13
IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements, IFRS
12, Disclosure of Interests inOther Entities, IAS 27 (Revised), Separate Financial
Statements and IAS28 (Revised), Investments inAssociates and Joint Ventures
IFRS 10 modifies the current definition of control. The new definition of control sets out
the following three elements of control: power over the investee; exposure, or rights, to
variable returns from involvement with the investee; and the ability to use power over the
investee to affect the amount of the investor’s returns.
The Group is analysing how this new definition of control will affect the consolidated group
companies as a whole and it will foreseeably not have a significant impact on the
composition of the Group.
IFRS 11, Joint Arrangements supersedes IAS 31. The fundamental change introduced by
IFRS 11 with respect to the current standard is the elimination of the option of
proportionate consolidation for jointly controlled entities, which will begin to be accounted
for using the equitymethod.
This amendment will not have a material effect on the Group’s consolidated financial
statements.
IAS 27 and IAS 28 are revised in conjunction with the issue of the aforementioned new
IFRSs.
In the case of the Group, they will not have any impacts other than those discussed
above.
Lastly, IFRS 12 is a disclosure standard that groups together all the disclosure
requirements for interests in other entities (whether these be subsidiaries, associates,
joint arrangements or other interests) and includes new disclosure requirements.
Accordingly, its entry into force will foreseeably give rise to an increase in the disclosures
that the Group has been making, i.e., those currently required for interests in other
entities and other investment vehicles.
Amendments to IAS 32, Financial Instruments: Presentation - Offsetting
Financial Assets and Financial Liabilities
The amendments introduce certain additional clarifications to the application guidance on
the requirements of the standard for being able to offset a financial asset and a financial
liability in the balance sheet, which are provided in paragraph 42 of IAS 32.
IAS 32 already indicates that a financial asset and a financial liability may only be offset
when an entity currently has a legally enforceable right to set off the recognised amounts.
The amended application guidance states, inter alia, that in order to meet this criterion,
the right of set-off must not be contingent on a future event, and must be legally
enforceable in the normal course of business, in the event of default and in the event of
insolvency or bankruptcy of the entity and all of the counterparties. It also clarifies in
which cases a gross settlement system could be considered equivalent to net settlement.
The adoption of this standard will foreseeably not have a material impact on the
consolidated financial statements.
