Glossary

EBIT
Abbreviation for "earnings before interest and taxes."

EBITA
Abbreviation for "earnings before interest, taxes and goodwill amortization." In Bilfinger Berger’s accounting, EBITA is used as a performance measure for the profits from operating activities.

Equity consolidation
Minority holdings in companies of between 20% and 50 % are included in the consolidated financial statements as associated companies by means of equity-method consolidation. In the consolidated income statement, the pro-rated net profit of the associated companies – reduced by goodwill amortization if necessary – is shown under income from investments.

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
Abbreviation for "International Accounting Standards Board" based in London. An institution founded in 1973 for the formulation of International Accounting Standards (IAS).

IFRIC
Abbreviation for the London-based "International Financial Reporting Interpretations Committee." IFRIC determines the details of the interpretation of the IAS.

IFRS
Abbreviation for "International Financial Reporting Standards" based on Anglo-American accounting principles. Against a background of harmonization of international accounting, these standards are becoming increasingly important for German accounting. IFRS is based on the International Accounting Standards (IAS/IFRS), which set rules for accounting and valuation: for example, IAS 19 for the valuation of pension provisions.

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.