In preparing the interim financial statements and establishing the comparative figures for the previous year basically the same consolidation principles and accounting and valuation methods as in the 2009 consolidated financial statements have been applied. A detailed description of these methods has been published in the Notes to the 2009 Annual Report which can be reviewed and downloaded from the Internet under www.solarworld.de

Estimations and assumptions

In connection with the preparation of the group interim financial statements management has to apply estimations and make assumptions. These affect the amounts recognized for assets, liabilities and contingent liabilities as of balance sheet date as well as the amounts recognized for revenues and expenses for the period then ended. Actual amounts may deviate from these estimations.

Income taxes

The income tax expense of the group interim financial statements is mainly calculated on the basis of the actual tax rates of the respective group companies considering the effects of material tax neutral revenues and expenses. As of June 30, 2010, for the US subsidiaries, deferred taxes on tax loss carry forwards have not been capitalized.