Company Accounts and Annexes I Notes to the Accounts
2013 Reports and Accounts · UniCredit S.p.A.
With specific reference to future cash flow projections used in the valuation of goodwill and other intangible assets, it should be noted that the parameters and information used are significantly influenced by the macro-economic market situation, which may change in unpredictably. For further information see Part B - Balance Sheet - Section 12 - Intangible assets.
With specific reference to valuation techniques, unobservable inputs used in the fair value measurement and sensitivities to changes in those inputs, please refer to section A.4. Information on fair value.
In October 2013 the ECB and National Competent Authorities responsible for conducting banking supervision announced a Comprehensive assessment of Significant Banks, in line with the provisions of the Regulation on the Single Supervisory Mechanism (SSM Regulation). Accordingly, UniCredit S.p.A will be subject to this Comprehensive Assessment, whose first phase in 2014 will be an Asset Quality Review.
Section 3 - Subsequent events
No significant events have occurred after the balance sheet date that would make it necessary to change any of the information given in the Accounts as at December 31, 2013.
Further details and information are represented in the Report on Operations.
Section 4 - Other matters
In 2013, the following principles and accounting interpretations came into force:
• Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income (EU Regulation 475/2012); • Amendments to IAS 12 - Deferred Tax: recovery of Underlying Assets (EU Regulation 1255/2012); • Amendments to IAS 19 - Employee Benefit (EU Regulation 475/2012);
• Amendment to IAS 32 - Offsetting Financial Assets and Financial Liabilities (EU Regulation 1256/2012);
• Amendments to IFRS1 - Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters (EU Regulation 1255/2012);
• Amendments to IFRS1 - First-time Adoption of International Financial Reporting Standards - Government Loans (EU Regulation 183/2013); • Amendments to IFRS 7 - Financial Instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities (EU Regulation 1256/2012); • IFRS 13 - Fair value measurement (EU Regulation 1255/2012);
• IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mine (EU Regulation 1255/2012); • Improvements to IFRSs (2009-2011) (EU Regulation 301/2013).
In 2012 and 2013 the European Commission endorsed the following accounting principles and interpretations that will be applicable for reporting periods beginning on or after January 1, 2014:
• IAS 27 revised - Separate Financial Statements (EU Regulation 1254/2012);
• IAS 28 revised - Investments in Associates and Joint Ventures (EU Regulation 1254/2012); • IFRS 10 - Consolidated Financial Statements (EU Regulation 1254/2012);
• IFRS 11 - Joint Arrangements (EU Regulation 1254/2012);
• IFRS 12 - Disclosure of interests in Other Entities (EU Regulation 1254/2012);
• Amendments to IAS 36 - Recoverable Amount Disclosures for Non-Financial Assets (EU Regulation 1374/2013); • Amendments to IAS 39 - Novation of Derivatives and Continuation of Hedge Accounting (EU Regulation 1375/2013); • Amendments to IFRS 10, IFRS 11 and IFRS 12 - Transition Guidance (EU Regulation 313/2013);
• Amendments to IFRS 10, IFRS 12 and IAS 27 - Investment Entities (EU Regulation 1174/2013).
As at December 31, 2013 the IASB issued the following standards, amendments, interpretations or revisions: • IFRS 9 - Financial Instruments (November 2009) and the following subsequent amendments:
• Amendments to IFRS 9 and IFRS7 - Mandatory Effective Date and Transition - December 2011; • Hedge Accounting and amendments to IFRS9, IFRS7 and IAS 39 - November 2013;
• IFRIC 21 - Levies (May 2013);
• Amendments to IAS 19 - Defined Benefit Plans: Employee Contributions (November 2013); • Annual Improvements to the IFRSs 2010 - 2012 (December 2013);
• Annual Improvements to the IFRSs 2011 - 2013 (December 2013).
However, the application of these principles by the Group is subject to their transposition by the European Commission.
In 2013, the Bank changed the parameters used to estimate impaired and performing loans which, pursuant to IAS 8 (paragraph 5), classifies as a “change in estimates”, as there was no change in the basis of measurement of the loans. Detailed information on the effects of the change has been provided pursuant to IAS 8 (paragraph 39) below in Part E - Risks and Hedging Policies - Section 1 - Credit Risk - A. Credit quality, at the bottom of table A.1.2 Breakdown of credit exposures by portfolio and credit quality, to which reference should be made for more information.
69 UniCredit S.p.A. · 2013 Reports and Accounts
Starting from January 1, 2013 the amendments to IAS 19 (‘IAS 19R’) came into effect, which, in particular, eliminate the option of using the “corridor approach” and require the commitment to be recognized on the basis of the present value of the defined benefit obligation, net of the fair value of the plan assets.
Therefore were recognized the net equity effects in the periods of 2012 of the application of the new IAS 19R (adopted from January 1, 2013) which requires the full actuarial valuation of the Italian Staff Severance Pay (TFR) and the defined benefits pension funds as offsetting entries against a specific valuation reserve.
The adoption of the new standard had a negative impact on shareholders’ equity at December 31, 2012 (restated) of €199 million, as a result of the recognition of the net actuarial losses (less the related tax items) under revaluation reserves.
The rules for the first-time adoption of the standard also required the restatement of the previous periods starting from January 1, 2012, with a negative impact on shareholders’ equity at January 1, 2012 (see Company Financial Statements - Financial Statements - the Statement of changes in Shareholder’s Equity at December 31, 2012) March 31, June 30, and September 30, 2012 ( cf. Directors’ Report on operations - Condensed Financial Accounts - Quarterly figures 2012) of €45 million.
The disclosure regarding the retroactive adoption of IAS 19R with reference to the effects at January 1, 2012 has not been reported in the financial statements because it was not significant in proportion to the amounts presented.
These Accounts are audited by Deloitte & Touche pursuant to Legislative Decree no. 39 of January 27, 2010 and the resolution passed by the Shareholders’ Meeting on May 11, 2012.
The Parent Company Accounts were approved by the Board of Directors meeting of March 11, 2014, which authorized their publication. also pursuant to IAS 10.
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Part A - Accounting Policies (Continued)
Company Accounts and Annexes I Notes to the Accounts
2013 Reports and Accounts · UniCredit S.p.A.