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FINANCIAL STATEMENTS
are transferred) and others recognise revenue as the real estate is developed in accordance with IAS 11. The
interpretation clarifies which standard should be applied to particular. This interpretation is not relevant to the Company’s
operations.
• IFRIC 16 - Hedges of a net investment in a foreign operation
This interpretation applies to an entity that hedges the foreign currency risk arising from its net investments in foreign
operations and qualifies for hedge accounting in accordance with IAS 39. The interpretation provides guidance on how
an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument
and the hedged item. This interpretation is not relevant to the Company’s operations.
• IFRIC 18 – Transfers of assets from customers (Effective for transfers of assets received on or after 1 July 2009)
This interpretation clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an
item of property, plant and equipment that the entity must then use to provide the customer with an ongoing supply
of goods or services. In some cases, the entity receives cash from a customer which must be used only to acquire or
construct the item of property, plant and equipment. This interpretation is not relevant to the Company’s operations.
b) Standards, Amendments and Interpretations effective after year ended 31 December 2009
• IFRS 3 (Revised) “Business Combinations” and IAS 27 (Amended) “Consolidated and Separate Financial Statements”
(effective for annual periods beginning on or after 1 July 2009)
The revised IFRS 3 introduces a number of changes in the accounting for business combinations which will impact
the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported
results. Such changes include the expensing of acquisition-related costs and recognizing subsequent changes in fair value
of contingent consideration in the profit or loss. The amended IAS 27 requires that a change in ownership interest of a
subsidiary to be accounted for as an equity transaction. Furthermore the amended standard changes the accounting for
losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards
must be applied prospectively and will affect future acquisitions and transactions with minority interests. The Company
will apply these changes from their effective date.
• IFRS 9 “ Financial Instruments” (effective for annual periods beginning on or after 1 January 2013)
IFRS 9 is the first part of Phase 1 of the Board’s project to replace IAS 39. The IASB intends to expand IFRS 9 during
2010 to add new requirements for classifying and measuring financial liabilities, de-recognition of financial instruments,
impairment, and hedge accounting. IFRS 9 states that financial assets are initially measured at fair value plus, in the
case of a financial asset not at fair value through profit or loss, particular transaction costs. Subsequently financial
assets are measured at amortized cost or fair value and depend on the basis of the entity’s business model for managing
the financial assets and the contractual cash flow characteristics of the financial asset. IFRS 9 prohibits reclassifications
except in rare circumstances when the entity’s business model changes; in this case, the entity is required to reclassify
affected financial assets prospectively. IFRS 9 classification principles indicate that all equity investments should be
measured at fair value. However, management has an option to present in other comprehensive income unrealized and
realized fair value gains and losses on equity investments that are not held for trading. Such designation is available
on initial recognition on an instrument-by-instrument basis and is irrevocable. There is no subsequent recycling of fair
value gains and losses to profit or loss; however, dividends from such investments will continue to be recognized in
profit or loss. IFRS 9 removes the cost exemption for unquoted equities and derivatives on unquoted equities
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 21 OF 69
are transferred) and others recognise revenue as the real estate is developed in accordance with IAS 11. The
interpretation clarifies which standard should be applied to particular. This interpretation is not relevant to the Company’s
operations.
• IFRIC 16 - Hedges of a net investment in a foreign operation
This interpretation applies to an entity that hedges the foreign currency risk arising from its net investments in foreign
operations and qualifies for hedge accounting in accordance with IAS 39. The interpretation provides guidance on how
an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument
and the hedged item. This interpretation is not relevant to the Company’s operations.
• IFRIC 18 – Transfers of assets from customers (Effective for transfers of assets received on or after 1 July 2009)
This interpretation clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an
item of property, plant and equipment that the entity must then use to provide the customer with an ongoing supply
of goods or services. In some cases, the entity receives cash from a customer which must be used only to acquire or
construct the item of property, plant and equipment. This interpretation is not relevant to the Company’s operations.
b) Standards, Amendments and Interpretations effective after year ended 31 December 2009
• IFRS 3 (Revised) “Business Combinations” and IAS 27 (Amended) “Consolidated and Separate Financial Statements”
(effective for annual periods beginning on or after 1 July 2009)
The revised IFRS 3 introduces a number of changes in the accounting for business combinations which will impact
the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported
results. Such changes include the expensing of acquisition-related costs and recognizing subsequent changes in fair value
of contingent consideration in the profit or loss. The amended IAS 27 requires that a change in ownership interest of a
subsidiary to be accounted for as an equity transaction. Furthermore the amended standard changes the accounting for
losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards
must be applied prospectively and will affect future acquisitions and transactions with minority interests. The Company
will apply these changes from their effective date.
• IFRS 9 “ Financial Instruments” (effective for annual periods beginning on or after 1 January 2013)
IFRS 9 is the first part of Phase 1 of the Board’s project to replace IAS 39. The IASB intends to expand IFRS 9 during
2010 to add new requirements for classifying and measuring financial liabilities, de-recognition of financial instruments,
impairment, and hedge accounting. IFRS 9 states that financial assets are initially measured at fair value plus, in the
case of a financial asset not at fair value through profit or loss, particular transaction costs. Subsequently financial
assets are measured at amortized cost or fair value and depend on the basis of the entity’s business model for managing
the financial assets and the contractual cash flow characteristics of the financial asset. IFRS 9 prohibits reclassifications
except in rare circumstances when the entity’s business model changes; in this case, the entity is required to reclassify
affected financial assets prospectively. IFRS 9 classification principles indicate that all equity investments should be
measured at fair value. However, management has an option to present in other comprehensive income unrealized and
realized fair value gains and losses on equity investments that are not held for trading. Such designation is available
on initial recognition on an instrument-by-instrument basis and is irrevocable. There is no subsequent recycling of fair
value gains and losses to profit or loss; however, dividends from such investments will continue to be recognized in
profit or loss. IFRS 9 removes the cost exemption for unquoted equities and derivatives on unquoted equities
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 21 OF 69
