2. Accounting principles
Basis of preparation
The unaudited consolidated interim financial statements of Galenica are based on the financial statements of the individual companies of Galenica as at 30 June 2021, prepared in accordance with uniform principles. Except for the amendments to International Financial Reporting Standards (IFRS) as detailed below, the consolidated interim financial statements have been prepared using the same accounting principles as the consolidated financial statements for the year ending 31 December 2020 and comply with IAS 34 – Interim Financial Reporting. As mentioned in notes 4 and 6 there have been changes to operating segment and net sales information. The consolidated interim financial statements should be read in conjunction with the consolidated financial statements for the year ending 31 December 2020 as they update previously reported information.
Galenica's consolidated interim financial statements are prepared in Swiss francs (CHF) and, unless otherwise indicated, figures are rounded to the nearest CHF 1,000.
Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. Totals are calculated using the underlying amount rather than the presented rounded number.
Foreign currencies are not of relevance for the consolidated interim financial statements.
Estimation uncertainty and assumptions
The preparation of the Group's consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense, and the disclosure of contingent liabilities as at the reporting date. Although these estimates and assumptions are made on the basis of all available information and with the greatest of care, the actual results may differ.
Seasonal influences on operations
Sales in the business sectors in which Galenica operates are usually not significantly influenced by seasonal or cyclical fluctuations during the financial year. The effect of the COVID-19 pandemic is further explained in note 3.
Income taxes
Current income taxes are based on an estimate of the expected income tax rate for the full year.
Scope of consolidation
The consolidated interim financial statements of Galenica comprise those of Galenica Ltd. and all its subsidiaries, including associate companies and joint ventures.
Details of changes in the scope of consolidation in the reporting period are included in note 4, Business combinations.
Amendments to IFRS
As at 1 January 2021 Galenica adopted the following new International Financial Reporting Standards:
- Amendments to IFRS 7, IFRS 9, IAS 39 and IFRS 16 – Interest Rate Benchmark Reform – phase 2 (1 January 2021)
This change has no or no material impact on the financial position, financial performance and cash flows of Galenica nor on disclosures in these consolidated interim financial statements. Galenica has not early adopted any other standard or interpretation that has been issued but is not yet effective.