2 Basis of preparation and changes to accounting policies
2.1 Basis of preparation
These 2023 condensed consolidated interim accounts as at June 30, 2023 have been prepared in accordance with IAS 34 of the International Financial Reporting Standards (IFRS), as endorsed by the EU.
The accounting policies, presentation and methods of computation are consistent with those applied in the preparation of FMO’s condensed consolidated interim financial statements for the year ended December 31, 2022. The consolidated interim accounts do not include all the information and disclosures that are required for the consolidated annual accounts and should be read in conjunction with FMO’s consolidated annual accounts as at December 31, 2022.
2.2 Group accounting and consolidation
The activities of Asia Participations B.V. and Equis DFI Feeder L.P. consist of providing equity capital to companies in developing countries. FMO Investment Management B.V. carries out portfolio management activities for third party investment funds, which are invested in FMO’s transactions in emerging and developing markets. FMO has a 63% equity stake in Equis DFI Feeder L.P. and all other subsidiaries are 100% owned by FMO.
The company accounts of FMO and the company accounts of the subsidiaries Asia Participations B.V., FMO Investment Management B.V., Equis DFI Feeder L.P. and FMO Representative Office LAC Limitada are consolidated in these interim accounts. The consolidation of this entity does not have a material impact on FMO's balance sheet or FMO's current business activities.
2.3 Foreign currency translation
FMO uses the euro as the unit for presenting its annual accounts and interim reports. All amounts are denominated in thousands of euros unless stated otherwise. FMO uses the euro as the functional currency.
2.4 Adoption of new standards, interpretations and amendments
There are no new standards, interpretations or amendments adopted by the EU that have an impact on FMO.
2.5 Standards issued but not yet effective
FMO has assessed the amendments and new standards and does not expect them to have a significant impact on the interim financial statements.
2.6 Estimates and assumptions
In preparing the condensed consolidated interim accounts in conformity with IAS 34, management is required to make estimates and assumptions affected reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. The same methods for making estimates and assumptions have been followed in the condensed consolidated interim accounts as were applied in the preparation of FMO’s consolidated annual accounts as at December 31, 2022.
2.7 Segment Reporting
The operating segments are reported in a manner consistent with internal reporting to FMO’s chief operating decision maker. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Management Board. FMO presents its operating segments based on servicing unit. Reference is made to the Segment Information note for more details on operating segments.