Notes to the Financial Statements
Federation of Migros Cooperatives

Accounting standard

 

The annual financial statement of the Federation of Migros Cooperatives, Zurich, has been prepared in accordance with the regulations currently applicable under company law.
In 2011 the imparity principle was no longer applied for foreign currency transactions concluded by FMC for its partners (companies and foundations of the Migros Community).

 

Balance sheet information

 

 

Appropriation of net profit for the year

 

¹ The statutes state that at least 1/3% of the retail sales must be allocated to cultural, social and economic purposes. Every year it is determined whether too much or too little money has been spent on the Culture Percentage. Any unspent amounts must be spent within five years.

 

Risk management

 

The Federation of Migros Cooperatives Zurich operates a risk management system. The Board of Directors ensures that a risk assessment is carried out on time and in the appropriate manner. The Board is regularly informed by the Management about the risk situation of the company.

Based on a systematic risk analysis, the Board of Directors and the Chief Executives identify the main risks for the Federation of Migros Cooperatives and assess the likelihood of occurrence and financial effects. Measures implemented by the Board of Directors ensure that these risks are avoided, reduced or passed on.

Risks that have to be borne by the company are rigorously monitored. The results of the risk assessment are taken into consideration in the Board’s annual review of business strategy.

The last risk assessment was carried out by the Board of Directors on 8 March 2012 and established that risks were well covered by strategies, processes and systems.

 

Expenditure for cultural, social and economic policy purposes

 

 

Asset transfers in 2011

A shareholding of FMC was transferred to Migros Beteiligungen AG. No payment was made for this transfer.

Transfer from FMC to the following group companies

The value of Migros Beteiligungen AG in the FMC balance sheet was increased by the transfer value of Denner AG.
FMC acquired from Migros Beteiligungen AG its shareholding in Interio AG (CHF 74.0 million) against payment.

 

List of main equity Interests