IMMOFINANZ prepares its financial statements in accordance with International Financial Reporting Standards, which are based on Regulation (EU) Nr. 1606/2002 of the European Parliament and the European Union for the application of international accounting standards (IAS Regulation 1606/2002). These standards were adopted into European Union law through a special procedure in 2002. The accounting and valuation methods used by IMMOFINANZ are described under accounting and valuation principles of the notes. The following accounting and valuation methods can have a significant impact on earnings and, for this reason, are explained in detail below: