EBIT
Abbreviation for ‘earnings before interest and taxes.’ In Bilfinger Berger’s accounting, EBIT is used as a performance measure for the profits from operating activities.
Equity consolidation
A method of including minority interests in associated companies and joint ventures in the consolidated financial statements. The investment is initially recognized at cost and adjusted thereafter for the investor’s share of changes in the investee’s equity. These changes are generally shown in the Group’s income statement.
Equity ratio
Key figure for a company’s financing structure, stating the ratio between equity and total assets.
Fair value
The amount for which an asset could be sold or a liability could be settled between knowledgeable, willing and independent parties.
Goodwill
The difference between the amount paid for a company and the market value of its net assets. It arises as a result of taking into consideration a company’s expected future earnings when deciding on a suitable price for it. Goodwill is capitalized under fixed assets and subjected to annual impairment tests in accordance with IFRS 3 / IAS 36.
IASB
Acronym of International Accounting Standards Board. This institution was established in London in 1973 with the task of creating the International Financial Reporting Standards (IFRS).
IFRIC
Acronym of the International Financial Reporting Interpretations Committee. IFRIC is based in London and is responsible for specifying the details of how IFRSs should be interpreted.
IFRS
Acronym of the International Financial Reporting Standards, which were created to facilitate the international comparison of companies’ accounts and financial reporting. Since 2005, pursuant to the European Union’s so-called IAS Directive, application of the IFRS is mandatory for the consolidated financial statements of listed companies domiciled in the European Union. The IFRS also include those standards of the International Accounting Standards (IAS) which have not yet been superseded.
ISIN code
Abbreviation for ‘International Securities Identification Number.’ Internationally valid identification number for securities. Uniform system for the simplification of cross-border transactions.
Joint venture
A company, keeping its own accounts, that is established by two or more construction companies for the period of executing a construction contract. Profits and losses are entered in the income statements of the partner companies according to their percentage of participation and shown under sales revenues. The respective shares of joint-venture revenues are not shown in the financial statements of the partner companies.