Page 81 - EVRY Annual Report 2012

Annual Accounts Group 81
IFRS 12 Disclosure of Involvement with Other Entities
IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as well
as all of the disclosures that were previously included in IAS 31 and IAS 28 Investment in Associates. These disclosures
relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number of new
disclosures are also required. One of the most significant changes introduced by IFRS 12 is that an entity is now required
to disclose the judgements made to determine whether it controls another entity. The new disclosures will assist the
users of the financial statements to make their own assessment of the financial impact in cases were management were
to reach a different conclusion regarding consolidation — by providing more information about unconsolidated entities.
This standard becomes effective for annual periods beginning on or after 1 January 2014. The Group expects to apply IFRS
12 as of 1 January 2014.
IFRS 13 Fair Value Measurement
IFRS 13 was issued for a number of reasons; the main reason being to reduce complexity and improve consistency in
application whenmeasuring fair value. Many IFRS’s require or permit entities to measure or disclose the fair value of
assets, liabilities, or equity instruments, but prior to the issuance of IFRS 13, the guidance on how to measure fair value
was limited and, in some cases, the guidance was conflicting. IFRS 13 consolidates and clarifies the guidance on how to
measure fair value. This standard becomes effective for annual periods beginning on or after 1 January 2013. The Group
expects to apply IFRS 13 as of 1 January 2013.
IAS 1 Amendment: Presentation of Items of Other Comprehensive Income
The amendments to IAS 1 require companies preparing financial statements in accordance with IFRS to group together
items within OCI that may be reclassified to the profit or loss section of the income statement. The amendment becomes
effective for annual periods beginning on or after 1 July 2012. The Group expects to apply the amended IAS 1 as of 1
January 2013.
IAS 12 Amendment: Deferred tax- Recovery of underlying assets
The amendments intend to provide a practical solution to a problem relating to investment properties that arises in
certain jurisdictions. As a result of the amendments deferred tax on investment property measured at fair value is
required to be determined using the rebuttable presumption that the carrying amount of the underlying asset will be
recovered through sale (rather than use). The presumption is rebutted if the investment property is depreciable and it is
held within a business model whose objective is to consume substantially all of the economic benefits in the investment
property over time, rather than through use. The amendments incorporate SIC 21 Income Taxes – Recovery of Revalued
Non-Depreciable Assets into IAS 12. As a result IAS 12 will require that deferred tax arising from a non-depreciable asset
measured using the revaluationmodel in IAS 16 Property, plant and equipment will always be determined on a sale basis.
The amended IAS 12 is effective for annual periods beginning on or after 1 January 2013. The Group expects to implement
the amended IAS 12 as of 1 January 2012.
IAS 19 Amendment: Employee Benefits
The amendments to IAS 19 Employee Benefits, proposes major changes to the accounting for employee benefits, includ-
ing the removal of the option for deferred recognition of changes in pension plan assets and liabilities (known as the
“corridor approach”). The result is greater balance sheet volatility for those entities currently applying the corridor
approach. In addition, these amendments will limit the changes in the net pension asset (liability) recognised in profit
or loss to net interest income (expense) and service costs. Expected returns on plan assets will be replaced by a credit to
income based on the corporate bond yield rate. The amended standard becomes effective for annual periods beginning
on or after 1 January 2013. The Group expects to implement the amended IAS 19 as of 1 January 2013.
IAS 27 Revised: Separate Financial Statements
As a consequence of the issuance of IFRS 10, 11 and 12, the IASB also issued amended and retitled IAS 27 Separate
Financial Statements. What remains in IAS 27 is limited to accounting for subsidiaries, jointly controlled entities, and
associates in separate financial statements. IAS 27 as revised becomes effective for annual periods beginning on or after 1
January 2014. The Group expects to implement the revised IAS 27 as of 1 January 2014.
IAS 28 Revised: Investments in Associates and Joint Ventures
As a consequence of the issuance of IFRS 10, 11 and 12, the IASB also issued amended and retitled IAS 28 Investments in
Associates and Joint Ventures. The standard has been renamed IAS 28 Investments in Associates and Joint Ventures, to
describe the application of the equity method to investments in joint ventures in addition to associates.IAS 28 as revised
becomes effective for annual periods beginning on or after 1 January 2014. The Group expects to implement the revised
IAS 28 as of 1 January 2014.
IAS 32 Amendment: Offsetting Financial Assets and Financial Liabilities
These amendments clarify the meaning of ”currently has a legally enforceable right to set-off” and also clarify the appli-
cation of the IAS 32 offsetting criteria to settlement systems (such as central clearing house systems) which apply gross
settlement mechanisms that are not simultaneously. The amended IAS 32 is effective for annual periods beginning on or
after 1 January 2014. The Group expects to implement the amended IAS 32 as of 1 January 2014.