# L_2011046EN.01000101.xml

| 19.2.2011 | EN | Official Journal of the European Union | L 46/1 |
| --- | --- | --- | --- |

19.2.2011

EN

Official Journal of the European Union

L 46/1

---

COMMISSION REGULATION (EU) No 149/2011

of 18 February 2011

amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards Improvements to International Financial Reporting Standards (IFRSs)

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

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:

| (1) | By Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (2) certain international standards and interpretations that were in existence at 15 October 2008 were adopted. |
| --- | --- |

(1)

By Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (2) certain international standards and interpretations that were in existence at 15 October 2008 were adopted.

| (2) | On 10 May 2010, the International Accounting Standards Board (IASB) published Improvements to International Financial Reporting Standards, hereinafter ‘the Improvements’, in the framework of its annual improvement process which aims at streamlining and clarifying the international accounting standards. The majority of the amendments are clarifications or corrections of existing International Financial Reporting Standards (IFRS) or amendments consequential to changes previously made to IFRS. Three amendments (two amendments to IFRS 1 and one amendment to IAS 34) involve changes to the existing requirements or additional guidance on the implementation of those requirements. |
| --- | --- |

(2)

On 10 May 2010, the International Accounting Standards Board (IASB) published Improvements to International Financial Reporting Standards, hereinafter ‘the Improvements’, in the framework of its annual improvement process which aims at streamlining and clarifying the international accounting standards. The majority of the amendments are clarifications or corrections of existing International Financial Reporting Standards (IFRS) or amendments consequential to changes previously made to IFRS. Three amendments (two amendments to IFRS 1 and one amendment to IAS 34) involve changes to the existing requirements or additional guidance on the implementation of those requirements.

| (3) | The consultation with the Technical Expert Group (TEG) of the European Financial Reporting Advisory Group (EFRAG) confirms that the Improvements meet the technical criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. In accordance with Commission Decision 2006/505/EC of 14 July 2006 setting up a Standards Advice Review Group to advise the Commission on the objectivity and neutrality of the European Financial Reporting Advisory Group's (EFRAG's) opinions (3), the Standards Advice Review Group considered EFRAG's opinion on endorsement and advised the Commission that it is well-balanced and objective. |
| --- | --- |

(3)

The consultation with the Technical Expert Group (TEG) of the European Financial Reporting Advisory Group (EFRAG) confirms that the Improvements meet the technical criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. In accordance with Commission Decision 2006/505/EC of 14 July 2006 setting up a Standards Advice Review Group to advise the Commission on the objectivity and neutrality of the European Financial Reporting Advisory Group's (EFRAG's) opinions (3), the Standards Advice Review Group considered EFRAG's opinion on endorsement and advised the Commission that it is well-balanced and objective.

| (4) | Regulation (EC) No 1126/2008 should therefore be amended accordingly. |
| --- | --- |

(4)

Regulation (EC) No 1126/2008 should therefore be amended accordingly.

| (5) | The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee, |
| --- | --- |

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee,

HAS ADOPTED THIS REGULATION:

Article 1

The Annex to Regulation (EC) No 1126/2008 is amended as follows:

| 1. | International Financial Reporting Standard (IFRS) 1 is amended as set out in the Annex to this Regulation; |
| --- | --- |

1.

International Financial Reporting Standard (IFRS) 1 is amended as set out in the Annex to this Regulation;

| 2. | IFRS 7 is amended as set out in the Annex to this Regulation; |
| --- | --- |

2.

IFRS 7 is amended as set out in the Annex to this Regulation;

| 3. | IFRS 3 is amended as set out in the Annex to this Regulation; |
| --- | --- |

3.

IFRS 3 is amended as set out in the Annex to this Regulation;

| 4. | International Accounting Standard (IAS) 1 is amended as set out in the Annex to this Regulation; |
| --- | --- |

4.

International Accounting Standard (IAS) 1 is amended as set out in the Annex to this Regulation;

| 5. | IAS 34 is amended as set out in the Annex to this Regulation; |
| --- | --- |

5.

IAS 34 is amended as set out in the Annex to this Regulation;

| 6. | International Financial Reporting Interpretations Committee's (IFRIC) Interpretation 13 is amended as set out in the Annex to this Regulation; |
| --- | --- |

6.

International Financial Reporting Interpretations Committee's (IFRIC) Interpretation 13 is amended as set out in the Annex to this Regulation;

| 7. | IFRS 7, IAS 32 and IAS 39 are amended in accordance with the amendments to IFRS 3 as set out in the Annex to this Regulation; |
| --- | --- |

7.

IFRS 7, IAS 32 and IAS 39 are amended in accordance with the amendments to IFRS 3 as set out in the Annex to this Regulation;

| 8. | IAS 21, IAS 28 and IAS 31 are amended in accordance with IAS 27as set out in the Annex to this Regulation. |
| --- | --- |

8.

IAS 21, IAS 28 and IAS 31 are amended in accordance with IAS 27as set out in the Annex to this Regulation.

Article 2

Each company shall apply the amendments referred to in points (3), (7) and (8) of Article 1, at the latest, as from the commencement date of its first financial year starting after 30 June 2010.

Each company shall apply the amendments referred to in points (1), (2), (4), (5) and (6) of Article 1, at the latest, as from the commencement date of its first financial year starting after 31 December 2010.

Article 3

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

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

Done at Brussels, 18 February 2011.

For the Commission

The President

José Manuel BARROSO

---

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

1

(2)  
  OJ L 320, 29.11.2008, p. 1.

2

(3)  
  OJ L 199, 21.7.2006, p. 33.

3

---

ANNEX

INTERNATIONAL ACCOUNTING STANDARDS

Improvements to International Financial Reporting Standards

‘
  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
  ’

Improvements to IFRSs

Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards

Paragraphs 27 and 32 are amended. Paragraph 27A, a heading and paragraphs 31B and 39E are added.

PRESENTATION AND DISCLOSURE

| 27 | IAS 8 does not apply to the changes in accounting policies an entity makes when it adopts IFRSs or to changes in those policies until after it presents its first IFRS financial statements. Therefore, IAS 8’s requirements about changes in accounting policies do not apply in an entity’s first IFRS financial statements. |
| --- | --- |

27

| 27A | If during the period covered by its first IFRS financial statements an entity changes its accounting policies or its use of the exemptions contained in this IFRS, it shall explain the changes between its first IFRS interim financial report and its first IFRS financial statements, in accordance with paragraph 23, and it shall update the reconciliations required by paragraph 24(a) and (b). |
| --- | --- |

27A

Use of deemed cost for operations subject to rate regulation

| 31B | If an entity uses the exemption in paragraph D8B for operations subject to rate regulation, it shall disclose that fact and the basis on which carrying amounts were determined under previous GAAP. |
| --- | --- |

31B

Interim financial reports

| 32 | To comply with paragraph 23, if an entity presents an interim financial report in accordance with IAS 34 for part of the period covered by its first IFRS financial statements, the entity shall satisfy the following requirements in addition to the requirements of IAS 34:






  (a) | Each such interim financial report shall, if the entity presented an interim financial report for the comparable interim period of the immediately preceding financial year, include:






  (i) | a reconciliation of its equity in accordance with previous GAAP at the end of that comparable interim period to its equity under IFRSs at that date; and |
| --- | --- | --- | --- |

32

(a)

Each such interim financial report shall, if the entity presented an interim financial report for the comparable interim period of the immediately preceding financial year, include:

(i)

a reconciliation of its equity in accordance with previous GAAP at the end of that comparable interim period to its equity under IFRSs at that date; and

| (ii) | a reconciliation to its total comprehensive income in accordance with IFRSs for that comparable interim period (current and year to date). The starting point for that reconciliation shall be total comprehensive income in accordance with previous GAAP for that period or, if an entity did not report such a total, profit or loss in accordance with previous GAAP. |
| --- | --- |

(ii)

a reconciliation to its total comprehensive income in accordance with IFRSs for that comparable interim period (current and year to date). The starting point for that reconciliation shall be total comprehensive income in accordance with previous GAAP for that period or, if an entity did not report such a total, profit or loss in accordance with previous GAAP.

| (b) | In addition to the reconciliations required by (a), an entity’s first interim financial report in accordance with IAS 34 for part of the period covered by its first IFRS financial statements shall include the reconciliations described in paragraph 24(a) and (b) (supplemented by the details required by paragraphs 25 and 26) or a cross-reference to another published document that includes these reconciliations. |
| --- | --- |

(b)

In addition to the reconciliations required by (a), an entity’s first interim financial report in accordance with IAS 34 for part of the period covered by its first IFRS financial statements shall include the reconciliations described in paragraph 24(a) and (b) (supplemented by the details required by paragraphs 25 and 26) or a cross-reference to another published document that includes these reconciliations.

| (c) | If an entity changes its accounting policies or its use of the exemptions contained in this IFRS, it shall explain the changes in each such interim financial report in accordance with paragraph 23 and update the reconciliations required by (a) and (b). |
| --- | --- |

(c)

If an entity changes its accounting policies or its use of the exemptions contained in this IFRS, it shall explain the changes in each such interim financial report in accordance with paragraph 23 and update the reconciliations required by (a) and (b).

EFFECTIVE DATE

| 39E | Improvements to IFRSs issued in May 2010 added paragraphs 27A, 31B and D8B and amended paragraphs 27, 32, D1(c) and D8. An entity shall apply those amendments for annual periods beginning on or after 1 January 2011. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact. Entities that adopted IFRSs in periods before the effective date of IFRS 1 or applied IFRS 1 in a previous period are permitted to apply the amendment to paragraph D8 retrospectively in the first annual period after the amendment is effective. An entity applying paragraph D8 retrospectively shall disclose that fact. |
| --- | --- |

39E

Amendment to Appendix D of IFRS 1 First-time Adoption of International Financial Reporting Standards

Paragraphs D1(c) and D8 are amended and paragraph D8B is added.

| D1 | An entity may elect to use one or more of the following exemptions:
  ...






  (c) | deemed cost (paragraphs D5–D8 B); |
| --- | --- | --- |

D1

...

(c)

deemed cost (paragraphs D5–D8 B);

...

Deemed cost

| D8 | A first-time adopter may have established a deemed cost in accordance with previous GAAP for some or all of its assets and liabilities by measuring them at their fair value at one particular date because of an event such as a privatisation or initial public offering.






  (a) | If the measurement date is at or before the date of transition to IFRSs, the entity may use such event-driven fair value measurements as deemed cost for IFRSs at the date of that measurement. |
| --- | --- | --- |

D8

(a)

If the measurement date is at or before the date of transition to IFRSs, the entity may use such event-driven fair value measurements as deemed cost for IFRSs at the date of that measurement.

| (b) | If the measurement date is after the date of transition to IFRSs, but during the period covered by the first IFRS financial statements, the event-driven fair value measurements may be used as deemed cost when the event occurs. An entity shall recognise the resulting adjustments directly in retained earnings (or if appropriate, another category of equity) at the measurement date. At the date of transition to IFRSs, the entity shall either establish the deemed cost by applying the criteria in paragraphs D5–D7 or measure assets and liabilities in accordance with the other requirements in this IFRS. |
| --- | --- |

(b)

If the measurement date is after the date of transition to IFRSs, but during the period covered by the first IFRS financial statements, the event-driven fair value measurements may be used as deemed cost when the event occurs. An entity shall recognise the resulting adjustments directly in retained earnings (or if appropriate, another category of equity) at the measurement date. At the date of transition to IFRSs, the entity shall either establish the deemed cost by applying the criteria in paragraphs D5–D7 or measure assets and liabilities in accordance with the other requirements in this IFRS.

| D8B | Some entities hold items of property, plant and equipment or intangible assets that are used, or were previously used, in operations subject to rate regulation. The carrying amount of such items might include amounts that were determined under previous GAAP but do not qualify for capitalisation in accordance with IFRSs. If this is the case, a first-time adopter may elect to use the previous GAAP carrying amount of such an item at the date of transition to IFRSs as deemed cost. If an entity applies this exemption to an item, it need not apply it to all items. At the date of transition to IFRSs, an entity shall test for impairment in accordance with IAS 36 each item for which this exemption is used. For the purposes of this paragraph, operations are subject to rate regulation if they provide goods or services to customers at prices (ie rates) established by an authorised body empowered to establish rates that bind the customers and that are designed to recover the specific costs the entity incurs in providing the regulated goods or services and to earn a specified return. The specified return could be a minimum or range and need not be a fixed or guaranteed return. |
| --- | --- |

D8B

Amendments to IFRS 3 Business Combinations

Paragraph 19, the heading before paragraph 30 and paragraph 30 are amended. Paragraphs 64B, 64C and 65A–65E are added.

THE ACQUISITION METHOD

Measurement principle

| 19 | For each business combination, the acquirer shall measure at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation at either:






  (a) | fair value; or |
| --- | --- | --- |

19

(a)

fair value; or

| (b) | the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. |
| --- | --- |

(b)

the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets.

All other components of non-controlling interests shall be measured at their acquisition-date fair values, unless another measurement basis is required by IFRSs.

Exceptions to the recognition or measurement principles

Exceptions to the measurement principle

Share-based payment transactions

| 30 | The acquirer shall measure a liability or an equity instrument related to share-based payment transactions of the acquiree or the replacement of an acquiree’s share-based payment transactions with share-based payment transactions of the acquirer in accordance with the method in IFRS 2 Share-based Payment at the acquisition date. (This IFRS refers to the result of that method as the ‘market-based measure’ of the share-based payment transaction.) |
| --- | --- |

30

EFFECTIVE DATE AND TRANSITION

Effective date

| 64B | Improvements to IFRSs issued in May 2010 amended paragraphs 19, 30 and B56 and added paragraphs B62A and B62B. An entity shall apply those amendments for annual periods beginning on or after 1 July 2010. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact. Application should be prospective from the date when the entity first applied this IFRS. |
| --- | --- |

64B

| 64C | Paragraphs 65A–65E were added by Improvements to IFRSs issued in May 2010. An entity shall apply those amendments for annual periods beginning on or after 1 July 2010. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact. The amendments shall be applied to contingent consideration balances arising from business combinations with an acquisition date prior to the application of this IFRS, as issued in 2008. |
| --- | --- |

64C

Transition

| 65A | Contingent consideration balances arising from business combinations whose acquisition dates preceded the date when an entity first applied this IFRS as issued in 2008 shall not be adjusted upon first application of this IFRS. Paragraphs 65B–65E shall be applied in the subsequent accounting for those balances. Paragraphs 65B–65E shall not apply to the accounting for contingent consideration balances arising from business combinations with acquisition dates on or after the date when the entity first applied this IFRS as issued in 2008. In paragraphs 65B–65E business combination refers exclusively to business combinations whose acquisition date preceded the application of this IFRS as issued in 2008. |
| --- | --- |

65A

| 65B | If a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the acquirer shall include the amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably. |
| --- | --- |

65B

| 65C | A business combination agreement may allow for adjustments to the cost of the combination that are contingent on one or more future events. The adjustment might, for example, be contingent on a specified level of profit being maintained or achieved in future periods, or on the market price of the instruments issued being maintained. It is usually possible to estimate the amount of any such adjustment at the time of initially accounting for the combination without impairing the reliability of the information, even though some uncertainty exists. If the future events do not occur or the estimate needs to be revised, the cost of the business combination shall be adjusted accordingly. |
| --- | --- |

65C

| 65D | However, when a business combination agreement provides for such an adjustment, that adjustment is not included in the cost of the combination at the time of initially accounting for the combination if it either is not probable or cannot be measured reliably. If that adjustment subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination. |
| --- | --- |

65D

| 65E | In some circumstances, the acquirer may be required to make a subsequent payment to the seller as compensation for a reduction in the value of the assets given, equity instruments issued or liabilities incurred or assumed by the acquirer in exchange for control of the acquiree. This is the case, for example, when the acquirer guarantees the market price of equity or debt instruments issued as part of the cost of the business combination and is required to issue additional equity or debt instruments to restore the originally determined cost. In such cases, no increase in the cost of the business combination is recognised. In the case of equity instruments, the fair value of the additional payment is offset by an equal reduction in the value attributed to the instruments initially issued. In the case of debt instruments, the additional payment is regarded as a reduction in the premium or an increase in the discount on the initial issue. |
| --- | --- |

65E

Application guidance

In Appendix B, paragraph B56 is amended and a footnote to paragraph B56, a heading after paragraph B62 and paragraphs B62A and B62B are added.

DETERMINING WHAT IS PART OF THE BUSINESS COMBINATION TRANSACTION (APPLICATION OF PARAGRAPHS 51 AND 52)

Acquirer share-based payment awards exchanged for awards held by the acquiree’s employees (application of paragraph 52(b))

| B56 | An acquirer may exchange its share-based payment awards (1) (replacement awards) for awards held by employees of the acquiree. Exchanges of share options or other share-based payment awards in conjunction with a business combination are accounted for as modifications of share-based payment awards in accordance with IFRS 2 Share-based Payment. If the acquirer replaces the acquiree awards, either all or a portion of the market-based measure of the acquirer’s replacement awards shall be included in measuring the consideration transferred in the business combination. Paragraphs B57–B62 provide guidance on how to allocate the market-based measure.
  However, in situations, in which acquiree awards would expire as a consequence of a business combination and if the acquirer replaces those awards when it is not obliged to do so, all of the market-based measure of the replacement awards shall be recognised as remuneration cost in the post-combination financial statements in accordance with IFRS 2. That is to say, none of the market-based measure of those awards shall be included in measuring the consideration transferred in the business combination. The acquirer is obliged to replace the acquiree awards if the acquiree or its employees have the ability to enforce replacement. For example, for the purposes of applying this guidance, the acquirer is obliged to replace the acquiree’s awards if replacement is required by:






  (a) | the terms of the acquisition agreement; |
| --- | --- | --- |

B56

However, in situations, in which acquiree awards would expire as a consequence of a business combination and if the acquirer replaces those awards when it is not obliged to do so, all of the market-based measure of the replacement awards shall be recognised as remuneration cost in the post-combination financial statements in accordance with IFRS 2. That is to say, none of the market-based measure of those awards shall be included in measuring the consideration transferred in the business combination. The acquirer is obliged to replace the acquiree awards if the acquiree or its employees have the ability to enforce replacement. For example, for the purposes of applying this guidance, the acquirer is obliged to replace the acquiree’s awards if replacement is required by:

(a)

the terms of the acquisition agreement;

| (b) | the terms of the acquiree’s awards; or |
| --- | --- |

(b)

the terms of the acquiree’s awards; or

| (c) | applicable laws or regulations. |
| --- | --- |

(c)

applicable laws or regulations.

Equity-settled share-based payment transactions of the acquiree

| B62A | The acquiree may have outstanding share-based payment transactions that the acquirer does not exchange for its share-based payment transactions. If vested, those acquiree share-based payment transactions are part of the non-controlling interest in the acquiree and are measured at their market-based measure. If unvested, they are measured at their market-based measure as if the acquisition date were the grant date in accordance with paragraphs 19 and 30. |
| --- | --- |

B62A

| B62B | The market-based measure of unvested share-based payment transactions is allocated to the non-controlling interest on the basis of the ratio of the portion of the vesting period completed to the greater of the total vesting period or the original vesting period of the share-based payment transaction. The balance is allocated to post-combination service. |
| --- | --- |

B62B

Appendix to amendments to IFRS 3

Amendments to other IFRSs

IFRS 7   
  Financial Instruments: Disclosures

Paragraph 44B is amended and paragraph 44K is added.

EFFECTIVE DATE AND TRANSITION

| 44B | IFRS 3 (as revised in 2008) deleted paragraph 3(c). An entity shall apply that amendment for annual periods beginning on or after 1 July 2009. If an entity applies IFRS 3 (revised 2008) for an earlier period, the amendment shall also be applied for that earlier period. However, the amendment does not apply to contingent consideration that arose from a business combination for which the acquisition date preceded the application of IFRS 3 (revised 2008). Instead, an entity shall account for such consideration in accordance with paragraphs 65A–65E of IFRS 3 (as amended in 2010). |
| --- | --- |

44B

| 44K | Paragraph 44B was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. |
| --- | --- |

44K

IAS 32   
  Financial Instruments: Presentation

Paragraph 97B is amended and paragraph 97G is added.

EFFECTIVE DATE AND TRANSITION

| 97B | IFRS 3 (as revised in 2008) deleted paragraph 4(c). An entity shall apply that amendment for annual periods beginning on or after 1 July 2009. If an entity applies IFRS 3 (revised 2008) for an earlier period, the amendment shall also be applied for that earlier period. However, the amendment does not apply to contingent consideration that arose from a business combination for which the acquisition date preceded the application of IFRS 3 (revised 2008). Instead, an entity shall account for such consideration in accordance with paragraphs 65A–65E of IFRS 3 (as amended in 2010). |
| --- | --- |

97B

| 97G | Paragraph 97B was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. |
| --- | --- |

97G

IAS 39   
  Financial Instruments: Recognition and Measurement

Paragraph 103D is amended and paragraph 103N is added.

EFFECTIVE DATE AND TRANSITION

| 103D | IFRS 3 (as revised in 2008) deleted paragraph 2(f). An entity shall apply that amendment for annual periods beginning on or after 1 July 2009. If an entity applies IFRS 3 (revised 2008) for an earlier period, the amendment shall also be applied for that earlier period. However, the amendment does not apply to contingent consideration that arose from a business combination for which the acquisition date preceded the application of IFRS 3 (revised 2008). Instead, an entity shall account for such consideration in accordance with paragraphs 65A–65E of IFRS 3 (as amended in 2010). |
| --- | --- |

103D

| 103N | Paragraph 103D was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. |
| --- | --- |

103N

Amendments to IFRS 7   
  Financial Instruments: Disclosures

Paragraph 32A is added. Paragraphs 34 and 36–38 are amended. Paragraph 44L is added.

NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS

| 32A | Providing qualitative disclosures in the context of quantitative disclosures enables users to link related disclosures and hence form an overall picture of the nature and extent of risks arising from financial instruments. The interaction between qualitative and quantitative disclosures contributes to disclosure of information in a way that better enables users to evaluate an entity’s exposure to risks. |
| --- | --- |

32A

Quantitative disclosures

| 34 | For each type of risk arising from financial instruments, an entity shall disclose:






  (a) | summary quantitative data about its exposure to that risk at the end of the reporting period. This disclosure shall be based on the information provided internally to key management personnel of the entity (as defined in IAS 24 Related Party Disclosures), for example the entity’s board of directors or chief executive officer. |
| --- | --- | --- |

34

(a)

summary quantitative data about its exposure to that risk at the end of the reporting period. This disclosure shall be based on the information provided internally to key management personnel of the entity (as defined in IAS 24 Related Party Disclosures), for example the entity’s board of directors or chief executive officer.

| (b) | the disclosures required by paragraphs 36–42, to the extent not provided in accordance with (a). |
| --- | --- |

(b)

the disclosures required by paragraphs 36–42, to the extent not provided in accordance with (a).

| (c) | concentrations of risk if not apparent from the disclosures made in accordance with (a) and (b). |
| --- | --- |

(c)

concentrations of risk if not apparent from the disclosures made in accordance with (a) and (b).

Credit risk

| 36 | An entity shall disclose by class of financial instrument:






  (a) | the amount that best represents its maximum exposure to credit risk at the end of the reporting period without taking account of any collateral held or other credit enhancements (eg netting agreements that do not qualify for offset in accordance with IAS 32); this disclosure is not required for financial instruments whose carrying amount best represents the maximum exposure to credit risk; |
| --- | --- | --- |

36

(a)

the amount that best represents its maximum exposure to credit risk at the end of the reporting period without taking account of any collateral held or other credit enhancements (eg netting agreements that do not qualify for offset in accordance with IAS 32); this disclosure is not required for financial instruments whose carrying amount best represents the maximum exposure to credit risk;

| (b) | a description of collateral held as security and of other credit enhancements, and their financial effect (eg a quantification of the extent to which collateral and other credit enhancements mitigate credit risk) in respect of the amount that best represents the maximum exposure to credit risk (whether disclosed in accordance with (a) or represented by the carrying amount of a financial instrument); |
| --- | --- |

(b)

a description of collateral held as security and of other credit enhancements, and their financial effect (eg a quantification of the extent to which collateral and other credit enhancements mitigate credit risk) in respect of the amount that best represents the maximum exposure to credit risk (whether disclosed in accordance with (a) or represented by the carrying amount of a financial instrument);

| (c) | information about the credit quality of financial assets that are neither past due nor impaired. |
| --- | --- |

(c)

information about the credit quality of financial assets that are neither past due nor impaired.

| (d) | [deleted] |
| --- | --- |

(d)

[deleted]

Financial assets that are either past due or impaired

| 37 | An entity shall disclose by class of financial asset:






  (a) | an analysis of the age of financial assets that are past due as at the end of the reporting period but not impaired; and |
| --- | --- | --- |

37

(a)

an analysis of the age of financial assets that are past due as at the end of the reporting period but not impaired; and

| (b) | an analysis of financial assets that are individually determined to be impaired as at the end of the reporting period, including the factors the entity considered in determining that they are impaired. |
| --- | --- |

(b)

an analysis of financial assets that are individually determined to be impaired as at the end of the reporting period, including the factors the entity considered in determining that they are impaired.

| (c) | [deleted] |
| --- | --- |

(c)

[deleted]

Collateral and other credit enhancements obtained

| 38 | When an entity obtains financial or non-financial assets during the period by taking possession of collateral it holds as security or calling on other credit enhancements (eg guarantees), and such assets meet the recognition criteria in other IFRSs, an entity shall disclose for such assets held at the reporting date:






  (a) | the nature and carrying amount of the assets; and |
| --- | --- | --- |

38

(a)

the nature and carrying amount of the assets; and

| (b) | when the assets are not readily convertible into cash, its policies for disposing of such assets or for using them in its operations. |
| --- | --- |

(b)

when the assets are not readily convertible into cash, its policies for disposing of such assets or for using them in its operations.

EFFECTIVE DATE AND TRANSITION

| 44L | Improvements to IFRSs issued in May 2010 added paragraph 32A and amended paragraphs 34 and 36–38. An entity shall apply those amendments for annual periods beginning on or after 1 January 2011. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact. |
| --- | --- |

44L

Amendments to IAS 1   
  Presentation of Financial Statements

Before paragraph 106 a heading is added. Paragraph 106 is amended. After paragraph 106 a heading and paragraph 106A are added. Paragraph 107 is amended. Paragraph 139F is added.

STRUCTURE AND CONTENT

Statement of changes in equity

Information to be presented in the statement of changes in equity

| 106 | An entity shall present a statement of changes in equity as required by paragraph 10. The statement of changes in equity includes the following information:








  (a) | total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interests; |
| --- | --- | --- |

106

(a)

total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interests;

| (b) | for each component of equity, the effects of retrospective application or retrospective restatement recognised in accordance with IAS 8; and |
| --- | --- |

(b)

for each component of equity, the effects of retrospective application or retrospective restatement recognised in accordance with IAS 8; and

| (c) | [deleted] |
| --- | --- |

(c)

[deleted]

| (d) | for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately disclosing changes resulting from:








  (i) | profit or loss; |
| --- | --- | --- |

(d)

for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately disclosing changes resulting from:

(i)

profit or loss;

| (ii) | other comprehensive income; and |
| --- | --- |

(ii)

other comprehensive income; and

| (iii) | transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners and changes in ownership interests in subsidiaries that do not result in a loss of control. |
| --- | --- |

(iii)

transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners and changes in ownership interests in subsidiaries that do not result in a loss of control.

Information to be presented in the statement of changes in equity or in the notes

| 106A | For each component of equity an entity shall present, either in the statement of changes in equity or in the notes, an analysis of other comprehensive income by item (see paragraph 106(d)(ii)). |
| --- | --- |

106A

| 107 | An entity shall present, either in the statement of changes in equity or in the notes, the amounts of dividends recognised as distributions to owners during the period, and the related amount of dividends per share. |
| --- | --- |

107

TRANSITION AND EFFECTIVE DATE

| 139F | Paragraphs 106 and 107 were amended and paragraph 106A was added by Improvements to IFRSs issued in May 2010. An entity shall apply those amendments for annual periods beginning on or after 1 January 2011. Earlier application is permitted. |
| --- | --- |

139F

Transition requirements for amendments arising as a result of IAS 27   
  Consolidated and Separate Financial Statements

Amendments to IFRSs

IAS 21   
  The Effects of Changes in Foreign Exchange Rates

Paragraph 60B is amended and paragraph 60D is added.

EFFECTIVE DATE AND TRANSITION

| 60B | IAS 27 (as amended in 2008) added paragraphs 48A–48D and amended paragraph 49. An entity shall apply those amendments prospectively for annual periods beginning on or after 1 July 2009. If an entity applies IAS 27 (amended 2008) for an earlier period, the amendments shall be applied for that earlier period. |
| --- | --- |

60B

| 60D | Paragraph 60B was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. |
| --- | --- |

60D

IAS 28   
  Investments in Associates

Paragraph 41B is amended and paragraph 41E is added.

EFFECTIVE DATE AND TRANSITION

| 41B | IAS 27 (as amended in 2008) amended paragraphs 18, 19 and 35 and added paragraph 19A. An entity shall apply the amendment to paragraph 35 retrospectively and the amendments to paragraphs 18 and 19 and paragraph 19A prospectively for annual periods beginning on or after 1 July 2009. If an entity applies IAS 27 (amended 2008) for an earlier period, the amendments shall be applied for that earlier period. |
| --- | --- |

41B

| 41E | Paragraph 41B was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. If an entity applies the amendment before 1 July 2010 it shall disclose that fact. |
| --- | --- |

41E

IAS 31   
  Interests in Joint Ventures

Paragraph 58A is amended and paragraph 58D is added.

EFFECTIVE DATE AND TRANSITION

| 58A | IAS 27 (as amended in 2008) amended paragraphs 45 and 46 and added paragraphs 45A and 45B. An entity shall apply the amendment to paragraph 46 retrospectively and the amendments to paragraph 45 and paragraphs 45A and 45B prospectively for annual periods beginning on or after 1 July 2009. If an entity applies IAS 27 (amended 2008) for an earlier period, the amendments shall be applied for that earlier period. |
| --- | --- |

58A

| 58D | Paragraph 58A was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. If an entity applies the amendment before 1 July 2010 it shall disclose that fact. |
| --- | --- |

58D

Amendments to IAS 34   
  Interim Financial Reporting

CONTENT OF AN INTERIM FINANCIAL REPORT

Significant events and transactions

| 15 | An entity shall include in its interim financial report an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the entity since the end of the last annual reporting period. Information disclosed in relation to those events and transactions shall update the relevant information presented in the most recent annual financial report. |
| --- | --- |

15

| 15A | A user of an entity’s interim financial report will have access to the most recent annual financial report of that entity. Therefore, it is unnecessary for the notes to an interim financial report to provide relatively insignificant updates to the information that was reported in the notes in the most recent annual financial report. |
| --- | --- |

15A

| 15B | The following is a list of events and transactions for which disclosures would be required if they are significant: the list is not exhaustive.






  (a) | the write-down of inventories to net realisable value and the reversal of such a write-down; |
| --- | --- | --- |

15B

(a)

the write-down of inventories to net realisable value and the reversal of such a write-down;

| (b) | recognition of a loss from the impairment of financial assets, property, plant and equipment, intangible assets, or other assets, and the reversal of such an impairment loss; |
| --- | --- |

(b)

recognition of a loss from the impairment of financial assets, property, plant and equipment, intangible assets, or other assets, and the reversal of such an impairment loss;

| (c) | the reversal of any provisions for the costs of restructuring; |
| --- | --- |

(c)

the reversal of any provisions for the costs of restructuring;

| (d) | acquisitions and disposals of items of property, plant and equipment; |
| --- | --- |

(d)

acquisitions and disposals of items of property, plant and equipment;

| (e) | commitments for the purchase of property, plant and equipment; |
| --- | --- |

(e)

commitments for the purchase of property, plant and equipment;

| (f) | litigation settlements; |
| --- | --- |

(f)

litigation settlements;

| (g) | corrections of prior period errors; |
| --- | --- |

(g)

corrections of prior period errors;

| (h) | changes in the business or economic circumstances that affect the fair value of the entity’s financial assets and financial liabilities, whether those assets or liabilities are recognised at fair value or amortised cost; |
| --- | --- |

(h)

changes in the business or economic circumstances that affect the fair value of the entity’s financial assets and financial liabilities, whether those assets or liabilities are recognised at fair value or amortised cost;

| (i) | any loan default or breach of a loan agreement that has not been remedied on or before the end of the reporting period; |
| --- | --- |

(i)

any loan default or breach of a loan agreement that has not been remedied on or before the end of the reporting period;

| (j) | related party transactions; |
| --- | --- |

(j)

related party transactions;

| (k) | transfers between levels of the fair value hierarchy used in measuring the fair value of financial instruments; |
| --- | --- |

(k)

transfers between levels of the fair value hierarchy used in measuring the fair value of financial instruments;

| (l) | changes in the classification of financial assets as a result of a change in the purpose or use of those assets; and |
| --- | --- |

(l)

changes in the classification of financial assets as a result of a change in the purpose or use of those assets; and

| (m) | changes in contingent liabilities or contingent assets. |
| --- | --- |

(m)

changes in contingent liabilities or contingent assets.

| 15C | Individual IFRSs provide guidance regarding disclosure requirements for many of the items listed in paragraph 15B. When an event or transaction is significant to an understanding of the changes in an entity’s financial position or performance since the last annual reporting period, its interim financial report should provide an explanation of and an update to the relevant information included in the financial statements of the last annual reporting period. |
| --- | --- |

15C

| 16–18 | [Deleted] |
| --- | --- |

16–18

Other disclosures

| 16A | In addition to disclosing significant events and transactions in accordance with paragraphs 15–15C, an entity shall include the following information, in the notes to its interim financial statements, if not disclosed elsewhere in the interim financial report. The information shall normally be reported on a financial year-to-date basis.








  (a) | a statement that the same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements or, if those policies or methods have been changed, a description of the nature and effect of the change. |
| --- | --- | --- |

16A

(a)

a statement that the same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements or, if those policies or methods have been changed, a description of the nature and effect of the change.

| (b) | explanatory comments about the seasonality or cyclicality of interim operations. |
| --- | --- |

(b)

explanatory comments about the seasonality or cyclicality of interim operations.

| (c) | the nature and amount of items affecting assets, liabilities, equity, net income or cash flows that are unusual because of their nature, size or incidence. |
| --- | --- |

(c)

the nature and amount of items affecting assets, liabilities, equity, net income or cash flows that are unusual because of their nature, size or incidence.

| (d) | the nature and amount of changes in estimates of amounts reported in prior interim periods of the current financial year or changes in estimates of amounts reported in prior financial years. |
| --- | --- |

(d)

the nature and amount of changes in estimates of amounts reported in prior interim periods of the current financial year or changes in estimates of amounts reported in prior financial years.

| (e) | issues, repurchases and repayments of debt and equity securities. |
| --- | --- |

(e)

issues, repurchases and repayments of debt and equity securities.

| (f) | dividends paid (aggregate or per share) separately for ordinary shares and other shares. |
| --- | --- |

(f)

dividends paid (aggregate or per share) separately for ordinary shares and other shares.

| (g) | the following segment information (disclosure of segment information is required in an entity’s interim financial report only if IFRS 8 Operating Segments requires that entity to disclose segment information in its annual financial statements):








  (i) | revenues from external customers, if included in the measure of segment profit or loss reviewed by the chief operating decision maker or otherwise regularly provided to the chief operating decision maker. |
| --- | --- | --- |

(g)

the following segment information (disclosure of segment information is required in an entity’s interim financial report only if IFRS 8 Operating Segments requires that entity to disclose segment information in its annual financial statements):

(i)

revenues from external customers, if included in the measure of segment profit or loss reviewed by the chief operating decision maker or otherwise regularly provided to the chief operating decision maker.

| (ii) | intersegment revenues, if included in the measure of segment profit or loss reviewed by the chief operating decision maker or otherwise regularly provided to the chief operating decision maker. |
| --- | --- |

(ii)

intersegment revenues, if included in the measure of segment profit or loss reviewed by the chief operating decision maker or otherwise regularly provided to the chief operating decision maker.

| (iii) | a measure of segment profit or loss. |
| --- | --- |

(iii)

a measure of segment profit or loss.

| (iv) | total assets for which there has been a material change from the amount disclosed in the last annual financial statements. |
| --- | --- |

(iv)

total assets for which there has been a material change from the amount disclosed in the last annual financial statements.

| (v) | a description of differences from the last annual financial statements in the basis of segmentation or in the basis of measurement of segment profit or loss. |
| --- | --- |

(v)

a description of differences from the last annual financial statements in the basis of segmentation or in the basis of measurement of segment profit or loss.

| (vi) | a reconciliation of the total of the reportable segments’ measures of profit or loss to the entity’s profit or loss before tax expense (tax income) and discontinued operations. However, if an entity allocates to reportable segments items such as tax expense (tax income), the entity may reconcile the total of the segments’ measures of profit or loss to profit or loss after those items. Material reconciling items shall be separately identified and described in that reconciliation. |
| --- | --- |

(vi)

a reconciliation of the total of the reportable segments’ measures of profit or loss to the entity’s profit or loss before tax expense (tax income) and discontinued operations. However, if an entity allocates to reportable segments items such as tax expense (tax income), the entity may reconcile the total of the segments’ measures of profit or loss to profit or loss after those items. Material reconciling items shall be separately identified and described in that reconciliation.

| (h) | Events after the interim period that have not been reflected in the financial statements for the interim period. |
| --- | --- |

(h)

Events after the interim period that have not been reflected in the financial statements for the interim period.

| (i) | the effect of changes in the composition of the entity during the interim period, including business combinations, obtaining or losing control of subsidiaries and long-term investments, restructurings, and discontinued operations.In the case of business combinations, the entity shall disclose the information required by IFRS 3 Business Combinations. |
| --- | --- |

(i)

the effect of changes in the composition of the entity during the interim period, including business combinations, obtaining or losing control of subsidiaries and long-term investments, restructurings, and discontinued operations.In the case of business combinations, the entity shall disclose the information required by IFRS 3 Business Combinations.

| (j) | [deleted] |
| --- | --- |

(j)

[deleted]

EFFECTIVE DATE

| 49 | Paragraph 15 was amended, paragraphs 15A–15C and 16A were added and paragraphs 16–18 were deleted by Improvements to IFRSs issued in May 2010. An entity shall apply those amendments for annual periods beginning on or after 1 January 2011. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact. |
| --- | --- |

49

Amendment to IFRIC 13   
  Customer Loyalty Programmes

Paragraph 10A is added.

EFFECTIVE DATE AND TRANSITION

| 10A | Paragraph AG2 was amended by Improvements to IFRSs issued in May 2010. An entity shall apply that amendment for annual periods beginning on or after 1 January 2011. Earlier application is permitted. If an entity applies the amendment for an earlier period it shall disclose that fact. |
| --- | --- |

10A

Appendix

Application guidance

Paragraph AG2 is amended.

| AG2 | An entity may estimate the fair value of award credits by reference to the fair value of the awards for which they could be redeemed. The fair value of the award credits takes into account, as appropriate:






  (a) | the amount of the discounts or incentives that would otherwise be offered to customers who have not earned award credits from an initial sale; and |
| --- | --- | --- |

AG2

(a)

the amount of the discounts or incentives that would otherwise be offered to customers who have not earned award credits from an initial sale; and

| (b) | the proportion of award credits that are not expected to be redeemed by customers. |
| --- | --- |

(b)

the proportion of award credits that are not expected to be redeemed by customers.

If customers can choose from a range of different awards, the fair value of the award credits will reflect the fair values of the range of available awards, weighted in proportion to the frequency with which each award is expected to be selected.

---

(1)  In paragraphs B56–B62 the term ‘share-based payment awards’ refers to vested or unvested share-based payment transactions.

1

---