstuet-
zungskasse GmbH, Bruchsal
-
in accordance with the laws of the
respective countries - have, for con•
solidation purposes, been reclassi•
fied to conform to the presentation
requirements of the Company Act,
and have been valued according to
methods uniformly applied to all con•
solidated companies.
Bruehler Unterstuetzungsgesell-
schaft mbH der Wuerttembergischen
Baumwoll-Spinnerei und -Weberei
bei Esslingen a. N., Esslingen a. N.
The companies included in consol•
idation were increased at home, by
one service company and abroad by
three retail companies and two real
estate companies. In Germany, the
Baumwoll-Spinnerei und -Weberei
lated at average annual exchange
rates. Excepted are depreciation char•
ges for fixed assets and gains and
losses from fixed asset disposals,
which are translated at historical rates.
The translation difference of balance
sheet and profit and loss items at
different rates was reflected in the
income statement. The uniform valua•
tion method used in consolidation
produces different results than those
shown in local currencies.
Currency Translation
(cotton spinning and weaving com•
pany) bei Esslingen am Neckar, Ess•
lingen a. N., and the Maschinen-
The accounts of foreign subsidi•
aries are translated into D-marks on