Accounting standards, amendments and interpretations applicable after the end of year and not adopted in advance by the Group

Here follows a brief description of the supplementary IAS/IFRS documents that have already been issued by IASB, as well as the SIC/IFRIC interpretations issued by the Interpretation Committee and approved by the European Union at the date of approval of these financial statements, but whose adoption is required for the financial statements beginning after 1 January 2010.

Although each of the following standard and interpretation can be applied earlier, the Group decided not to make use of this option in drafting the financial statements as at 31 December 2010.

Amendment to IAS 32 – Classification of Rights Issues

The document was issued in October 2009 and approved on 23 December 2009. It came into force on 1 February 2010. This standard includes an amendment to the definition of financial liability for the classification of rights issues in foreign currency (and of some options and warrants) as equity instruments when those instruments are issued pro rata to all shareholders in the same class of a (non-derivative) equity instrument of an entity, or for the purchase of a fixed amount of the entity’s equity instruments for a fixed amount of currency.

Amendments to IFRIC 14 – Prepayments of a Minimum Funding Requirement

The document, that was issued in November 2009 and approved on 19 July 2010, came into force on 1 January 2011. This amendment provides guidelines in order to define the recoverable value of the net assets of a pension fund. This amendment allows an entity to recognise prepayments for a minimum funding contribution as an asset.

IFRIC 19 – Extinguishing financial liabilities with equity instruments

The document, that was issued in November 2009 and approved on 23 July 2010, came into force on 1 July 2010. According to this interpretation, if a debtor issues equity instruments to a creditor to extinguish a financial liability, those equity instruments are “consideration paid”. The equity instruments issued are measured at the fair value. If the fair value is not reliably determinable, the instruments are measured at the fair value of the liability extinguished. Any profit or loss is immediately recognised in the income statement.

Amendments to IFRS 1 and IFRS 7 – Limited exemption from comparative IFRS 7 Disclosure for first-time adopters

This document was issued in January 2010 and approved on 19 July 2010. It came into force on 1 January 2011.

IAS 24 (Revised in 2009) – Related party disclosures

The document, that was issued in November 2009 and approved on 19 July 2010, came into force on 1 January 2011.

This standard includes an amendment to the definition of related party in order to simplify it and, in particular, to ensure symmetry in the identification of related parties.

Improvements to IFRS (May 2010) – Related party disclosures

In May 2010, IASB issued improvements to IFRS, with a set of amendments to the standards. These amendments have not been implemented, since they will become effective for financial years beginning on 1 July 2010 or 1 January 2011. It is expected that the following amendments may have an effect on the Group:

  • IFRS 3 Business Combinations;
  • IFRS 7 Financial Instruments; additional disclosures;
  • IAS 1 Presentation of Financial Statements;
  • IAS 27 Consolidated and Separate Financial Statements;
  • IFRIC 13 Customer Loyalty Programmes.

At present, the Group is analysing the standards and interpretations given, as well as assessing whether their adoption will have a significant effect on the financial statements.