2.1 Basis of accounting
These semi-annual financial statements comprise the unaudited interim report for the reporting period ending on 30 June 2019. The consolidated financial statements have been prepared in conformity with the current Swiss GAAP FER 31 “Additional recommendations for listed companies”, as well as the provisions of the Listing Rules of SIX Swiss Exchange and the Swiss law on companies limited by shares (“company law”). The consolidated interim financial statements do not include all the data contained in the consolidated annual financial statements and they must therefore be read in conjunction with the consolidated annual financial statements prepared for the financial year ending 31 December 2018.
The consolidated financial statements include all domestic and foreign entities directly or indirectly controlled by Orell Füssli Holding Ltd, either by holding at least 50% of the voting rights or by otherwise exercising a significant influence on the business management and business policy. Joint ventures under joint management, but not controlled by one of the parties, are consolidated on a pro rata basis.
The preparation of the consolidated half-year financial statements requires management to estimate values and make assumptions affecting the disclosures of income, expenses, assets, liabilities and contingent liabilities as of the balance sheet date. If such estimates and assumptions, as made by management as of the balance sheet date to the best of its knowledge, differ from the actual conditions at a later date, the original estimates and assumptions are amended in the reporting period in which the conditions have changed.
The business in the Orell Füssli group is subject to significant seasonal and cyclical fluctuations. The seasonal fluctuations are mainly related to the Book Retailing Division’s Christmas business and the cyclical fluctuations are largely due to the product mix of the Security Printing Division.
The taxes on revenues are calculated on the basis of the best estimate of the average tax rate expected for the entire financial year.