3.2 Accounting standards and interpretations endorsed and in force from January 1, 2011

Amendments to IAS 32 – Financial Instruments: Presentation – classification of rights isues

The amendments address the issue of options, warrants, and similar rights that are denominated in a currency other than the issuer’s functional currency. Previously, these rights issues were recognised as derivative financial liabilities. Now, if certain conditions are satisfied, these rights issues may be classified as equity instruments, regardless of the currency in which the exercise price is denominated.

Application of this interpretation has no impact on the Group financial statements.

Amendments to revised IFRS 1 – First-time Adoption of International Financial Reporting Standards – limited exemptions from the comparative disclosure required under IFRS 7 upon first-time adoption

This amendment grants an exemption from having to provide the additional comparative disclosure data required under IFRS 7 regarding the measurement of fair value and liquidity risk upon first-time adoption of IFRSs.

There is no impact on the consolidated financial statements.

Revised IAS 24 – Related Party Disclosures

The revised IAS 24 simplifies the disclosures requirements regarding related parties when statecontrolled entities are involved and provides a new, simplified and more coherent definition of related parties.

There is no significant impact on the disclosures provided by the Group following application of this standard.

Amendments to IFRIC 14 – Prepayments of a Minimum Funding Requirement

The amendments to IFRIC 14 govern the rare case where an entity that is subject to minimum funding requirements for defined benefit plans makes prepayments to guarantee compliance with these requirements. The benefits resulting from prepayments may be recognised as assets.

These amendments are not applicable to the Group.

IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments

This interpretation provides guidelines on how to account for the extinguishing of a financial liability through the issue of equity instruments (debt for equity swap), i.e. when an entity renegotiates the terms of a debt with its lender, which agrees to receive shares in the entity or other equity instruments to settle the debt in full or in part.

This interpretation clarifies that:

  • the shares issued are part of the consideration paid to extinguish the financial liability;
  • the shares issued are carried at fair value. If the fair value cannot be determined reliably, the equity instruments issued must be measured in such a way as to reflect the fair value of the liability that is extinguished;
  • the difference between the carrying amount of the financial liability being extinguished and
  • the initial value of the shares issued must be recognised by the entity in the income statement for the period.

Application of this interpretation has no impact on the consolidated financial statements.

“Improvements” to IFRSs (isued by the IASB in May 2010)

As part of the project begun in 2008, the IASB has issued a series of amendments to seven current standards. The following table summarises the standards and issues addressed by these amendments:

IFRS 3 – Business Combinations
  • Transitory provisions regarding contingent consideration for business combinations completed before 01/01/2010
  • Measurement of non-controlling interests at the acquisition date
  • Impact of business combinations on accounting of share-based payments
IFRS 7 – Financial Instruments: Disclosures Clarification in regard to the disclosures to be published for each class of financial assets
IAS 1 – Presentation of Financial Statements Clarifications regarding the schedule of changes in equity
IAS 27 – Consolidated and Separate Financial Statements Transitory provisions for amendments to certain standards resulting from the changes introduced by IAS 27 (2008):
  • IAS 21 – Effects of changes in foreign exchange rates: accounting of translation differences accumulated in equity following total or partial sale of an investment in a foreign entity
  • Investments in Associates / IAS 31 – Interests in Joint Ventures: accounting treatment if significant influence or joint control are lost
IAS 34 – Interim Financial Reporting Disclosures required by IFRS 7 – Financial Instruments: Disclosures and their applicability to interim financial statements
IFRIC 13 – Customer Loyalty Programes Fair value of award credits

Application of these amendments has no impact on the consolidated financial statements.