CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
136
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
B.4
ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS NOT YET
APPLICABLE AND NOT ADOPTED EARLY BY THE GROUP
On 12 November 2009, the IASB issued the first part of a new
accounting standard
IFRS 9 – Financial Instruments
, which
will supersede
IAS 39 - Financial Instruments: Recognition
and Measurement
. This initial document addresses the
classification of financial instruments and forms part of
a three-phase project, that will address the impairment
methodology for financial assets and the application of hedge
accounting respectively. This new standard, whose purpose
is to simplify and reduce the complexity of accounting for
financial instruments, classifies financial instruments in
three categories that the reporting entity defines according to
its business model, and to the contractual characteristics and
related cash flows of the instruments in question.
On 16 December 2011, the IASB postponed the effective date
of IFRS 9 from 1 January 2013 to 1 January 2015, although
earlier application is still permitted.
On 12 May 2011, the IASB issued IFRS 10, IFRS 11 and IFRS 12
and amendments to IAS 27 and IAS 28.
The principal changes are as follows:
IFRS 10 - Consolidated Financial Statements
This standard supersedes
SIC 12 - Consolidation: Special
Purpose Entities
and parts of
IAS 27 - Consolidated and
Separate Financial Statements
. The objective
of the new standard is to define a single control model,
which is applicable to all companies, including special
purpose entities.
The standard provides guidance on defining the new
concept of control, which is more detailed than in the past,
in order to assist in the determination of control where this
is difficult to assess.
IAS 27 - Separate Financial Statements
IAS 27 - Consolidated and Separate Financial Statements
has been revised following publication of
IFRS 10 -
Consolidated Financial Statements
. The new document,
from which all references to consolidation have been
removed, prescribes the accounting treatment for
investments when an entity prepares separate financial
statements.
IFRS 11 - Joint Arrangements
This document supersedes
IAS 31 - Interests in Joint
Ventures
and
SIC 13 - Jointly Controlled Entities: Non-
Monetary Contributions by Venturers
and establishes
principles for identifying a joint arrangement on the basis
of the rights and obligations arising from the arrangement,
rather than its legal form. The accounting treatment differs
according to whether the arrangement is classified as a
joint operation or a joint venture. In addition, the existing
policy choice of proportionate consolidation for joint
ventures has been eliminated.
IFRS 12 - Disclosure of Interests in Other Entities
This document refers to the disclosures concerning
interests in other entities, including subsidiaries, associates
and joint ventures.
The objective is to disclose information that enables
users of financial statements to evaluate the nature of
risks associated with interests in strategic investments
(consolidated and otherwise) intended to be held over the
medium to long term.
IFRSs 10, 11 and 12 and IAS 27 were published in the Official
Journal of the European Union on 29 December 2012 and
apply at the latest from the commencement date of the first
financial year starting on or after 1 January 2014.
