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FINANCIAL STATEMENTS
but provides guidance on when cost may be an appropriate estimate of fair value. The Company is currently investigating
the impact of IFRS 9 on its financial statements. The Company cannot currently early adopt IFRS 9 as it has not been
endorsed by the EU. Only once approved will the Company decide if IFRS 9 will be adopted prior to 1 January 2013.
• IFRS 1 (Amendment) “First-time adoption of International Financial Reporting Standards” (effective for annual periods
beginning on or after 1 January 2010)
This amendment provides additional clarifications for first-time adopters of IFRSs in respect of the use of deemed cost
for oil and gas assets, the determination of whether an arrangement contains a lease and the decommissioning
liabilities included in the cost of property, plant and equipment. This amendment will not impact the Company’s financial
statements since it has already adopted IFRSs. This amendment has not yet been endorsed by the EU.
• IFRS 2 (Amended) “Share-based Payment” (effective for annual periods beginning on or after 1 January 2010)
The purpose of the amendment is to clarify the scope of IFRS 2 and the accounting for group cash-settled share-based
payment transactions in the separate or individual financial statements of the entity receiving the goods or services,
when that entity has no obligation to settle the share-based payment transaction. This amendment is not expected
to impact the Company’s financial statements. This amendment has not yet been endorsed by the EU.
• IAS 24 (Amendment) “Related Party Disclosures” (effective for annual periods beginning on or after 1 January 2011).
This amendment attempts to relax disclosures of transactions between government-related entities and clarify related
party definition. More specifically, it removes the requirement for government-related entities to disclose details of all
transactions with the government and other government-related entities, clarifies and simplifies the definition of a
related party and requires the disclosure not only of the relationships, transactions and outstanding balances between
related parties, but of commitments as well in both the consolidated and the individual financial statements. The
Company will apply these changes from their effective date. This amendment has not yet been endorsed by the EU.
• IAS 32 (Amendment) “Financial Instruments: Presentation” (effective for annual periods beginning on or after 1
February 2010).
This amendment clarifies how certain rights issues should be classified. In particular, based on this amendment, rights,
options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency
are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the
same class of its own non-derivative equity instruments. This amendment is not expected to impact the Company’s
financial statements.
• IAS 39 (Amendment) “Financial Instruments: Recognition and Measurement” (effective for annual periods beginning
on or after 1 July 2009).
This amendment clarifies how the principles that determine whether a hedged risk or portion of cash flows is eligible
for designation should be applied in particular situations. This amendment is not applicable to the Company’s operations
as it does not apply hedge accounting in terms of IAS 39.
• IFRIC 17 – Distributions of non-cash assets to owners (effective for annual periods beginning on or after 1
July 2009).
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 22 OF 69
but provides guidance on when cost may be an appropriate estimate of fair value. The Company is currently investigating
the impact of IFRS 9 on its financial statements. The Company cannot currently early adopt IFRS 9 as it has not been
endorsed by the EU. Only once approved will the Company decide if IFRS 9 will be adopted prior to 1 January 2013.
• IFRS 1 (Amendment) “First-time adoption of International Financial Reporting Standards” (effective for annual periods
beginning on or after 1 January 2010)
This amendment provides additional clarifications for first-time adopters of IFRSs in respect of the use of deemed cost
for oil and gas assets, the determination of whether an arrangement contains a lease and the decommissioning
liabilities included in the cost of property, plant and equipment. This amendment will not impact the Company’s financial
statements since it has already adopted IFRSs. This amendment has not yet been endorsed by the EU.
• IFRS 2 (Amended) “Share-based Payment” (effective for annual periods beginning on or after 1 January 2010)
The purpose of the amendment is to clarify the scope of IFRS 2 and the accounting for group cash-settled share-based
payment transactions in the separate or individual financial statements of the entity receiving the goods or services,
when that entity has no obligation to settle the share-based payment transaction. This amendment is not expected
to impact the Company’s financial statements. This amendment has not yet been endorsed by the EU.
• IAS 24 (Amendment) “Related Party Disclosures” (effective for annual periods beginning on or after 1 January 2011).
This amendment attempts to relax disclosures of transactions between government-related entities and clarify related
party definition. More specifically, it removes the requirement for government-related entities to disclose details of all
transactions with the government and other government-related entities, clarifies and simplifies the definition of a
related party and requires the disclosure not only of the relationships, transactions and outstanding balances between
related parties, but of commitments as well in both the consolidated and the individual financial statements. The
Company will apply these changes from their effective date. This amendment has not yet been endorsed by the EU.
• IAS 32 (Amendment) “Financial Instruments: Presentation” (effective for annual periods beginning on or after 1
February 2010).
This amendment clarifies how certain rights issues should be classified. In particular, based on this amendment, rights,
options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency
are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the
same class of its own non-derivative equity instruments. This amendment is not expected to impact the Company’s
financial statements.
• IAS 39 (Amendment) “Financial Instruments: Recognition and Measurement” (effective for annual periods beginning
on or after 1 July 2009).
This amendment clarifies how the principles that determine whether a hedged risk or portion of cash flows is eligible
for designation should be applied in particular situations. This amendment is not applicable to the Company’s operations
as it does not apply hedge accounting in terms of IAS 39.
• IFRIC 17 – Distributions of non-cash assets to owners (effective for annual periods beginning on or after 1
July 2009).
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 22 OF 69
