1201 44721 Ifrs vs Nl Gaap 2012_view PDF

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IFRSs and NL GAAPHighlighting the key differences

October 2012


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Contacts

IFRS Centre o Excellence, Rotterdam, The Netherlands

Ralph ter Hoeven

[email protected]

Deloittes www.iasplus.com website provides, without charge, comprehensive

inormation about international nancial reporting in general and IASB activities in

particular. Unique eatures include:

daily news about nancial reporting globally;

summaries o all Standards, Interpretations and proposals;

many IFRS-related publications available or download;

model IFRS nancial statements and disclosure checklists;

an electronic library o several hundred IFRS resources;

all Deloitte comment letters to the IASB;

links to nearly 200 IFRS-related websites;

e-learning modules or each IAS and IFRS;

a complete history o adoption o IFRSs around the world;

updates on developments in national accounting standards; and

comparisons between IFRSs and local GAAPs.

For IFRS and NL GAAP videocasts please visit:

www.deloitte.nl/IFRS-NLGAAP


3/363IFRSs and NL GAAP Highlighting the key dierences

Foreword

Welcome to the th edition o IFRSs and NL GAAP, A

pocket comparison. The objective o this publication

is to provide a summary o key dierences between

the requirements o IFRSs compared to NL GAAP. This

publication does not attempt to capture all o the

dierences between IFRSs and NL GAAP that may

exist or that may be material to a particular companys

nancial report.

Our analysis shows that there are many dierences

between IFRSs and NL GAAP. We expect that the

number o dierences will increase in the uture.

The IASB is still working on many dierent projects

which will lead to major changes to current IFRSs.

However, NL GAAP has evolved into a more stable

platorm. Beore 2005 the DASB had a strategy to

implement changes to IFRSs into its own standards.

But the strategy o the DASB was changed as a

consequence o the adoption o IFRSs by the European

Union. The current strategy o the DASB is to ocus onnancial reporting standards or non-listed entities. As a

consequence, we expect that many current dierences

between IFRSs and NL GAAP will remain and that many

orthcoming changes to IFRSs will not be implemented

in DASs. This will lead to an increase o the number

o dierences.

The goal o this publication is to provide you with a clear

and practical oversight o the key dierences between

IFRSs and NL GAAP and the developments herein.

Thereore, we publish this comparison on a yearly basis.

I want to express my gratitude to Dingeman Manschot

or his eorts in editing this comparison.

We trust that you will nd this publication a useul

tool to keep you inormed about the main dierences

between IFRSs and NL GAAP.

Ralph ter Hoeven

Leader IFRS Centre o Excellence, Rotterdam,The Netherlands


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Comparison of IFRSsand NL GAAP

The table on the ollowing pages sets out some o the

key dierences between IFRSs and NL GAAP or annual

periods beginning on or ater 1 January 2012. The table

also includes new and revised IASB Standards issued

beore 31 July 2012 that have not yet become eective

or annual periods beginning on or ater 1 January

2012. We reer to the end notes or the date on which

new and revised Standards must be applied.

The summary does not attempt to capture all o the

dierences that exist or that may be material to a

particular entitys nancial statements. Our ocus is on

dierences that are commonly ound in practice.

The signicance o these dierences and others not

included in this list will vary with respect to individual

entities, depending on such actors as the nature o the

entitys operations, the industry in which it operates, and

the accounting policy choices it has made. Reerence to

the underlying accounting standards and any relevant

national regulations is essential in understanding the

specic dierences.

The rate o progress being achieved by the IASB to

improve accounting standards means that a comparison

between standards can only refect the position at a

particular point in time. You can keep up to date on

later developments through our IAS Plus website, which

sets out the IASB agendas and timetables, as well as

project summaries and updates.

Abbreviations used in this publication are as ollows:

DAS(s) Dutch Accounting Standard(s)

DASB Dutch Accounting Standards Board

IASB International Accounting Standards Board

IAS

International nancial reporting standard created by the

predecessor body o the IASB and adopted by the IASB

when it took over in 2001

IFRICInterpretation developed by the IFRS Interpretations

Committee

IFRS(s) International Financial Reporting Standard(s)

NL GAAP

Generally Accepted Accounting Standards in the

Netherlands, comprising the Netherlands Civil Code and

the Dutch Accounting Standards published by the DASB

SICInterpretation developed by the IASB's predecessor body

and its interpretative committee


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IAS/IFRS Topic IFRSs NL GAAP

General approach Less principles-based standards with

more application guidance.

More principles-based standards

with more options and less application

guidance.

IFRS 1 First-time

adoption

General principle is ull retrospective

application o IFRSs in orce at

the time o adoption, unless theexemptions in IFRS 1 permit or require

otherwise.

No specic standard. Practice is

generally ull retrospective application

unless the transitional provisions in aspecic standard require otherwise.

IFRS 2 Equity-settled

share-based

payments

For equity-settled share-based

payment transactions the goods or

services received are measured at air

value, unless that air value cannot be

estimated reliably.

DASs contain an alternative treatment

allowing to measure equity-settled

share-based payments with employees

at their intrinsic value, initially at the

grant date and subsequently at the

end o each reporting period and at

the date o nal settlement, with any

change in intrinsic value recognised in

prot or loss.

IFRS 2 Share-basedpayments among

group entities

An entity that receives goods orservices in a share-based payment

arrangement must account or

those goods or services no matter

which entity in the group settles the

transaction, and no matter whether

the transaction is settled in shares or

cash.

DASs contain no specic guidance.

IFRS treatment is allowed.

IFRS 3 Accounting

method

All business combinations shall be

accounted or using the purchase

method. The pooling o interests

method is prohibited.

The purchase method is required or

combinations classied as acquisitions

and the pooling o interests method is

required or combinations classied as

uniting o interests.

IFRS 3 Recognising

a liability or

a planned

post-acquisition

restructuring

The cost o restructuring the acquiree

is recognised as a liability as part o

the acquisition accounting only i

it is a liability o the acquiree at the

acquisition date.

An acquirer is required to recognise as

part o the acquisition accounting a

provision or terminating or reducing

the activities o the acquiree that was

not a liability o the acquiree at the

acquisition date, provided the acquirer

satises specied criteria.

IFRS 3 Recognising

contingent

liabilities o

acquiree

An acquirer shall recognise separately

the acquirees contingent liabilities (as

dened in IAS 37) at the acquisition

date as part o allocating the cost o a

business combination, provided their

air values can be measured reliably.

An acquirer shall not recognise

separately the acquirees contingent

liabilities. Such contingent liabilities

are subsumed within the amount

recognised as goodwill or negative

goodwill.




IFRS 3 Intangibles Must always be recognised and

measured. There is no reliable

measurement exception.

An intangible asset is recognised

separately rom goodwill when it

meets the denition o an intangible

asset, its air value can be measured

reliably and it is probable that any

associated uture economic benetswill fow to the acquirer.

IFRS 3 Deerred tax

assets and

liabilities

In determining its air value, acquired

tax assets and liabilities shall be

measured against nominal value. That

means discounting is not allowed.

As an alternative, DASs allow

acquired tax assets and liabilities to be

discounted.

IFRS 3 Goodwill Goodwill shall be capitalised, but

shall subsequently not be amortised.

Instead, it shall be tested or

impairment annually.

The benchmark treatment is that

goodwill shall be capitalised and

subsequently systematically amortised

over its useul lie. There is a

rebuttable presumption that the useul

lie o goodwill will not exceed twenty

years rom initial recognition.

An entity shall, at least at each

nancial-year end, estimate the

recoverable amount o goodwill that

is amortised over a period exceeding

twenty years rom initial recognition,

even i no indication exists that it is

impaired.

Based on Dutch law, DASs also permit

the method by which goodwill is

deducted immediately rom equity or

accounted or as expense in prot or

loss.


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IFRS 3 Excess o air

value o net assets

acquired over

the acquisition

cost (negative

goodwill)

Recognise immediately as a gain. To the extent that negative goodwill

relates to expectations o uture losses

and expenses that are identied in the

acquirers plan or the acquisition and

can be measured reliably, but which

do not represent identiable liabilitiesat the date o acquisition, that

portion o negative goodwill shall be

recognised as income in prot or loss

when the uture losses and expenses

are recognised.

To the extent that negative goodwill

does not relate to identiable

expected uture losses and expenses

that can be measured reliably at the

date o acquisition, negative goodwill

shall be recognised as income in prot

or loss as ollows:

the amount o negative goodwill

not exceeding the air values o

acquired identiable non-monetary

assets shall be recognised as

income on a systematic basis over

the remaining weighted average

useul lie o the identiable,

acquired, depreciable/amortisable

assets; and

the amount o negative

goodwill in excess o the air

values o acquired, identiablenon-monetary assets shall be

recognised as income immediately.

IFRS 3 Acquisition costs Recognise immediately as an expense. Recognise as part o the cost o

acquisition.




IFRS 3 Contingent

consideration

Contingent consideration must

be measured at air value at the

acquisition date as part o the

consideration transerred. Subsequent

changes in the air value o contingent

consideration that result ormadditional inormation about acts

and circumstances that existed at

the acquisition date that the acquirer

obtains during the measurement

period are measurement period

adjustments. These adjustments

aect the cost o the acquisition (and

thereore goodwill).

The measurement period cannot

be longer than one year rom the

acquisition date.

Contingent consideration must be

recognised as part o the cost o

the acquisition i the contingent

consideration is probable and can be

measured reliably. I the amount o

contingent consideration changes asa result o a post-acquisition event,

the cost o the acquisition (and

thereore goodwill) shall be adjusted

accordingly.

DASs contain no maximum period

or these contingent consideration

adjustments.

IFRS 3 Goodwill and

non-controlling

interests

An entity is permitted to measure

non-controlling interests in the

acquiree at either:

air value; or

its proportionate share in the

recognised net asset value o the

acquiree.

The air value alternative is known

as the ull goodwill method. An

alternative may be elected or each

business combination separately.

The ull goodwill method is not

permitted.

IFRS 3 Step acquisition A previously held equity interest in the

acquiree shall be remeasured at its

acquisition-date air value. A resulting

gain or loss shall be recognised in

prot or loss.

The unit o account or the

remeasurement at air value is the

equity interest itsel.

The recognised assets and liabilities

corresponding with the previous

held equity interest in the acquiree

might (not shall) be remeasured. Any

resulting remeasurement to previously

recognised assets and liabilities shall

be credited directly to equity (as a

revaluation reserve).

The unit o account or the

remeasurement at air value are the

recognised assets and liabilities.


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IFRS 3 Pre-existing

relationships and

reacquired rights

I an acquirer and an acquiree were

parties to a pre-existing relationship,

this must be accounted or separately

rom the business combination.

In most cases, this will lead to the

recognition o a gain or loss orthe amount o the consideration

transerred to the vendor, which

eectively represents a settlement o

the pre-existing relationship.

However, where the transaction

eectively represents a reacquired

right, an intangible asset is recognised

and measured on the basis o the

remaining contractual term o the

related contract excluding any

renewals. The asset is subsequently

amortised over this remaining

contractual term.



IFRS 4 Rights and

obligations

under insurance

contracts

IFRS 4 only briefy addresses

recognition and measurement. It is an

interim standard, pending completion

o a comprehensive project.

DASB has published an accounting

standard or insurance companies.

Many dierences exist between this

accounting standard and IFRS 4.

IFRS 5 Non-current

assets (or disposal

groups)held or

sale

Specic requirements to account or

non-current assets (or disposal groups)

held or sale.

No requirements or non-current

assets (or disposal groups) held or

sale.

IFRS 6 Exploration or

and evaluation o

mineral resources

Specic extractive industry guidance

or the recognition, measurement and

disclosure o expenditure incurred on

the exploration or and evaluation o

mineral resources.



IFRS 7 Disclosures

relating to

nancial

instruments

Qualitative and quantitative

inormation required about exposure

to risks arising rom nancial

instruments, including specied

minimum disclosures about credit risk,

liquidity risk and market risk.

Disclosure requirements are similar to

the previous requirements in IAS 32

(2004).




IFRS 8 Segment reporting Disclosure o segment inormation

is required by those entities whose

equity or debt instruments are traded

in a public market.

Netherlands Civil Code requires that

large legal entities disclose inormation

on net turnover by industry and/or by

geographical area.

I an entity chooses to discloseadditional segment inormation,

the entity is recommended to apply

the guidance o DAS 350 regarding

segment inormation.

IFRS 91 Measurement o

debt instruments

A debt instrument that (1) is held

within a business model whose

objective is to collect the contractual

cash fows and (2) has contractual

cash fows that are solely payments

o principal and interest on the

principal amount outstanding must be

measured at amortised cost unless it is

designated at air value through prot

or loss (see below).

All other debt instruments must be

measured at air value through prot

or loss (FVTPL).

A air value option is also available

as an alternative to amortised

cost measurement (provided that

certain conditions are met) or debt

instruments allowing such instruments

to be designated as nancial assets at

FVTPL.

Debt instruments that classiy as

part o the trading portolio shall be

measured at air value with changes

through prot or loss.

Purchased loans and bonds held until

the end o the term are measured at

amortised cost.

Other purchased loans and bonds

are measured at amortised cost or at

air value. For nancial instruments

measured at air value an entity can

opt to recognise changes in air

value directly in prot or loss or,

to the extent the aggregate o the

revaluation is positive, to recognise it

in the shareholders equity until it is

realised.

Loans granted and other receivables

are measured at amortised cost.


equity instruments

All equity instruments (e.g. shares) are

to be measured at air value with the

deault recognition o gains and losses

in prot or loss. Only i the equity

instrument is not held or trading an

irrevocable election can be made at

initial recognition to measure it at air

value through other comprehensive

income with only dividend income

recognised in prot or loss.

Investments in listed equity

instruments are measured at air value

with changes through prot or loss.

Investments in non-listed equity

instruments are measured at cost or

at air value. For nancial instruments




to the extent the aggregate o therevaluation is positive, to recognise it

in the shareholders equity until it is

realised.


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derivatives

All derivatives within the scope o IFRS

9 are required to be measured at air

value through prot or loss.

Listed derivatives or derivatives with

a listed underlying value shall be

measured at air value through prot

or loss.

Derivatives with a non-listedunderlying value are measured at

cost or air value. Upon measurement

at air value changes in value are

recognised in prot or loss. I

derivatives are measured at cost an

impairment loss shall be recognised

when the air value is lower than

the cost unless cost price hedge

accounting is applied (see section IAS

39; types o hedge accounting).


nancial liabilities

For a nancial liability designated as at

air value through prot or loss using

the air value option, the change in

the liabilitys air value attributable

to changes in the liabilitys credit

risk is recognised directly in other

comprehensive income, unless it

creates or increases an accounting

mismatch. The amount that is

recognised in other comprehensive

income is not recycled when the

liability is settled or extinguished.

A nancial liability cannot be

designated as at air value through

prot or loss.

IFRS 102 Consolidated

nancial

statements

A parent shall consolidate investees

over which it has control. The

denition o control includes three

elements: power over an investee,

exposure or rights to variable returns

o the investee and the ability to use

power over the investee to aect the

investors returns.

Consolidated nancial statements

shall include the nancial data o the

parent itsel, subsidiaries in the group,

other group companies and other

legal entities over which it can exert

control or over which it has central

management.

IFRS 10 Potential voting

rights

Potential voting rights are considered

when they are substantive and can,

alone or in combination with other

rights, give the current ability to direct

the relevant activities.

The existence and eect o potential

voting rights are considered when

assessing control, i these rights are

currently exercisable.




IFRS 113 Joint

arrangements

Joint arrangements are classied as

either joint operations (combining

the NL GAAP concepts o jointly

controlled assets and jointly controlled

operations) or joint ventures

(equivalent to the NL GAAP concept oa jointly controlled entity).

Joint arrangements are classied

as jointly controlled assets, jointly

controlled operations or jointly

controlled entities.

IFRS 11 Joint ventures Investments in joint ventures are

accounted or by using the equity

method.

Investments in jointly controlled

entities are measured at net asset

value or accounted or using the

proportionate consolidation method.

IFRS 11 Loss o joint

control

I an investment in a joint venture

becomes an investment in an

associate, the entity continues to

apply the equity method and does not

remeasure the retained interest.



IFRS 124 Disclosure o

interests in otherentities

Requires disclosures about interest

in subsidiaries, joint arrangements,associates and structured entities.

The disclosure requirements under NL

GAAP are less comprehensive.

IFRS 135 Fair value

measurement

Denes air value and requires

disclosures about air value

measurements.

Denition o air value is based on

guidance within IFRSs beore the

introduction o IFRS 13. The disclosure

requirements about air value

measurements under NL GAAP are

less comprehensive.

IAS 1 Financial

statements

presentation

Specic line items required. Prescriptive ormats o the balance

sheet and prot or loss statement are

applicable.

IAS 1 Other

comprehensiveincome

Requirement to present other

comprehensive income as part ototal comprehensive income. Other

comprehensive income comprises

items o income and expense

(including reclassication adjustments)

that are not recognised in prot or loss

as required or permitted by IFRSs.

DASs do not require the presentation

o other comprehensive income aspart o total comprehensive income.

Changes in revaluation surplus relating

to property, plant and equipment,

gains and losses arising rom

translating the nancial statements

o a oreign operation and other

items recognised directly into equity

are presented as part o the equity

movement disclosure.


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IAS 1 Third statement

in statement o

nancial position

A third statement at the beginning

o the earliest comparative period6 is

required when an entity applies an

accounting policy retrospectively or

makes a retrospective restatement

o items in its nancial statements orwhen it reclassies items in its nancial

statements.



IAS 1 Departure rom

a standard when

compliance would

be misleading

Permitted in extremely rare

circumstances to achieve a air

presentation. Specic disclosures are

required.

Departure rom Netherlands Civil Code

is required to the extent necessary

to provide a true and air view.

The reasons or departure shall be

disclosed.

Departure rom DASs may only

occur with good reasons. There is no

requirement to disclose a departure

rom DASs.

IAS 1 Classication

o liabilities on

renancing

Current i renancing is not completed

on or beore the balance sheet date.

Allowed to present as non-current

i renancing is completed beore

the date o issuance o the nancial

statements.

IAS 1 Classication o

liabilities due on

demand due to

violation o debt

covenant

Current i the lender has not granted

a 12-month waiver on or beore the

balance sheet date.

Allowed to present as non-current

i the lender has granted a waiver

or a period greater than one year

beore the issuance o the nancial

statements or when the violation is

corrected beore the issuance o the

nancial statements.

IAS 2 Measurement o

inventory

Inventories shall be measured at the

lower o cost and net realisable value.

Inventories shall be measured at

the lower o cost and net realisable

value or at current cost (replacement

value).

IAS 2 Method or

determining cost

LIFO is prohibited. LIFO is permitted, but not

recommended.

IAS 7 Statement o cash

fows

All entities are required to present a

statement o cash fows.

Only large and medium-sized legal

entities are required to present a

statement o cash fows.

IAS 7 Classication o

expenditures on

unrecognised

assets

Only expenditures that result in a

recognised asset in the statement o

nancial position can be classied as

investing activities.

DASs contain no specic requirement.




IAS 8 Correcting errors Material prior period errors shall be

recognised retrospectively in the rst

set o nancial statements authorised

or issue ater their discovery.

Distinction between undamental and

other material errors. Fundamental

errors shall be recognised

retrospectively in the rst set o

nancial statements authorised or

issue ater their discovery. Othermaterial errors are recognised in prot

or loss.

IAS 10 Declared

dividends ater the

balance sheet date

Declared dividends through holders o

equity instruments ater the balance

sheet date shall not be recognised as a

liability at the balance sheet date.

The balance sheet shall be drawn

up beore or ater the appropriation

o prot. I the latter option is used,

a dierence with IFRSs could arise,

because an entity is allowed to present

the proposed dividend as a liability at

the balance sheet date.

IAS 11 Denition o a

construction

contract

A contract that must be specically

negotiated or the construction o an

asset.

A construction contract is dened

in a more broad sense which might

lead to a broader application o thepercentage o completion method.

IAS 11 Presentation o

construction

contracts

An entity shall present:

the gross amount due rom

customers or contract work as an

asset; and

the gross amount due to customers

or contract work as a liability.

DASs contain an alternative

treatment allowing the balance o all

construction contracts to be shown

as one amount. I this balance is a

credit balance it shall be presented as

a liability. However, i the alternative

treatment is applied an entity shall

disclose the gross amount due to

customers and the gross amount due

rom customers.

IAS 12 Revaluation o

property, plant

and equipment

Items o property, plant and

equipment can be revalued. The

dierence between the carrying

amount o a revalued asset and its tax

base is a temporary di erence and

gives rise to a deerred tax liability.

The recognition o a deerred

tax liability is not required but

recommended. However, i no

deerred tax liability is recognised,

this shall be disclosed including the

quantitative eects.

IAS 12 Recognition o

deerred tax assets

Recognition o a deerred tax asset i

it is probable that taxable prot will be

available against which the deductible

temporary dierence can be utilised.

A deerred tax asset is also recognised

i the probability o realisation is

only connected to the existence o

a deerred tax liability relating to

revalued assets.

A deerred tax asset is not recognised

i the probability o realisation is

only connected to the existence o

a deerred tax liability relating to

revalued assets.


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IAS 12 Measurement o

deerred tax assets

and liabilities

Not to be discounted. Measured at nominal value

(undiscounted) or at present value

(discounted).

IAS 12 Deerred tax:

recovery o

underlying assets

For the purposes o measuring

deerred tax, a rebuttable presumption

exists that the carrying amount o aninvestment property measured using

the air value model in IAS 40 will be

recovered entirely through sale.

DASs contain no rebuttable

presumption.

IAS 16 Costs o

decommissioning,

restoration and

similar liabilities

caused by

construction

o the item o

property, plant

and equipment

The initial estimate o the costs are

included in the initial measurement

o the item o property, plant and

equipment.

Allowed to recognise a provision or

costs o decommissioning, restoration

and similar liabilities over the useul

lie o an item o property, plant

and equipment. The increase o

the provision shall be recognised

systematically in prot or loss. The

increase o the provision shall refect

the pattern in which the related assetsuture economic benets are expected

to be consumed by the entity.

IAS 16 Major inspection

and maintenance

Generally accounted or as part o the

cost o an asset.

Allowed to recognise a provision

or costs o major inspection and

maintenance.

IAS 16 Selling o Items

held or rental

Entities that routinely sell items o

PP&E that they have previously held

or rental to others shall transer such

assets to inventories at their carrying

amount when they cease to be rented.

The proceeds rom the sale o such

assets shall be recognised as revenue

in accordance with IAS 18.



IAS 17 Initial direct

costs o lessors

(other than

those involving

manuacturer or

dealer leases)

Included in the initial measurement o

the nance lease receivable.

Not required, but allowed. An entity

has an alternative to recognise initial

direct costs directly in prot or loss.

IAS 18 Determining

whether an entity

is acting as a

principal or as an

agent

Non-mandatory guidance is included

to determine whether an entity is

acting as a principal or as an agent.






IAS 19 Post-employment

benet plans

Post-employment benet plans

are classied as either dened

contribution plans or dened benet

plans.

For dened contribution plans, thecost to be recognised in the period is

the contribution payable in exchange

or service rendered by employees

during the period.

For dened benet plans, the amount

recognised in the balance sheet shall

be based on the present value o

the dened benet obligation (in

accordance with the projected unit

credit method) minus the air value o

plan assets at the balance sheet date.

DASs make a distinction between

Dutch (equivalent) post-employment

plans and oreign post-employment

plans.

Dutch plans The entity recognises the

contribution to be paid to the

pension provider (an independent

body in the Netherlands) as an

expense.

The entity must assess on the

basis o the administration

agreement whether and, i so,

which liabilities exist at the balance

sheet date in addition to the

annual contributions payable to the

pension provider.

In addition to the liabilities owed

to the pension provider, there may

also be liabilities that are owed

to employees. These latter may

arise, among other things, rom

ully or partially ununded pension

commitments

Foreign (non-Dutch equivalent) plans

DASs require a best estimate or

the benet obligations o these

plans according to a generally

accepted actuarial method. Theliability is considered to be owed

to the employee which approach

is similar to IAS 19. However, DASs

contain no specic measurement

guidance.

IAS 19 Pension

accounting:

partial adoption o

IFRS or U.S. GAAP

Not allowed to use other standards

than those included in IFRSs.

Entities are allowed to apply

U.S. GAAP or IFRS standards relating

to pensions and other post retirement

benets in their nancial statements,

subject to the condition that these

specic standards are applied

integrally.


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IAS 19

(Revised)7Presentation o

dened benet

cost

The dened benet cost comprises:

service cost recognised in prot

or loss;

net interest on the net dened

benet liability (asset) recognised in

prot or loss; and remeasurements recognised in OCI.

DASs prescribe that pension expense

shall be part o the operational result

within prot or loss.

IAS 19

(Revised)

Other long term

employee benets

Shall be measured and presented

according to dened benet plans.

Measurement shall be based on a best

estimate approach. DASs contain no

presentation descriptions.

IAS 20 Non-monetary

government

grants

Recognised at air value or at a

nominal amount.

DASs contain no specic

requirements. On the basis o general

DASs requirements, measurement at

air value better refects economic

reality.

IAS 21 Goodwill arising

as a result o the

acquisition o aoreign entity

and any air value

adjustments to the

carrying amounts

o assets and

liabilities arising

as a result o the

acquisition

Shall be treated as assets and liabilities

o the oreign operation. Hence, they

shall be expressed in the unctionalcurrency o the oreign operation and

shall be translated to the presentation

currency at the closing rate.

Any goodwill arising as a result o the

acquisition o a oreign entity and any

air value adjustments to the carryingamounts o assets and liabilities arising

as a result o the acquisition shall be

treated as either:

assets and liabilities o the oreign

operation (like IFRS); or

assets and liabilities o the acquirer.

IAS 21 Cumulative

amount o

the exchange

dierences

deerred in

a separate

component o

equity relating to

a disposed oreign

operation

Shall be recognised in prot or loss

when the gain or loss on disposal is

recognised.

Recognition in prot or loss is only

recommended. Under the alternative

allowed it may be transerred directly

to other reserves.

IAS 23 Borrowing costs

that relate to

assets that take a

substantial period

o time to get

ready or use or

sale

Capitalisation is mandatory. Capitalisation is an available

accounting policy choice. It is also

allowed to expense borrowing costs in

prot or loss.




IAS 24 Related party

disclosures

Disclosure o transactions with related

parties is required.

Signicant transactions that have been

entered into by the entity with related

parties under irregular market (not

at arms length) conditions must be

disclosed. This disclosure requirement

does not apply to medium-sized legalentities (unless the entity is a public

limited company) and small-sized legal

entities.

IAS 24 Government-

related entities

Simplied disclosure requirements or

transactions with government-related

entities.

DASs contain no specic disclosure

requirements or transactions with

government-related entities.

IAS 26 Reporting by

retirement benet

plans

Specic guidance or the accounting

and reporting by retirement benet

plans.

In general, the guidance in

DAS 610 regarding pension unds is

comparable.

IAS 27 Subsidiary

acquired with

the intention todispose o in the

near uture

Consolidation is required. I on

acquisition the subsidiary meets the

criteria o IFRS 5, it shall be accountedor in accordance with that standard.

Consolidation is not required.

IAS 27 Consolidation

exemption or

small-sized groups

No exemption. Consolidation is not required or small-

sized groups.

IAS 27 Consolidation

exemption or

intermediate

holdings

Intermediate holdings need not

present consolidated nancial

statements i, among other

requirements, the ultimate or

any intermediate parent o the

intermediate holding produces

consolidated nancial statements orpublic use that comply with IFRSs.

Intermediate holdings need not

present consolidated nancial

statements i, among other

requirements, the nancial inormation

which the intermediate holding shall

consolidate has been included in the

consolidated nancial statementso the ultimate or any intermediate

parent and these consolidated

nancial statements have been

prepared or public use in accordance

with the provisions o the Seventh

Directive o the EU on Company Law

or in an equivalent manner (IFRSs and

other high quality GAAPs included).

IAS 27 Investment

companies

Investment companies do have to

consolidate subsidiaries.

Investment companies do not have

to consolidate subsidiaries i or these

subsidiaries a concrete exit strategy

is ormulated ever since the date o

acquisition.


20/3620


IAS 27 Separate nancial

statements

In the parents separate nancial

statements investments in subsidiaries,

associates and joint ventures (other

than those that are classied as held

or sale under IFRS 5) are accounted

or either at cost or in accordance withIAS 39.

In the parents company-only nancial

statements investments in subsidiaries,

associates and joint ventures are

accounted or at the net asset value

(goodwill is presented separately).

IAS 27 Partial disposal o

an investment in

a subsidiary that

results in loss o

control

The investment retained shall be

measured at air value at the date

when control is lost.

Any dierence between air value

and carrying amount is part o the

gain or loss on the loss o control

transaction.

Although not treated specically a

gain or loss is only allowed or the part

o the investment that is sold.

IAS 27 Partial disposal o

an investment in

a subsidiary whilecontrol is retained

This is accounted or as an equity

transaction with owners (a transaction

between the shareholders o theparent entity and the shareholders o

the non-controlling interests). Hence,

no gain or loss is recognised.



IAS 27 Acquiring

additional shares

in the subsidiary

ater control was

obtained

This is accounted or as an equity

transaction with owners Hence,

acquisition accounting is not allowed

or these acquisitions.



IAS 28 Denition o

associate

An entity in which the investor has

signicant infuence and which

is neither a subsidiary nor a joint

venture.

An entity holds an associate i the

entity, or one o its subsidiaries, has

provided capital or its own account

or urthering its own business

activities by establishing a long-term

relationship.

A distinction is made between

associates (deelnemingen) in which

signicant infuence is exercised and

other associates. This distinction is

made or measurement purposes.





associates

Associates shall be accounted or

by using the equity method in

consolidated nancial statements

and individual nancial statements.

However, the investor does not apply

the equity method when presentingseparate nancial statements

prepared in accordance with IAS 27.

In the separate nancial statements

investments in associates, joint

ventures and subsidiaries that are not

classied as held or sale in accordance

with IFRS 5 shall be accounted or

either at cost or in accordance with

IAS 39.

An associate in which signicant

infuence is exercised shall be

measured at the net asset value

(goodwill is presented separately) in

consolidated nancial statements and

company-only nancial statements.

In the company-only nancial

statements investments in subsidiaries

and joint ventures shall be measured

at the net asset value (goodwill is

presented separately).

An investor may deviate rom the net

asset value when insucient data is

available. The associate shall then be

valued at the so-called visible equity

value o the associate.

A deviation rom the net asset value

is also allowed i there are grounded

reasons or this departure. The reasons

shall be disclosed in the nancial

statements.


non-associates

Non-associates (no signicant

infuence) shall be accounted or as

nancial instruments in accordance

with IAS 39.

Associates (deelenmingen) in which

no signicant infuence is exercised

shall be measured by using the cost

method or by using current (air) value

(with value dierences recorded in a

revaluation reserve).

Non-associates shall be accounted or

as nancial instruments in accordance

with DAS 290.

IAS 28 Investment in an

associate that

is classied as

held or sale in

accordance with

IFRS 5

Shall not be accounted or using the

equity method, but is measured at the

lower o its carrying amount and air

value less cost to sell.

No accounting concept or assets held

or sale. Thereore, the general rules

on measurement continue to apply.


22/3622


IAS 28 Associates held

by venture capital

organizations,

investment unds,

unit trusts and

similar entities

No requirement to apply equity

method provided that upon initial

recognition such investments are

designated upon initial recognition as

at air value through prot or loss.

There is no exemption or venture

capital organisations and similar

entities. However, under NL GA AP

an interest in another entity will not

classiy as an associate i the denition

o an associate (deelneming) isnot met (providing capital or its

own account or urthering its own

business activities by establishing

a long-term relationship).

Non-associates shall be accounted or

as nancial instruments in accordance

with DAS 290.

IAS 28 Goodwill relating

to associates

The initial measurement o an

investment in an associate is based on

the cost o acquisition. Any dierence

between the cost o acquisition

and the investors share o the net

identiable assets o the associate

is accounted or in accordance with

IFRS 3.

Goodwill is included in the carrying

amount o the investment. However,

amortisation is not permitted. Instead,

the entire carrying amount o the

investment is tested or impairment

under IAS 36 Impairment o

assets, whenever application o the

requirements in IAS 39 indicates that

the investment may be impaired.

The recognition is based on the

investors share o the air value o the

net identiable assets o the associate.

Any goodwill shall be recognised and

presented separately as an intangible

asset.

Goodwill is accounted or in

accordance with the accounting or

goodwill relating to subsidiaries.

IAS 28 Excess o air

value o net assets

acquired over

the acquisition

cost (negative

goodwill)

Recognised immediately as a gain. Similar to the accounting o negative

goodwill relating to subsidiaries (we

reer to the dierences relating to

IFRS 3).

IAS 28 Loss o signicant

infuence

On loss o signicant infuence, the

remaining investment is remeasured to

its air value at that date, with the gain

or loss recognised in prot or loss.

Thereater, IAS 39 is applied to the

remaining investment.

On loss o signicant infuence the last

known carrying amount under the

net asset value shall be the basis or

subsequent measurement at cost or

air value.




IAS 31 Joint venture in

separate nancial

statements

In the separate nancial statements

investments in joint ventures that

are not classied as held or sale

in accordance with IFRS 5 shall be

accounted or either at cost or in

accordance with IAS 39.

A joint venture shall be measured

according to the net asset value in the

company-only nancial statements.

IAS 31 Loss o joint

control

On loss o joint control, the remaining

investment is remeasured to its

air value at that date, with the

gain or loss recognised in prot or

loss. Thereater, IAS 28 or IAS 39,

as appropriate, is applied to the

remaining investment.

DASs contain no specic requirements.

Accounting in analogy with loss o

signicant infuence is appropriate.

IAS 32 Classication as

equity or liability

In the consolidated nancial

statements, individual and separate

nancial statements an instrument

is classied as a liability i the issuer

could be obliged to settle in cash oranother nancial instrument.


statements the classication o

nancial instruments by issuers is

based on the economic substance

o a nancial instrument, with someexceptions.



nancial instruments by the issuer

is based on the legal orm o an

instrument instead o the economic

substance o a nancial instrument.

IAS 32 Preerence shares

with contingent

dividends

depending on

the availability o

uture prot

Classication as a liability is required,

because the payment o dividend

is not at the discretion o the issuer

(cannot be avoided indenitely).

Classication as equity instrument

or as nancial liability (accounting

policy choice which shall be disclosed

by entity). DASs consider dividend

payments based on the availability

o uture prot a basic eature o an

equity instrument.

IAS 32 Financial

instrument that

contains both a

liability and an

equity element

The issuer shall classiy the

instruments component parts

separately in accordance with

the substance o the contractual

arrangement on initial recognition and

the denitions o a nancial liability

and an equity instrument.

The issuer may, but is not required to,

classiy the instruments components

separately in accordance with

the substance o the contractual

arrangement on initial recognition and

the denitions o a nancial liability

and an equity instrument. I an entity

chooses not to recognise components

separately, the instrument is classied

based on the prevailing characteristicso the instrument.


24/3624


IAS 32 Puttable

instruments at air

value

Classied as equity i they are

subordinated to all other classes

o instruments and i certain other

criteria are met.

Classication as equity is allowed, but

not required i they are subordinated

to all other classes o instruments and

i certain other criteria are met.

IAS 32 Classication

o rights issues(rights, options

or warrants) that

are denominated

in a currency

other than

the unctional

currency o the

issuer

Rights issues where the holder has

the right to acquire a xed number othe entitys own equity instruments

or a xed amount o any currency

are classied as an equity instrument

i, and only i, the entity oers the

nancial instrument pro rata to all

o its existing owners o the same

class o its own non-derivative equity

instruments.

DASs contain no specic guidance or

the classication o rights issues thatare denominated in a currency other

than the unctional. We believe that

the IFRS treatment is an acceptable

alternative under NL GAAP.

IAS 36 Timing o

impairment tests

An impairment test shall be perormed

i an indication o impairment exists,

except or intangible assets with

indenite useul lives, intangible assetsnot yet in use and goodwill acquired

in a business combination. For these

assets an impairment test shall be

perormed at least annually.

An impairment test shall be perormed

i an indication o impairment exists.

IAS 36 Reversals o

impairment losses

or goodwill

Prohibited. Required i the impairment was

due to a specic external event o

an exceptional nature that is not

expected to recur and subsequent

external events have occurred that

reverse the eect o that event.

Prohibited in all other situations.

IAS 37 Cost o major

maintenance

Shall be capitalised as a component

o the asset i recognition criteria

are met. Otherwise the cost shall be

recognised directly in prot or loss.

Allowed to systematically recognise a

provision over the interval period o

the maintenance projects.

IAS 37 Provision or

restructuring

Shall only be recognised i a

constructive obligation or a

restructuring arises. This is the case

when:

there is a ormal plan; and

the entity has raised a valid

expectation in those aected that

it will carry out the plan by either

starting to implement the plan or

announcing its main eatures to

those aected by it.

Allowed to recognise i the

restructuring was started or

announced ater the balance sheet

date but beore the date o issue, i

certain conditions have been met.





provisions

Where the eect o the time value o

money is material, the amount o a

provision shall be the present value. I

the eect is not material, the use o

the nominal value is allowed.

May be measured at present value or

nominal value.

IAS 37 Accrued interest Where discounting is used, thecarrying amount o a provision

increases in each period with the

accrued interest, to refect the passage

o time. This increase is recognised as

borrowing cost in prot or loss.

Additions to the provision due toaccrued interest shall be presented

either as interest expenses or as part

o the related expense in prot or loss.

IAS 38 Useul lie Required to regard an intangible

asset as having an indenite useul

lie when, based on an analysis o

all o the relevant actors, there is

no oreseeable limit to the period

over which the asset is expected to

generate net cash infows or theentity.

Useul lie o an intangible asset is

always nite.

IAS 38 Intangibles with

indenite useul

lie

Shall not be amortised. The useul lie

o such an intangible shall be reviewed

each reporting period.

No distinction between intangibles

with a nite and indenite useul lie.

Intangibles shall be amortised based

on the expected useul lie. There is a

rebuttable presumption that the useul

lie o an intangible xed asset does

not exceed twenty years.

IAS 38 Impairment test Intangible assets with an indenite

useul lie are subject to an annual

impairment test.

Intangible assets with a useul lie

exceeding 20 years and intangible

assets not yet taken into use are

subject to an annual impairment test.

IAS 39 Categories o

nancial assets

Financial assets must be classied

into one o our categories: at air

value through prot or loss, loans

and receivables, held-to-maturity or

available or sale.

Financial assets must be classied

into one o ve categories: trading

portolio, derivatives, acquired

loans and bonds, loans and other

receivables and investment in equity

instruments.


26/3626


IAS 39 Measurement

o nancial

assets (excluding

derivatives)

Ater initial recognition nancial

assets are measured at air value

except or the ollowing categories o

nancial assets, that shall be valued at

(amortised) cost:

loans and receivables; held-to-maturity investments; and

any nancial assets that do not

have a quoted market price in an

active market and whose air value

cannot be reliably measured.

Financial assets that classiy as part

o the trading portolio shall be

measured at air value.

Purchased loans and bonds held until

the end o the term are measured atamortised cost.

Other purchased loans and bonds are

measured at amortised cost or at air

value.

Loans granted and other receivables

are measured at amortised cost.

Investments in listed equity

instruments are measured at air value.

Investments in equity instruments

without stock exchange quotation are

measured at cost or at air value.


nancial liabilities

(excluding

derivatives)

Ater initial recognition an entity

shall measure all nancial liabilities

at amortised cost using the eective

interest method, except or:

nancial liabilities at air value

through prot or loss;

nancial liabilities that arise when

a transer o a nancial asset does

not qualiy or derecognition or

when the continuing involvement

approach applies;

nancial guarantee contracts; and

commitments to provide a loan at

a below-market interest rate.

Ater initial recognition an entity

shall measure nancial liabilities at

amortised cost, except or nancial

liabilities that classiy as part o the

trading portolio.





derivatives

All derivatives are measured at air

value through prot or loss, except or

derivatives that are part o a hedging

relationship (cash fow hedge or

hedge o a net investment in a oreign

entity).

Derivatives that classiy as part o the

trading portolio shall be measured at

air value through prot or loss.

Listed derivatives or derivatives with

a listed underlying value shall bemeasured at air value with changes

in value recognised directly in prot

or loss.

Derivatives with a non-listed

underlying value are measured at cost

price or air value. Upon measurement

at air value changes in value are


IAS 39 Changes in air

value

A recognised gain or loss arising rom

a change in the air value o a nancial

asset or nancial liability that is not

part o a hedging relationship shall be

reported as ollows:

a gain or loss on a nancial asset or

liability held or trading (including

derivatives) or designated at air

value through prot or loss shall be

included in net prot or loss or the

period in which it arises;

a gain or loss on an available or

sale nancial asset shall be either

included in net prot or loss or

the period in which it arises or

recognised directly in equity.

A recognised gain or loss arising rom

a change in the air value o nancial

instruments that classiy as part o the

trading portolio shall be recognised in

prot or loss.

For other nancial instruments




to the extent the aggregate o the

revaluation is positive, to recognise

it in the shareholders equity until

it is realised. Impairments below

(amortised) cost shall be accounted or

directly in prot or loss.

IAS 39 Eective interest

method

Application o eective interest

method is required.

Linear amortisation is allowed i that

does not lead to signicant dierences

with application o eective interest

method.


28/3628


IAS 39 Embedded

derivatives

An embedded derivative shall be

separated rom the host contract and

accounted or as a derivative i:

the economic characteristics and

risks o the embedded derivative

are not closely related to theeconomic characteristics and risks

o the host contract;

a separate instrument with the

same terms as the embedded

derivative would meet the

denition o a derivative; and

the hybrid (combined) instrument

is not measured at air value with

changes in air value recognised

in prot or loss (i.e., a derivative

that is embedded in a nancial

asset or nancial liability at air

value through prot or loss is not

separated).

I an entity adopts a policy to measure

stand-alone derivatives at air value,

the accounting or embedded

derivatives is in line with IAS 39.

Otherwise the embedded derivative

shall not be separated rom the hostcontract.

IAS 39 Types o hedge

accounting

IAS 39 identies three types o

hedging relationships:

air value hedge;

cash fow hedge; and

hedge o a net investment in a

oreign entity.

The types o hedge accounting under

IAS 39 are applicable. However,

NL GAAP also identies cost price

hedge accounting. In the event o cost

price hedge accounting recognition

occurs as ollows:

as long as the hedged item is not

yet recognised in the balance

sheet, the hedge instrument is not

revalued;

i the hedged item is recognised in

the balance sheet and comprises

a oreign currency monetary item,

the derivative is measured at the

rate as at balance sheet date;

when the results o the hedged

position are recognised in prot

or loss, the related result on

the hedge instrument is also





IAS 39 Derecognition o

nancial assets

Derecognition o a nancial asset

is not permitted to the extent to

which the transeror has retained (1)

substantially all risks and rewards o

the transerred asset or part o the

asset, or (2) control o an asset or parto an asset or which it has neither

retained nor transerred substantially

all risks and rewards.

Unlike IFRSs, the criteria or

derecognition ocus on a signicant

change in the economic reality

(based on risks and rewards that

are actually expected to occur).

Control is not a specic actor to beconsidered. As a consequence the

derecognition provisions under NL

GAAP are very principles-based and

as a consequence provide more room

or interpretation than under IFRSs.

However, we believe that under NL

GAAP its allowed to use the IAS 39

derecognition provisions as urther

guidance or complex derecognition

issues.

IAS 40 Fair value changes

o investment

property

measured at air

value

Shall be recognised in prot or loss.

A revaluation reserve shall not be

recognised.

Shall be recognised in prot or loss.

However, a revaluation reserve shall

be recognised or the dierence

between cost and the air value until

the air value is realised.

IAS 41 Agriculture Specic accounting requirements or

the ollowing when they relate to

agricultural activity :

biological assets; and

agricultural produce at the point o

harvest.

No specic requirements or

agricultural activity.

IFRIC 1 Decommissioning,

restoration and

other liabilities

Specic accounting requirements or

changes in the measurement.

I the cost o an item o property,

plant and equipment includes

the initial estimate o the costs o

dismantling and removing the item

and restoring the site on which it is

located, the accounting or changes in

the measurement o these liabilities is

similar to IFRIC 1 treatment.

IFRIC 2 Members shares

in co-operative

entities and similar

instruments

Specic requirements or the

classication o these nancial

instruments as nancial liabilities or

equity by the issuer.


statements the classication o these

nancial instruments by issuers is like

the classication under IFRSs.



nancial instruments by the issuer isbased on the legal orm o a nancial

instrument instead o the economic

substance o the instrument.


30/3630


IFRIC 4 Determining

whether an

arrangement

contains a lease

Shall be based on the substance o

the arrangement and requires an

assessment o whether:

ulllment o the arrangement is

dependent on the use o a specic

asset or assets (the asset); and the arrangement conveys a right to

use the asset.

Guidance under DASs is similar to the

requirements under IFRSs.

IFRIC 5 Rights to interests

arising rom

decommissioning,

restoration and

environmental

rehabilitation

unds

Specic requirements or the

accounting or an interest in a und

and the accounting or obligations to

make additional contributions.

DASs do not contain specic guidance

or the accounting or an interest in

a und. However, based on general

requirements the required accounting

shall be similar to IFRIC 5.

The guidance under DASs relating to

the accounting or obligations to make

additional contributions is similar to

the requirements under IFRSs.

IFRIC 6 Liabilities arising

rom participating

in a specic

market

Participation in the market during the

measurement period is the obligating

event in accordance with IAS 37.



IFRIC 7 Applying the

restatement

approach under

IAS 29

In the reporting period in which

an entity identies the existence o

hyperinfation in the economy o its

unctional currency, not having been

hyperinfationary in the prior period,

the entity shall apply the requirements

o IAS 29 as i the economy had

always been hyperinfationary.

The required accounting under

IFRSs is allowed, but not required.

An entity can choose to present

nancial statements to refect the

eect o infation rom the beginning

o the reporting period in which

the entity identies the existence

o hyperinfation in the economy o

its unctional currency (a starting

index o 100% at the beginning

o the reporting year in which the

entity identies the existence o

hyperinfation).




IFRIC 9 Reassessment

o embedded

derivatives

An entity shall assess whether an

embedded derivative is required to be

separated rom the host contract and

accounted or as a derivative when

the entity rst becomes a party to the

contract. Subsequent reassessmentis prohibited unless there is either

(a) a change in the terms o the

contract that signicantly modies

the cash fows that otherwise would

be required under the contract or (b)

a reclassication o a nancial asset

out o the air value through prot

or loss category, in which cases an

assessment is required.

DASs contain no specic guidance

relating to the reassessment o

embedded derivatives.


IFRIC 10 Interim nancial

reporting and

impairment

An entity shall not reverse an

impairment loss recognised in a

previous interim period in respect o

goodwill.

DASs do not contain this restriction.

Application o the consensus in

IFRIC 10 is allowed, but not required.

IFRIC 12 Service concess ion

arrangements

For all arrangements alling within

the scope o IFRIC 12 (essentially

those where the inrastructure assets

are not controlled by the operator),

the inrastructure assets are not

recognised as property, plant and

equipment o the operator. Rather,

depending on the terms o the

arrangement, the operator recognises:

a nancial asset; or

an intangible asset.



IFRIC 13 Customer loyalty

programs

IFRIC 13 requires entities to account

or award credits as a separately

identiable component o the sales

transaction(s) in which they are

granted.

A granted award is accounted or as a

separate component o a transaction i

the awards can be exchanged or sales

or services which the entity delivers

as part o their normal activities

and the value o the awards are not

insignicant in relation to the revenue

in which they are granted.

IFRIC 14 The limit on a

dened benet

asset

IFRIC 14 provides guidance on how to

assess the limit on the amount o the

surplus that can be recognised as a

dened benet asset. It also explains

how the pensions asset or liability maybe aected when there is a statutory

or contractual minimum unding

requirement.



32/3632


IFRIC 15 Construction o

real estate

An agreement or the construction o

real estate is a construction contract

within the scope o IAS 11 only when

the buyer is able to speciy the major

structural elements o the design o

the real estate beore constructionbegins and/or speciy major structural

changes once construction is in

progress (whether it exercises that

ability or not). I the buyer has that

ability, IAS 11 applies. I the buyer

does not have that ability, IAS 18

applies.

Pre-completion sales contracts

entered into by an entity carrying out

a real estate development project

are accounted or as construction

contracts. Where the outcome o

the project can be reliably estimated,revenue and expenses must be

recognised by applying the percentage

o completion method to that

proportion o the project represented

by the individual units o property

sold.

IFRIC 16 Hedges o a net

investment in a

oreign operation

The presentation currency does

not create an exposure to which an

entity may apply hedge accounting.

Consequently, a parent entity may

designate as a hedged risk only the

oreign exchange dierences arising

rom a dierence between its own

unctional currency and that o its

oreign operation.

The hedging instrument(s) may be

held by any entity or entities within

the group as long as the designation,

eectiveness and documentation

requirements or a hedge o a net

investment are satised.



IFRIC 17 Dis tributions o

non-cash assets to

owners

A dividend payable shall be recognised

when the dividend is appropriately

authorised and is no longer at the

discretion o the entity. An entity

shall measure the dividend payable

at the air value o the net assets to

be distributed. The liability shall be

remeasured at each reporting date

with changes recognised directly

in equity. The dierence between

the dividend paid and the carrying

amount o net assets distributed shall

be recognised in prot or loss.






IFRIC 18 Transers o assets

rom customers

IFRIC 18 deals with circumstances

where an entity receives rom a

customer an item o PP&E that

the entity then must use either to

connect the customer to a network

or to provide the customer withongoing access to a supply o

goods or services. IFRIC 18 provides

guidance on when a recipient shall

recognise such assets in their nancial

statements. Where recognition is

appropriate, the deemed cost o the

asset is its air value on the date o

the transer. IFRIC 18 also provides

guidance on the pattern o revenue

recognition arising on the transer o

the asset.



IFRIC 19 Extinguishing

nancial liabilities

with equity

instruments

An entity shall measure the equity

instruments issued as extinguishment

o the nancial liability at their air

value on the date o extinguishment o

the liability, unless that air value is not

reliably measurable. In this case the

equity instruments shall be measured

to refect the air value o the liability

extinguished.

Any dierence between the carrying

amount o the liability (or the part o

the liability) extinguished and the air

value o equity instruments issued is




IFRIC 208 Stripping costs IFRIC 20 provides guidance or waste

removal costs that are incurred

in surace mining activity during

the production phase o the mine

(production stripping costs).



SIC-7 Introduction o

the euro

Requirements regarding the

accounting or the changeover rom

the national currencies o participating

Member States o the European Union

to the euro.




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SIC-10 Government

assistance

Government assistance meets the

denition o government grants in

IAS 20, even i there are no conditions

specically relating to the operating

activities o the entity other than to

operate in certain regions or industrysectors.



SIC-12 Special purpose

entities (SPE)

An SPE shall be consolidated when the

substance o the relationship between

an entity and the SPE indicates that

the SPE is controlled by that entity.

SIC-12 provides circumstances which

may indicate a relationship in which an

entity controls an SPE.



SIC-13 Non-monetary

contributions by

venturers

Requirements regarding the

accounting or non-monetary

contributions by venturers.



SIC-15 Incentives oroperating leases

All incentives or the agreement o anew or renewed operating lease shall

be recognised as an integral part o

the net consideration agreed or the

use o the leased asset.

Guidance under DASs is similar to therequirements under IFRSs.

SIC-25 Changes in the tax

status o an entity

A change in the tax status o an

entity does not give rise to increases

or decreases in amounts recognised

outside prot or loss.



SIC-27 Evaluating the

substance o

transactions

involving the legalorm o a lease

A series o transactions that involve

the legal orm o a lease is linked

and shall be accounted or as one

transaction when the overall economiceect cannot be understood without

reerence to the series o transactions

as a whole.



SIC-29 Disclosure o

service concession

arrangements

Specic disclosure requirements or

operators and grantors relating to

service concession arrangements.



SIC-31 Bar ter transactions

involving

advertising

services

Guidance to determine when a seller

reliably can measure revenue at the

air value o the advertising serv ices

received or provided in a barter

transaction.



SIC-32 Website costs Guidance to determine whether the

website is an internally generated

intangible asset and to determine the

appropriate accounting treatment o

such expenditure.





(Endnotes)

1. IFRS 9 Financial Instruments: Classication and Measurement is eective or annual periods beginning on or

ater 1 January 2013, with earlier application permitted. Supersedes and modies certain parts o IAS 39 rom

date o application. Endorsement o IFRS 9 or use in Europe has been postponed. IASB has recently proposed to

the delay the mandatory application o IFRS 9 to annual periods beginning on or ater 1 January 2015.

2. IFRS 10 Consolidated Financial Statements is eective or annual periods beginning on or ater 1 January 2013,

with earlier application permitted. Supersedes certain parts o IAS 27 rom date o application. On 1 June 2012,

ARC voted on a regulation that requires IFRS 10 to be applied, at the latest, as rom the commencement date o

a companys rst nancial year starting on or ater 1 January 2014 (early adoption would be permitted once the

standards have been endorsed).

3. IFRS 11 Joint Arrangements is eective or annual periods beginning on or ater 1 January 2013, with earlier

application permitted. Supersedes IAS 31 rom date o application. On 1 June 2012, ARC voted on a regulation

that requires IFRS 11 to be applied, at the latest, as rom the commencement date o a companys rst nancial

year starting on or ater 1 January 2014 (early adoption would be permitted once the standards have been

endorsed).

4. IFRS 12 Disclosure o Interests in Other Entities is eective or annual periods beginning on or ater 1 January

2013, with earlier application permitted. On 1 June 2012, ARC voted on a regulation that requires IFRS 12 to be

applied, at the latest, as rom the commencement date o a companys rst nancial year starting on or ater 1

January 2014 (i.e. early adoption would be permitted once the standard has been endorsed).

5. IFRS 13 Fair Value Measurement is eective or annual periods beginning on or ater 1 January 2013, withearlier application permitted.

6. This requirement is changed as a consequence o amendments to IAS 1 as part o the Annual Improvements

2009-2011 Cycle, issued in May 2012. An entity shall present a third statement at the beginning o the preceding

period instead o the beginning o the earliest comparative period presented (i an entity applies an accounting

policy retrospectively or makes a retrospective restatement o items in it s nancial statements or when it

reclassies items in its nancial statements). Related notes to this third balance sheet are no longer required as

a consequence o these amendments to IAS 1. An entity shall apply this amendment retrospectively or annual

periods beginning on or ater 1 January 2013. Earlier application is permitted.

7. IAS 19 (Revised) Employee Benets is eective or annual periods beginning on or ater 1 January 2013, with

earlier application permitted.

8. IFRIC 20 Stripping Costs in the Production Phase o a Surace Mine applies to annual periods beginning on or

ater 1 January 2013. Earlier application is permitted.


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