Standards applied for the fi rst time
IFRS 7
The International Accounting Standards Board (IASB) published IFRS 7 Financial Instruments: Disclosures in August 2005. This Standard covers the disclosures on the signifi cance of fi nancial instruments for the company’s net assets and results of operations as well as qualitative and quantitative disclosures on the type and extent of risks associated with fi nancial instruments. The Standard was applied by NA Group for the fi rst time in the fi scal year, and the corresponding prior-year disclosures were augmented.
Amendments to IAS 1
The IASB announced an amendment to IAS 1 in August 2005 in connection with the publication of IFRS 7. This requires information to be published in the fi nancial statements, which enables users to evaluate the entity’s objectives, policies and processes for managing capital. The amendment to IAS 1 and IFRS 7 have been applied for the fi rst time in the fi scal year.
Interpretations applied for the fi rst time
IFRIC 10 / IFRIC 11
The application of the interpretations IFRIC 10 Interim Financial Reporting and Impairment and IFRIC 11 IFRS 2 – Group and Treasury Share Transactions has had no signifi cant impact on the Company’s consolidated fi nancial statements.
Standards / Interpretations not adopted early
The IASB has issued the following Standards, Interpretations and amendments to the existing Standards, adoption of which is not yet compulsory, and which are also not being adopted early by NA Group:
IFRS 8 “Operating Segments”
In November 2006, the IASB published IFRS 8 Operating Segments to replace IAS 14 Segment Reporting. IFRS 8 requires entities to disclose fi nancial and descriptive information on their reportable segments. IFRS 8 shall be applied for the fi scal years commencing on or after 1 January 2009. The NA Group is not applying this Standard early. The fi rst application of the Standard will only result in amended disclosure obligations.
The following announcements have been made on accounting principles by the IASB which had not yet been adopted by the EU on the balance sheet date. The NA Group is also not yet applying them. The impacts on accounting policies and on the presentation of the consolidated fi nancial statements are still being investigated.
m a n a g e m e n t g r o u p m a n a g e m e n t r e p o r t consolidated financial statements f u r t h e r i n f o r m at i o n Notes to the fi nancial statements l Consolidation principles
l Changes in accounting policies on account of new standards and interpretations
Amendment to IAS 1 “Presentation of Financial Statements” – disclosures on capital
The IASB published IAS 1 Presentation of Financial Statements (revised) in September 2007. IAS 1 replaces IAS 1 Presentation of Financial Statements (revised in 2003) as amended in 2005. The objective of the revision is to improve the means of analysis and the comparability of fi nancial statements for their users. IAS 1 sets out the principles for the presentation and structure of fi nancial statements. The new Standard must be applied for annual periods beginning on after 1 January 2009; early application is permitted.
Amendment to IFRS 3 “Business Combinations” and IAS 27
“Consolidated and Separate Financial Statements in accordance with IFRS”
In January 2008, the IASB published the revised Standards IFRS 3 Business Combinations (IFRS 3 (2008)) and IAS 27 Consolidated and Separate Financial Statements in accordance with IFRS (IAS 27 (2008)). Under IFRS 3 (2008), the application of the acquisition method for business combinations has been revised. The main changes relate to minority interests, the measurement of acquisitions achieved in stages and the han- dling of contingent consideration and acquisition-related costs. In accordance with the new rules, minority interests are measured at fair value (full goodwill method) or at the fair value of the proportionate identifi able assets. For acquisitions achieved in stages, a revaluation through profi t or loss of the interests held at the time of obtaining control is foreseen. Gains or losses on the re-measurement of contingent purchase price considerations, which are recognised as liabilities at the acquisition date, must in future be recognised in profi t or loss. Acquisition-related costs will be recognised as expenses when they are incurred. The main amendments to IAS 27 (2008) concern the accounting for transactions, as a result of which an entity con- tinues to retain control, and transactions, which result in a loss of control. Transactions, which do not result in a loss of control, are recognised directly in equity as equity transactions. Remaining interests shall be measured at the fair value at the time of loss of control. The revised Standards shall be applied for annual periods beginning on or after 1 July 2009.
Amendments to IFRS 2 “Share-based Payment”
In January 2008 the IASB adopted IFRS 2 Share-based Payment, Vesting Conditions and Cancellations. The amendment states clearly that vesting conditions are only either service conditions or performance conditions. Other elements of a share-based payment are not vesting conditions. In addition, the amend- ment states that cancellations by parties other than the entity must be recognised in income in the same way as cancellations by the entity. The amendment to IFRS 2 is applicable for annual periods beginning on or after 1 January 2009.
Amendments to IAS 23 “Borrowing Costs”
In March 2007, the IASB published amendments to IAS 23 relating to the treatment of borrowing costs. The option previously available for the capitalisation of borrowing costs incurred in relation to the acquisition or production of qualifi ed assets must in future be applied. The NA Group has to date waived the capitalisation of borrowing costs. The Standard is applicable for all annual periods beginning on or after 1 January 2009.
In addition, the following Interpretations have been published, which were adopted by the EU as of the balance sheet date and were also not applied by NA Group in the past fi scal year:
IFRIC 12 Service Concession Arrangements (November 2006) IFRIC 13 Customer Loyalty Programmes (June 2007)
IFRIC 14 IAS 19 - The Limit on a Defi ned Benefi t Asset, Minimum Funding (July 2007) IFRIC 15 Agreements for the Construction of Real Estate (July 2008)
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (July 2008)
The fi rst-time application of these Interpretations is not expected to result in any signifi cant changes.