Page 71 - Annual_Report_2016
P. 71
aia.gr Annual Report 2016
IAS 7 (Amendments) “Disclosure initiative”
(effective for annual periods beginning on or after 1 January 2017)
These amendments require entities to provide disclosures that enable users of financial statements
to evaluate changes in liabilities arising from financing activities. The amendments have not yet been
endorsed by the EU.
IFRS 2 (Amendments) “Classification and measurement of Shared-based Payment transactions”
(effective for annual periods beginning on or after 1 January 2018)
The amendment clarifies the measurement basis for cash-settled, share-based payments and the
accounting for modifications that change an award from cash-settled to equity-settled. It also introduces
an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-
settled, where an employer is obliged to withhold an amount for the employee’s tax obligation associated
with a share-based payment and pay that amount to the tax authority. The amendments have not yet
been endorsed by the EU.
IFRS 4 (Amendments) “Applying IFRS 9 Financial instruments with IFRS 4 Insurance contracts”
(effective for annual periods beginning on or after 1 January 2018)
The amendments introduce two approaches. The amended standard will: a) give all companies that issue
insurance contracts the option to recognise in other comprehensive income, rather than profit or loss, the
volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued; and b)
give companies whose activities are predominantly connected with insurance an optional temporary exemption
from applying IFRS 9 until 2021. The entities that defer the application of IFRS 9 will continue to apply the
existing financial instruments standard—IAS 39. The amendments have not yet been endorsed by the EU.
IAS 40 (Amendments) “Transfers of Investment Property”
(effective for annual periods beginning on or after 1 January 2018)
The amendments clarified that to transfer to, or from, investment properties there must be a change in
use. To conclude if a property has changed use there should be an assessment of whether the property
meets the definition and the change must be supported by evidence. The amendments have not yet been
endorsed by the EU.
IFRIC 22 “Foreign currency transactions and advance consideration”
(effective for annual periods beginning on or after 1 January 2018)
The interpretation provides guidance on how to determine the date of the transaction when applying the
standard on foreign currency transactions, IAS 21. The Interpretation applies where an entity either pays or
receives consideration in advance for foreign currency-denominated contracts. The interpretation has not
yet been endorsed by the EU.
Annual Improvements to IFRSs 2014 (2014 – 2016 Cycle) (effective for annual periods beginning on or
after 1 January 2017)
The amendments set out below describe the key changes to two IFRSs. The amendments have not yet been
endorsed by the EU.
IFRS 12 “Disclosures of Interests in Other Entities”
The amendment clarified that the disclosures requirement of IFRS 12 are applicable to interest in entities
classified as held for sale except for summarised financial information.
IAS 28 “Investments in associates and Joint ventures”
The amendments clarified that when venture capital organisations, mutual funds, unit trusts and similar entities
use the election to measure their investments in associates or joint ventures at fair value through profit or loss
(FVTPL), this election should be made separately for each associate or joint venture at initial recognition.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
24 of 57
IAS 7 (Amendments) “Disclosure initiative”
(effective for annual periods beginning on or after 1 January 2017)
These amendments require entities to provide disclosures that enable users of financial statements
to evaluate changes in liabilities arising from financing activities. The amendments have not yet been
endorsed by the EU.
IFRS 2 (Amendments) “Classification and measurement of Shared-based Payment transactions”
(effective for annual periods beginning on or after 1 January 2018)
The amendment clarifies the measurement basis for cash-settled, share-based payments and the
accounting for modifications that change an award from cash-settled to equity-settled. It also introduces
an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-
settled, where an employer is obliged to withhold an amount for the employee’s tax obligation associated
with a share-based payment and pay that amount to the tax authority. The amendments have not yet
been endorsed by the EU.
IFRS 4 (Amendments) “Applying IFRS 9 Financial instruments with IFRS 4 Insurance contracts”
(effective for annual periods beginning on or after 1 January 2018)
The amendments introduce two approaches. The amended standard will: a) give all companies that issue
insurance contracts the option to recognise in other comprehensive income, rather than profit or loss, the
volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued; and b)
give companies whose activities are predominantly connected with insurance an optional temporary exemption
from applying IFRS 9 until 2021. The entities that defer the application of IFRS 9 will continue to apply the
existing financial instruments standard—IAS 39. The amendments have not yet been endorsed by the EU.
IAS 40 (Amendments) “Transfers of Investment Property”
(effective for annual periods beginning on or after 1 January 2018)
The amendments clarified that to transfer to, or from, investment properties there must be a change in
use. To conclude if a property has changed use there should be an assessment of whether the property
meets the definition and the change must be supported by evidence. The amendments have not yet been
endorsed by the EU.
IFRIC 22 “Foreign currency transactions and advance consideration”
(effective for annual periods beginning on or after 1 January 2018)
The interpretation provides guidance on how to determine the date of the transaction when applying the
standard on foreign currency transactions, IAS 21. The Interpretation applies where an entity either pays or
receives consideration in advance for foreign currency-denominated contracts. The interpretation has not
yet been endorsed by the EU.
Annual Improvements to IFRSs 2014 (2014 – 2016 Cycle) (effective for annual periods beginning on or
after 1 January 2017)
The amendments set out below describe the key changes to two IFRSs. The amendments have not yet been
endorsed by the EU.
IFRS 12 “Disclosures of Interests in Other Entities”
The amendment clarified that the disclosures requirement of IFRS 12 are applicable to interest in entities
classified as held for sale except for summarised financial information.
IAS 28 “Investments in associates and Joint ventures”
The amendments clarified that when venture capital organisations, mutual funds, unit trusts and similar entities
use the election to measure their investments in associates or joint ventures at fair value through profit or loss
(FVTPL), this election should be made separately for each associate or joint venture at initial recognition.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
24 of 57
