Newly applicable standards/interpretations
and changes in standards
As at 1 January 2013, the Group for the first time applied the following changed or new IFRSs:
International Financial Reporting Standards – IFRS 13 “Fair Value Measurement” was published in May 2011, and its application is mandatory for financial years beginning on or after 1 January 2013. It standardises the definition of fair value and sets down a framework of applicable methods for measuring fair value. Fair value is defined as the price that would be received to sell an asset, the measurement of this price being based as far as possible on observable market parameters. In addition, an entity is required to provide comprehensive explanatory and qualitative disclosures, which are to describe, in particular, the quality of the fair-value measurement. The scope of IFRS 13 is more extensive and comprises non-financial items alongside financial items. The amendments will essentially be applied if another standard calls for fair-value measurement or if disclosures concerning fair value are prescribed. Initial application, implemented prospectively by the Group (without comparative information for previous years) in agreement with the transition guidelines, resulted in no significant change in the valuation of the Group’s assets and liabilities. For information regarding the new disclosures or adjustments in the classification for quoted fixed-income securities, please refer to the section “Non-current assets held for sale and disposal groups”, item 3 “Investment Property”, item 12 “Fair-value hierarchy” and item 16 “Other assets” in the Notes.
In June 2011 the IASB published an amendment to IAS 1 “Presentation of Financial Statements” designed to improve how items of other comprehensive income (OCI) should be presented. It is applicable retrospectively to financial years beginning on or after 1 July 2012. IAS 1 stipulates that items under “Other comprehensive income” must be disclosed separately according to whether they can be carried in the consolidated statement of income through profit and loss (reclassifiable) or must remain under “Other comprehensive income” (not reclassifiable in the consolidated statement of income). Sub-totals must be calculated as required in both cases. According to this logic, taxes on income attributable to items under “Other comprehensive income” are also to be allocated. Thus these amendments relate exclusively to the presentation of “Other comprehensive income”. The Group changed the presentation of items under “Other comprehensive income” in its consolidated statement of comprehensive income based on the amendments to IAS 1. Comparative information was adjusted accordingly.
Amended IAS 19 “Employee Benefits” (revised in 2011), which was ratified by the EU in 2012, is mandatory for financial years beginning on or after 1 January 2013. Pursuant to the transition rules, the standard is to be applied retroactively, apart from several exceptions. The Group thoroughly explains the impact of initial application in the section “Accounting policies”, subsection “Changes in accounting policies and accounting errors” (letter b), which mainly relates to a higher provision and a charge under “Other comprehensive income”. The new disclosures in the Notes, such as explanations of defined benefit plan characteristics, including the related risks and sensitivity analyses for actuarial assumptions, have been included in item 23 “Provisions for pensions and other post-employment benefits”.
In December 2011, the IASB published amendments to IFRS 7 “Financial Instruments: Disclosures” dealing with the presentation of financial assets and liabilities. They mandate comprehensive disclosures regarding certain netting arrangements. The amended standard is applicable retrospectively to financial years beginning on or after 1 January 2013. The changes require disclosure of all recognised financial instruments that are subject to enforceable master netting arrangements or similar agreements, irrespective of whether they are set off in accordance with IAS 32. As at the balance sheet date, these consisted of derivatives transactions that are concluded on the basis of standardised master agreements and contain master netting arrangements. For the corresponding disclosures, cf. our remarks in item 13 “Derivative financial instruments and hedge accounting”.
The “Annual Improvements 2009 – 2011 Cycle”, a collection of amendments to IFRSs issued by the IASB on 17 May 2012, forms part of the annual improvement process of the standards issued by the IASB. It contains a multitude of minor amendments to IFRS. The amendments, which were approved by the EU in March 2013, are applicable to financial years beginning on or after 1 January 2013. The application of these amendments had no significant impact for the Group.
In May 2013 the IASB published “Recoverable Amount Disclosures for Non-Financial Assets” (Amendments to IAS 36 “Impairment of Assets”) and adjusted consequential amendments resulting from IFRS 13 that were broader than originally intended. This clarified that the disclosure of the recoverable amount is only required for assets and cash-generating units if impairment was recovered or reversed in the current period. Disclosure requirements were also introduced for valuation methods applied and the fair value hierarchy used to determine fair values for certain impaired assets. The amendments were ratified by the EU in December 2013 and application is mandatory for financial years beginning on or after 1 January 2014; earlier application is permitted. The Group implemented these amendments in the 2013 financial year in accordance with the transition guidelines.
IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine” must be applied for financial years beginning on or after 1 January 2013, but had no practical relevance for the Group.