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            COMMISSION REGULATION (EC) No 2238/2004

of 29 December 2004         

amending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as regards IASs IFRS 1, IASs Nos 1 to 10, 12 to 17, 19 to 24, 27 to 38, 40 and 41 and SIC Nos 1 to 7, 11 to 14, 18 to 27 and 30 to 33

(Text with EEA relevance)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (1), and in particular Article 3(1) thereof,

Whereas:

HAS ADOPTED THIS REGULATION:

Article 1

Annex to Regulation (EC) No 1725/2003 is amended as follows:

Article 2

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Union.

It shall apply from 1 January 2005 at the latest.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 29 December 2004.

For the Commission

Charlie McCREEVY            

Member of the Commission

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(1)OJ L 243, 11.9.2002, p. 1.

(2)OJ L 261, 13.10.2003, p. 1. Regulation as amended by Regulation (EC) No 2237/2004 (OJ L 393, 31.12.2004, p. 1).

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ANNEX

INTERNATIONAL ACCOUNTING STANDARDS
IAS No
Title

Reproduction allowed within the European Economic Area. All existing rights reserved outside the EEA with the exception of the right to reproduce for the purposes of personal use or other fair dealing. Further information can be obtained from the IASB at www.iasb.org.uk

INTERNATIONAL ACCOUNTING STANDARD 1

Presentation of Financial Statements

SUMMARY

This revised Standard supersedes IAS 1 (revised 1997) Presentation of Financial Statements and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

PURPOSE OF FINANCIAL STATEMENTS

COMPONENTS OF FINANCIAL STATEMENTS

DEFINITIONS

OVERALL CONSIDERATIONS

Fair Presentation and Compliance with IFRSs

Going Concern

Accrual Basis of Accounting

Consistency of Presentation

Materiality and Aggregation

Offsetting

Comparative Information

STRUCTURE AND CONTENT

Introduction

Identification of the Financial Statements

Reporting Period

Balance Sheet

Current/Non-current Distinction

Current Assets

Current Liabilities

Information to be Presented on the Face of the Balance Sheet

Information to be Presented either on the Face of the Balance Sheet or in the Notes

Income Statement

Profit or Loss for the Period

Information to be Presented on the Face of the Income Statement

Information to be Presented either on the Face of the Income Statement or in the Notes

Statement of Changes in Equity

Cash Flow Statement

Notes

Structure

Disclosure of Accounting Policies

Key Sources of Estimation Uncertainty

Other Disclosures

EFFECTIVE DATE

WITHDRAWAL OF IAS 1 (REVISED 1997)

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 2

Inventories

SUMMARY

This revised Standard supersedes IAS 2 (revised 1993) Inventories and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

MEASUREMENT OF INVENTORIES

Cost of Inventories

Costs of Purchase

Costs of Conversion

Other Costs

Cost of Inventories of a Service Provider

Cost of Agricultural Produce Harvested from Biological Assets

Techniques for the Measurement of Cost

Cost Formulas

Net Realisable Value

RECOGNITION AS AN EXPENSE

DISCLOSURE

EFFECTIVE DATE

WITHDRAWAL OF OTHER PRONOUNCEMENTS

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 8

Accounting Policies, Changes in Accounting Estimates and Errors

SUMMARY

This revised Standard supersedes IAS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

ACCOUNTING POLICIES

Selection and Application of Accounting Policies

Consistency of Accounting Policies

Changes in Accounting Policies

Applying Changes in Accounting Policies

Retrospective application

Limitations on retrospective application

Disclosure

CHANGES IN ACCOUNTING ESTIMATES

Disclosure

Errors

Limitations on Retrospective Restatement

Disclosure of Prior Period Errors

IMPRACTICABILITY IN RESPECT OF RETROSPECTIVE APPLICATION AND RETROSPECTIVE RESTATEMENT

EFFECTIVE DATE

WITHDRAWAL OF OTHER PRONOUNCEMENTS

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 10

Events after the Balance Sheet Date

SUMMARY

This revised Standard supersedes IAS 10 (revised 1999) Events After the Balance Sheet Date and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

RECOGNITION AND MEASUREMENT

Adjusting Events after the Balance Sheet Date

Non-adjusting Events after the Balance Sheet Date

Dividends

GOING CONCERN

DISCLOSURE

Date of Authorisation for Issue

Updating Disclosure about Conditions at the Balance Sheet Date

Non-adjusting Events after the Balance Sheet Date

EFFECTIVE DATE

WITHDRAWAL OF IAS 10 (REVISED 1999)

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 16

Property, Plant and Equipment

SUMMARY

This revised Standard supersedes IAS 16 (1998) Property, Plant and Equipment and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

RECOGNITION

Initial Costs

Subsequent Costs

MEASUREMENT AT RECOGNITION

Elements of Cost

Measurement of Cost

MEASUREMENT AFTER RECOGNITION

Cost Model

Revaluation Model

Depreciation

Depreciable Amount and Depreciation Period

Depreciation Method

Impairment

Compensation for Impairment

DERECOGNITION

DISCLOSURE

TRANSITIONAL PROVISIONS

Effective Date

WITHDRAWAL OF OTHER PRONOUNCEMENTS

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 17

Leases

SUMMARY

This revised Standard supersedes IAS 17 (revised 1997) Leases and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

CLASSIFICATION OF LEASES

LEASES IN THE FINANCIAL STATEMENTS OF LESSEES

Finance Leases

Initial Recognition

Subsequent Measurement

Operating Leases

LEASES IN THE FINANCIAL STATEMENTS OF LESSORS

Finance Leases

Initial Recognition

Subsequent Measurement

Operating Leases

SALE AND LEASEBACK TRANSACTIONS

TRANSITIONAL PROVISIONS

EFFECTIVE DATE

WITHDRAWAL OF IAS 17 (REVISED 1997)

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(*1)  See also SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

(*2)  See also SIC-15 Operating Leases – Incentives

(*3)  See also SIC-15 Operating Leases – Incentives

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 21

The Effects of Changes in Foreign Exchange Rates

SUMMARY

This revised Standard supersedes IAS 21 (revised 1993) The Effects of Changes in Foreign Exchange Rates and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

Elaboration on the Definitions

Functional Currency

Net Investment in a Foreign Operation

Monetary Items

SUMMARY OF THE APPROACH REQUIRED BY THIS STANDARD

REPORTING FOREIGN CURRENCY TRANSACTIONS IN THE FUNCTIONAL CURRENCY

Initial Recognition

Reporting at Subsequent Balance Sheet Dates

Recognition of Exchange Differences

Change in Functional Currency

USE OF A PRESENTATION CURRENCY OTHER THAN THE FUNCTIONAL CURRENCY

Translation to the Presentation Currency

Translation of a Foreign Operation

Disposal of a Foreign Operation

TAX EFFECTS OF ALL EXCHANGE DIFFERENCES

DISCLOSURE

EFFECTIVE DATE AND TRANSITION

WITHDRAWAL OF OTHER PRONOUNCEMENTS

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(*1)  See also SIC-7 Introduction of the Euro.

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 24

Related Party Disclosures

SUMMARY

This revised Standard supersedes IAS 24 (reformatted 1994) Related Party Disclosures and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

PURPOSE OF RELATED PARTY DISCLOSURES

DEFINITIONS

DISCLOSURE

EFFECTIVE DATE

WITHDRAWAL OF IAS 24 (REFORMATTED 1994)

APPENDIX

Amendment to IAS 30

This amendment in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, this amendment shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 27

Consolidated and Separate Financial Statements

SUMMARY

This revised Standard supersedes IAS 27 (revised 2000) Consolidated Financial Statements and Accounting for Investments in Subsidiaries and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

SCOPE

DEFINITIONS

PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

SCOPE OF CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATION PROCEDURES

ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES, JOINTLY CONTROLLED ENTITIES AND ASSOCIATES IN SEPARATE FINANCIAL STATEMENTS

DISCLOSURE

EFFECTIVE DATE

WITHDRAWAL OF OTHER PRONOUNCEMENTS

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(*1)  See also SIC-12 Consolidation — Special Purpose Entities.

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 28

Investments in Associates

SUMMARY

This revised Standard supersedes IAS 28 (revised 2000) Accounting for Investments in Associates and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

SCOPE

DEFINITIONS

Significant Influence

Equity Method

APPLICATION OF THE EQUITY METHOD

Impairment Losses

Separate Financial Statements

DISCLOSURE

EFFECTIVE DATE

WITHDRAWAL OF OTHER PRONOUNCEMENTS

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 31

Interests in Joint Ventures

SUMMARY

This revised Standard supersedes IAS 31 (revised 2000) Financial Reporting of Interests in Joint Ventures and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

SCOPE

DEFINITIONS

Forms of Joint Venture

Joint Control

Contractual Arrangement

JOINTLY CONTROLLED OPERATIONS

JOINTLY CONTROLLED ASSETS

JOINTLY CONTROLLED ENTITIES

Financial Statements of a Venturer

Proportionate Consolidation

Equity Method

Exceptions to Proportionate Consolidation and Equity Method

Separate Financial Statements of a Venturer

TRANSACTIONS BETWEEN A VENTURER AND A JOINT VENTURE

REPORTING INTERESTS IN JOINT VENTURES IN THE FINANCIAL STATEMENTS OF AN INVESTOR

OPERATORS OF JOINT VENTURES

DISCLOSURE

EFFECTIVE DATE

WITHDRAWAL OF IAS 31 (REVISED 2000)

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(*1)  See also SIC-13 Jointly Controlled Entities — Non-Monetary Contributions by Venturers.

APPENDIX

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 33

Earnings per Share

SUMMARY

This revised Standard supersedes IAS 33 (1997) Earnings Per Share and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

MEASUREMENT

Basic Earnings per Share

Earnings

Shares

Diluted Earnings per Share

Earnings

Shares

Dilutive Potential Ordinary Shares

Options, warrants and their equivalents

Convertible instruments

Contingently issuable shares

Contracts that may be settled in ordinary shares or cash

Purchased options

Written put options

RETROSPECTIVE ADJUSTMENTS

PRESENTATION

DISCLOSURE

EFFECTIVE DATE

WITHDRAWAL OF OTHER PRONOUNCEMENTS

APPENDIX A

Application Guidance

This appendix is an integral part of the Standard.

Profit or Loss Attributable to the Parent Entity

Rights Issues

Control Number

Average Market Price of Ordinary Shares

Options, Warrants and Their Equivalents

Written Put Options

Instruments of Subsidiaries, Joint Ventures or Associates

Participating Equity Instruments and Two-Class Ordinary Shares

Partly Paid Shares

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(*1)  In this guidance, monetary amounts are denominated in ‘currency units’ (CU).

APPENDIX B

Amendments to Other Pronouncements

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2005. If an entity applies this Standard for an earlier period, these amendments shall be applied for that earlier period.

INTERNATIONAL ACCOUNTING STANDARD 40

Investment Property

SUMMARY

This revised Standard supersedes IAS 40 (2000) Investment Property and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.

OBJECTIVE

SCOPE

DEFINITIONS

RECOGNITION

MEASUREMENT AT RECOGNITION

MEASUREMENT AFTER RECOGNITION

Accounting Policy

Fair Value Model

Inability to Determine Fair Value Reliably

Cost Model

TRANSFERS

DISPOSALS

DISCLOSURE

Fair Value Model and Cost Model

Fair Value Model

Cost Model

TRANSITIONAL PROVISIONS

Fair Value Model

Cost Model

EFFECTIVE DATE

WITHDRAWAL OF IAS 40 (2000)

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