(1) A participating interest in an associated enterprise is to be recognised at book value in the consolidated balance sheet. The difference between the book value and the pro-rated equity capital of the associated enterprise, as well as any goodwill or difference shown under liabilities that may be included therein, are to be stated in the notes to the consolidated financial statements.
(2) The difference pursuant to subsection (1) sentence 2 is to be attributed to the values recognised for assets, debt obligations, accrued and deferred items and special items of the associated enterprise insofar as their fair value is higher or lower than their book value. The difference attributed pursuant to sentence 1 is to be carried, depreciated or reversed in the consolidated financial statements in accordance with the treatment of the values recognised for these assets, debt obligations, accrued and deferred items and special items in the annual financial statements of the associated enterprise. Section 309 is to be applied accordingly to any goodwill or difference shown under liabilities that remains after the attribution pursuant to sentence 1. Section 301 (1) sentence 3 applies accordingly.
(3) The value recognised for the participating interest as well as the difference are to be identified based on the values recognised at the point in time at which the enterprise became an associated enterprise. If it is impossible conclusively to identify the valuations to be applied as per this point in time, then they are to be adjusted in the course of the subsequent twelve months. Section 301 (2) sentences 3 to 5 applies accordingly.
(4) The value recognised for a participating interest that is identified pursuant to subsection (1) is to be increased or reduced in the subsequent years by the amount of the changes to the equity capital corresponding to the shares in the capital of the associated enterprise that belong to the parent enterprise; any distributions of profits attributable to the participating interest are to be deducted. The consolidated profit and loss account is to show the profit / loss attributable to the participating interests in associated enterprises in a separate item.
(5) Where the associated enterprise applies valuation methods in its annual financial statements that deviate from those applied in the consolidated financial statements, it is possible, for the purposes of subsections (1) to (4), to value those assets or debt obligations that have been valued differently pursuant to the valuation methods applied in the consolidated financial statements. Where the valuation is not adjusted, this is to be stated in the notes to the consolidated financial statements. Sections 304 and 306 are to be applied accordingly insofar as the factual circumstances material for the assessment are known or accessible.
(6) In each case, the most recent annual financial statements of the associated enterprise are to be used as a basis. Where the associated enterprise draws up consolidated financial statements, they are to serve as a basis and not the annual financial statements of the associated enterprise.