CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
138
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
B.5
CONVERSION OF TRANSACTIONS IN CURRENCIES OTHER THAN THE FUNCTIONAL
CURRENCY
B.6
PROPERTY, PLANT AND EQUIPMENT
effective for financial years beginning on or after 1 January
2014 and are required to be applied retrospectively; they will
not entail any significant effects for the Group.
On 29 May 2013, the IASB issued an amendment to
IAS 36
- Impairment of Assets: Recoverable Amount Disclosures for
Non-Financial Assets
to clarify the disclosure requirements
concerning the recoverable amount of impaired assets,
when such amount is based on fair value less costs of
disposal. The amendment requires disclosures about the
recoverable amount of assets or cash generating units only
when impairment is recognised or a previous impairment is
reversed. In addition, the amendment clarifies the disclosure
requirements when an asset’s recoverable amount has been
determined on the basis of fair value less costs of disposal.
This amendment is due to come into effect for financial years
beginning on or after 1 January 2014 and will not entail any
significant effects for the Group.
On 27 June 2013, the IASB published an amendment to
IAS
39 Financial Instruments: Recognition and Measurement
– Novation of Derivatives and Continuation of Hedge
Accounting
which clarifies that it is permitted to continue
hedge accounting for a derivative designated as a hedging
Transactions in currencies other than the functional
currency of the company which undertakes the transaction
are translated using the exchange rate applicable at the
transaction date.
Prysmian Metals Limited (Great Britain), Prysmian Cables and
Systems S.A. (Switzerland), P.T. Prysmian Cables Indonesia
(Indonesia), Draka NK Cables (Asia) Pte Ltd (Singapore) and
Draka Philippines Inc. (Philippines) present their financial
Property, plant and equipment are stated at the cost of
acquisition or production, net of accumulated depreciation
and any impairment. Cost includes expenditures directly
incurred to prepare the assets for use, as well as any costs
for their dismantling and removal which will be incurred as
a consequence of contractual or legal obligations requiring
the asset to be restored to its original condition. Borrowing
instrument, where novation is required by legislation/
regulation, provided specific conditions are met. This
amendment is due to come into effect for financial years
beginning on or after 1 January 2014 and will not entail any
significant effects. The amendment will also appear in
IFRS 9 -
Financial Instruments.
On 21 November 2013, the IASB published an amendment
to
IAS 19 - Employee Contributions
with the aim of providing
more information about the accounting treatment of pension
plans which require plan participants to pay in contributions.
As at the present document date, the European Union had
not yet completed the endorsement process needed for the
application of this amendment.
On 12 December 2013, the IASB published the documents
Annual Improvements 2010-2012
and
Annual Improvements
2011-2013
as part of its programme of annual improvements
to its standards; most of the changes involve clarifications or
corrections to existing IFRSs or amendments resulting from
other changes previously made to the IFRSs. As at the present
document date, the European Union had not yet completed
the endorsement process needed for the application of these
amendments.
statements in a currency other than that of the country they
operate in, as their main transactions are not carried out in
their local currency but instead in their reporting currency.
Foreign currency exchange gains and losses arising on
completion of transactions or on the year-end translation of
assets and liabilities denominated in foreign currencies are
recognised in the income statement.
costs directly attributable to the acquisition, construction or
production of qualifying assets are capitalised and depreciated
over the useful life of the asset to which they refer.
Costs incurred subsequent to acquiring assets and the cost of
replacing certain parts of assets recognised in this category are
capitalised only if they increase the future economic benefits
of the asset to which they refer. All other costs are recognised
