Page 64 - Annual Report 2015 EN
P. 64
Financial Statements
2.1.2 Changes in accounting policies and disclosures
New standards, amendments to standards and interpretations: Certain new standards,
amendments to standards and interpretations have been issued that are mandatory for periods
beginning during the current financial year and subsequent years. The Company’s evaluation of the
effect of these new standards, amendments to standards and interpretations is as follows:
Standards and Interpretations effective for the current financial year
IFRIC 21 “Levies”
This interpretation sets out the accounting for an obligation to pay a levy imposed by government
that is not income tax. The interpretation clarifies that the obligating event that gives rise to a liability
to pay a levy (one of the criteria for the recognition of a liability according to IAS 37) is the activity
described in the relevant legislation that triggers the payment of the levy. The interpretation could
result in recognition of a liability later than today, particularly in connection with levies that are
triggered by circumstances on a specific date.
Annual Improvements to IFRSs 2013
The amendments set out below describe the key changes to three IFRSs following the publication of
the results of the IASB’s 2011-13 cycle of the annual improvements project.
IFRS 3 “Business combinations”
This amendment clarifies that IFRS 3 does not apply to the accounting for the formation of any joint
arrangement under IFRS 11 in the financial statements of the joint arrangement itself.
IFRS 13 “Fair value measurement”
The amendment clarifies that the portfolio exception in IFRS 13 applies to all contracts (including
non-financial contracts) within the scope of IAS 39/IFRS 9.
IAS 40 “Investment property”
The standard is amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive.
Standards and Interpretations effective for subsequent periods
A number of new standards and amendments to standards and interpretations are effective for
annual periods beginning after 1 January 2015, and have not been applied in preparing these financial
statements. The new standards that may have an effect are set out below. There are no other IFRSs or
IFRIC interpretations that are not yet effective that would be expected to have a material impact on
the Company.
IFRS 9 “Financial Instruments” and subsequent amendments to IFRS 9 and IFRS 7
(effective for annual periods beginning on or after 1 January 2018)
IFRS 9 replaces the guidance in IAS 39 which deals with the classification and measurement of
financial assets and financial liabilities and it also includes an expected credit losses model that
replaces the incurred loss impairment model used today. IFRS 9 Hedge Accounting establishes a more
principles-based approach to hedge accounting and addresses inconsistencies and weaknesses in the
current model in IAS 39. The Company is going to investigate the impact of IFRS 9 on its financial
statements. The Company cannot currently early adopt IFRS 9 as it has not yet been endorsed by the
EU.
IFRS 15 “Revenue from Contracts with Customers”
(effective for annual periods beginning on or after 1 January 2018)
IFRS 15 has been issued in May 2014. The objective of the standard is to provide a single,
comprehensive revenue recognition model for all contracts with customers to improve comparability
within industries, across industries, and across capital markets. It contains principles that an entity
will apply to determine the measurement of revenue and timing of when it is recognized. The
underlying principle is that an entity will recognize revenue to depict the transfer of goods or services
to customers at an amount that the entity expects to be entitled to in exchange for those goods or
services. The Company is going to investigate the impact of IFRS 15 on its financial statements. The
standard has not yet been endorsed by the EU.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
21 of 56
2.1.2 Changes in accounting policies and disclosures
New standards, amendments to standards and interpretations: Certain new standards,
amendments to standards and interpretations have been issued that are mandatory for periods
beginning during the current financial year and subsequent years. The Company’s evaluation of the
effect of these new standards, amendments to standards and interpretations is as follows:
Standards and Interpretations effective for the current financial year
IFRIC 21 “Levies”
This interpretation sets out the accounting for an obligation to pay a levy imposed by government
that is not income tax. The interpretation clarifies that the obligating event that gives rise to a liability
to pay a levy (one of the criteria for the recognition of a liability according to IAS 37) is the activity
described in the relevant legislation that triggers the payment of the levy. The interpretation could
result in recognition of a liability later than today, particularly in connection with levies that are
triggered by circumstances on a specific date.
Annual Improvements to IFRSs 2013
The amendments set out below describe the key changes to three IFRSs following the publication of
the results of the IASB’s 2011-13 cycle of the annual improvements project.
IFRS 3 “Business combinations”
This amendment clarifies that IFRS 3 does not apply to the accounting for the formation of any joint
arrangement under IFRS 11 in the financial statements of the joint arrangement itself.
IFRS 13 “Fair value measurement”
The amendment clarifies that the portfolio exception in IFRS 13 applies to all contracts (including
non-financial contracts) within the scope of IAS 39/IFRS 9.
IAS 40 “Investment property”
The standard is amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive.
Standards and Interpretations effective for subsequent periods
A number of new standards and amendments to standards and interpretations are effective for
annual periods beginning after 1 January 2015, and have not been applied in preparing these financial
statements. The new standards that may have an effect are set out below. There are no other IFRSs or
IFRIC interpretations that are not yet effective that would be expected to have a material impact on
the Company.
IFRS 9 “Financial Instruments” and subsequent amendments to IFRS 9 and IFRS 7
(effective for annual periods beginning on or after 1 January 2018)
IFRS 9 replaces the guidance in IAS 39 which deals with the classification and measurement of
financial assets and financial liabilities and it also includes an expected credit losses model that
replaces the incurred loss impairment model used today. IFRS 9 Hedge Accounting establishes a more
principles-based approach to hedge accounting and addresses inconsistencies and weaknesses in the
current model in IAS 39. The Company is going to investigate the impact of IFRS 9 on its financial
statements. The Company cannot currently early adopt IFRS 9 as it has not yet been endorsed by the
EU.
IFRS 15 “Revenue from Contracts with Customers”
(effective for annual periods beginning on or after 1 January 2018)
IFRS 15 has been issued in May 2014. The objective of the standard is to provide a single,
comprehensive revenue recognition model for all contracts with customers to improve comparability
within industries, across industries, and across capital markets. It contains principles that an entity
will apply to determine the measurement of revenue and timing of when it is recognized. The
underlying principle is that an entity will recognize revenue to depict the transfer of goods or services
to customers at an amount that the entity expects to be entitled to in exchange for those goods or
services. The Company is going to investigate the impact of IFRS 15 on its financial statements. The
standard has not yet been endorsed by the EU.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
21 of 56
