Page 56 - 2board23full
P. 56
Financial Statements
IAS 32 (Amendment) “Financial Instruments: Presentation” (effective for annual periods beginning on or after 1
January 2014)
This amendment to the application guidance in IAS 32 clarifies some of the requirements for offsetting financial assets
and financial liabilities on the statement of financial position.
Group of standards on consolidation and joint arrangements (effective for annual periods beginning on or after 1
January 2014)
The IASB has published five new standards on consolidation and joint arrangements: IFRS 10, IFRS 11, IFRS 12, IAS 27
(amendment) and IAS 28 (amendment). These standards are effective for annual periods beginning on or after 1 January
2014. Earlier application is permitted only if the entire “package” of five standards is adopted at the same time. These
new standards are not relevant to the Company.
Amendments to standards that form part of the IASB’s 2011 annual improvements project
The amendments set out below describe the key changes to IFRSs following the publication in May 2012 of the results
of the IASB’s annual improvements project. These amendments are effective for annual periods beginning on or after 1
January 2013 and have not yet been endorsed by the EU.
IAS 1 “Presentation of financial statements”
The amendment clarifies the disclosure requirements for comparative information when an entity provides a third balance
sheet either (a) as required by IAS 8 “Accounting policies, changes in accounting estimates and errors” or (b) voluntarily.
IAS 16 “Property, plant and equipment”
The amendment clarifies that spare parts and servicing equipment are classified as property, plant and equipment rather
than inventory when they meet the definition of property, plant and equipment, i.e. when they are used for more than
one period.
IAS 32 “Financial instruments: Presentation”
The amendment clarifies that income tax related to distributions is recognised in the income statement and income tax
related to the costs of equity transactions is recognised in equity, in accordance with IAS 12.
IAS 34 “Interim financial reporting”
The amendment clarifies the disclosure requirements for segment assets and liabilities in interim financial statements, in
line with the requirements of IFRS 8 “Operating segments”.
2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (‘the functional currency’). The Company’s financial statements are
presented in EURO (€), which is the Company’s functional and presentation currency.
2.2.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 21 of 54
IAS 32 (Amendment) “Financial Instruments: Presentation” (effective for annual periods beginning on or after 1
January 2014)
This amendment to the application guidance in IAS 32 clarifies some of the requirements for offsetting financial assets
and financial liabilities on the statement of financial position.
Group of standards on consolidation and joint arrangements (effective for annual periods beginning on or after 1
January 2014)
The IASB has published five new standards on consolidation and joint arrangements: IFRS 10, IFRS 11, IFRS 12, IAS 27
(amendment) and IAS 28 (amendment). These standards are effective for annual periods beginning on or after 1 January
2014. Earlier application is permitted only if the entire “package” of five standards is adopted at the same time. These
new standards are not relevant to the Company.
Amendments to standards that form part of the IASB’s 2011 annual improvements project
The amendments set out below describe the key changes to IFRSs following the publication in May 2012 of the results
of the IASB’s annual improvements project. These amendments are effective for annual periods beginning on or after 1
January 2013 and have not yet been endorsed by the EU.
IAS 1 “Presentation of financial statements”
The amendment clarifies the disclosure requirements for comparative information when an entity provides a third balance
sheet either (a) as required by IAS 8 “Accounting policies, changes in accounting estimates and errors” or (b) voluntarily.
IAS 16 “Property, plant and equipment”
The amendment clarifies that spare parts and servicing equipment are classified as property, plant and equipment rather
than inventory when they meet the definition of property, plant and equipment, i.e. when they are used for more than
one period.
IAS 32 “Financial instruments: Presentation”
The amendment clarifies that income tax related to distributions is recognised in the income statement and income tax
related to the costs of equity transactions is recognised in equity, in accordance with IAS 12.
IAS 34 “Interim financial reporting”
The amendment clarifies the disclosure requirements for segment assets and liabilities in interim financial statements, in
line with the requirements of IFRS 8 “Operating segments”.
2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (‘the functional currency’). The Company’s financial statements are
presented in EURO (€), which is the Company’s functional and presentation currency.
2.2.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 21 of 54
