(1) The value recognised for the shares belonging to the parent enterprise of an enterprise included in the consolidated financial statements are set off from the amount of the equity capital of the subsidiary enterprise attributable to these shares. The equity capital is to be recognised at the amount corresponding to the fair value of the assets, debt obligations, accrued and deferred items and special items to be reported in the consolidated financial statements, which is attributable to them at the point in time relevant for the set-off pursuant to subsection (2). Provisions are to be valued pursuant to section 253 (1) sentences 2 and 3 and (2), while deferred taxes are to be valued pursuant to section 274 (2).
(2) The set-off pursuant to subsection (1) is to be performed on the basis of the values recognised at the point in time at which the enterprise became a subsidiary enterprise. If it is impossible, at that point in time, to identify conclusively the valuations to be recognised, then they are to be adjusted in the course of the subsequent twelve months. Where a parent enterprise draws up consolidated financial statements for the first time, the values recognised at the time at which the subsidiary enterprise is included in the consolidated financial statements are to be taken as a basis, unless the subsidiary enterprise became a subsidiary enterprise in that year for which the consolidated financial statements are being drawn up. The same applies to instances in which a subsidiary enterprise is included in the consolidation for the first time, which inclusion had been previously waived pursuant to section 296. In exceptional cases, the values recognised pursuant to sentence 1 also may be taken as a basis in the cases governed by sentences 3 and 4; this is to be stated in the notes to the consolidated financial statements and the reasons therefor are to be provided.
(3) A difference remaining after the set-off is to be shown as goodwill in the consolidated balance sheet if it is reported under assets and, if it is itemised under liabilities, then it is to be shown in the item “Difference resulting from the consolidation of capital” following the equity capital. The items as well as any material changes in relation to the preceding financial year are to be explained in the notes to the consolidated financial statements.
(4) Shares in the parent enterprise belonging to an enterprise included in the consolidated financial statements are to be shown separately as a deduction in the consolidated balance sheet as own shares of the parent enterprise at their nominal value or, should no such nominal value exist, at their calculated value, in the summary column for the item “Subscribed capital.”