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a.2 Changes in the scope of consolidation in 2013
a.2.1 Additions
During the first six months of 2013, the Group sold Krasnapolsky H&R Onroerend Goed, B.V. and Expl. Mij. Grand Hotel Krasnapolsky, B.V., owner and
manager, respectively, of the NH Grand Hotel Krasnapolsky in Amsterdam. The gross amount of the sale was €157 million and the net amount €141
million, generating a capital gain of approximately €42 million.
The effect of removing the above-mentioned companies from the abridged consolidated balance sheet as at 31 December 2013 was:
€Thousand
2013 Carrying Amount
Tangible fixed assets (Note 8)
108,992
Deferred tax
(8,915)
Working capital
(853)
Total net assets sold
99,224
Sale price
(141,388)
Consolidated Profit
(42,164)
a.2.2 Other corporate transactions
In the first half of 2013, the Group acquired the 25% it did not already own of Group company Coperama Servicios a la Hostelería, S.L. for €3,511
thousand.
As a result of this transaction, there was an impact of €364 thousand on the Group’s reserves.
On 29 October 2013, it was agreed that the loans granted by Sotogrande S.A. to Donnafugata Resort, S.r.l. would be capitalised for a total amount of
€4.8 million. As a result of this increase, at 31 December 2013 the Group’s consolidated controlling interest in Donnafugata Resorts, S.r.l. was 98.99%.
As a result of the put option granted to the non-controlling shareholders of Donnafugata Resort, S.r.l., described in Note 18, the Group consolidates
the annual accounts of this company considering the equity interest represented by said option in relation to the share capital of this subsidiary.
3.- DISTRIBUTION OF PROFITS
At the Ordinary General Shareholders’ Meeting, the Parent Company’s directors will propose that the losses be applied to the “Previous years’
losses” account to be offset in future financial years. In accordance with Article 273.4 of the Consolidated Text of the Corporate Enterprises Act, the
directors will propose to allocate €418 thousand as an unavailable reserve, as provided by such article, at the Ordinary General Shareholders’ Meeting
and charge it to freely available reserves, because the Parent Company has not generated any profits this year.
4.- VALUATION STANDARDS
The main principles, accounting policies and valuation standards applied by the Group to draw up these consolidated financial statements, which
comply with IFRS in force on the date of the relevant financial statements, have been the following:
4.1 Tangible Fixed Assets
Tangible fixed assets are valued at their original cost. They are subsequently valued at their reduced cost resulting from cumulative depreciation and,
as appropriate, from any impairment losses they may have suffered.
Due to the transition to IFRS, the Group reappraised the value of some land to its market value on the basis of appraisals made by an independent
expert for a total amount of €217 million. The reappraised cost of such land was considered as a cost attributed to the transition to the IFRS. The
Group followed the criterion of not re-valuing any of its tangible fixed assets at subsequent year-ends.
Enlargement, modernisation and improvement costs entailing an increase in productivity, capacity or efficiency or a lengthening of the assets’ useful
life are recognised as increases in the cost of such assets. Conservation and maintenance costs are charged against the consolidated comprehensive
profit and loss statement for the year in which they are incurred.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
