# Commission Regulation (EU) No 1174/2013Show full title

Commission Regulation (EU) No 1174/2013 of 20 November 2013 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            International Financial Reporting Standards 10 and 12 and International Accounting Standard 27 (Text with EEA relevance)         

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U.K.

# Commission Regulation (EU) No 1174/2013                     

# of 20 November 2013

# 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 International Financial Reporting Standards 10 and 12                        and International Accounting Standard 27                     

# (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 the international accounting standards(1), and in particular Article 3(1) thereof,                        

Whereas:

(1)By Commission Regulation (EC) No 1126/2008(2) certain international standards and interpretations that were in existence at 15 October 2008 were adopted.

(2)In October 2012, the International Accounting Standards Board (IASB) published amendments to International Financial Reporting                              Standard (IFRS) 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and International                              Accounting Standard (IAS) 27 Separate Financial Statements. IFRS 10 has been amended in order to better reflect the business                              model of investment entities. It requires that investment entities measure their subsidiaries at fair value through profit                              or loss account rather than consolidate them. IFRS 12 has been amended in order to require specific disclosure about such                              subsidiaries of investment entities. The amendments to IAS 27 also removed the option for investment entities to measure investments                              in certain subsidiaries either at cost or at fair value in their separate financial statements. Amendments to IFRS 10, IFRS                              12 and IAS 27 imply by way of consequence amendments to IFRS 1, IFRS 3, IFRS 7, IAS 7, IAS 12, IAS 24, IAS 32, IAS 34 and                              IAS 39 in order to ensure consistency between international accounting standards.

(3)The amendments to IFRS 10, IAS 27 and certain consequential amendments to other standards contain references to IFRS 9 Financial                              Instruments that at present cannot be applied as IFRS 9 has not been adopted by the Union. Therefore, any reference to IFRS                              9 as laid down in the Annex to this Regulation should be read as a reference to IAS 39.

(4)The consultation with the Technical Expert Group of the European Financial Reporting Advisory Group confirms that the amendments                              to IFRS 10, IFRS 12 and IAS 27 meet the technical criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.

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

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

HAS ADOPTED THIS REGULATION:

# Article 1U.K.

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

(a)International Financial Reporting Standard (IFRS) 10 *Consolidated Financial Statements* is amended as set out in the Annex to this Regulation;                  

(b)IFRS 12 *Disclosure of Interests in Other Entities* is amended as set out in the Annex to this Regulation;                  

(c)International Accounting Standard (IAS) 27 *Separate Financial Statements* is amended as set out in the Annex to this Regulation;                  

(d)IFRS 1 *First-time Adoption of International Financial Reporting Standards*, IFRS 3 *Business Combinations*, IFRS 7 *Financial Instruments: Disclosures*, IAS 7 *Statement of Cash Flows*, IAS 12 *Income Taxes*, IAS 24 *Related Party Disclosures*, IAS 32 *Financial Instruments: Presentation*, IAS 34 *Interim Financial Reporting* and IAS 39 *Financial Instruments: Recognition and Measurement* are amended in accordance with the amendments to IFRS 10 as set out in the Annex to this Regulation.                  

2.Any reference to IFRS 9 *Financial Instruments* in the amendments referred to in paragraph 1 shall be read as a reference to IAS 39.                  

# Article 2U.K.

Each company shall apply the amendments referred to in Article 1(1), at the latest, as from the commencement date of its first                     financial year starting on or after 1 January 2014.                  

# Article 3U.K.

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, 20 November 2013.

*For the Commission*                            

*The President*                            

José Manuel Barroso                            

## ANNEXU.K.**INTERNATIONAL ACCOUNTING 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"**U.K.                  

### **Investment Entities**(Amendments to IFRS 10, IFRS 12 and IAS 27)U.K.

#### **Amendments to IFRS 10 *Consolidated Financial Statements***U.K.

Paragraphs 2 and 4 are amended.

##### 2To meet the objective in paragraph 1, this IFRS:U.K.

...

sets out how to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate                              the investee;                           

sets out the accounting requirements for the preparation of consolidated financial statements; and

defines an investment entity and sets out an exception to consolidating particular subsidiaries of an investment entity.

##### 3...U.K.

##### 4An entity that is a parent shall present consolidated financial statements. This IFRS applies to all entities, except as follows:U.K.

...

an investment entity need not present consolidated financial statements if it is required, in accordance with paragraph 31                              of this IFRS, to measure all of its subsidiaries at fair value through profit or loss.                           

After paragraph 26, headings and paragraphs 27–33 are added.

##### DETERMINING WHETHER AN ENTITY IS AN INVESTMENT ENTITYU.K.

###### **27****A parent shall determine whether it is an investment entity. An investment entity is an entity that:**U.K.

**obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services;**                            

**commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment                                 income, or both; and**                            

**measures and evaluates the performance of substantially all of its investments on a fair value basis.**                            

**Paragraphs B85A–B85M provide related application guidance.**                   

###### 28In assessing whether it meets the definition described in paragraph 27, an entity shall consider whether it has the following                        typical characteristics of an investment entity:U.K.

it has more than one investment (see paragraphs B85O–B85P);

it has more than one investor (see paragraphs B85Q–B85S);

it has investors that are not related parties of the entity (see paragraphs B85T–B85U); and

it has ownership interests in the form of equity or similar interests (see paragraphs B85V–B85W).

The absence of any of these typical characteristics does not necessarily disqualify an entity from being classified as an                     investment entity. An investment entity that does not have all of these typical characteristics provides additional disclosure                     required by paragraph 9A of IFRS 12 *Disclosure of Interests in Other Entities*.                  

###### 29If facts and circumstances indicate that there are changes to one or more of the three elements that make up the definition                        of an investment entity, as described in paragraph 27, or the typical characteristics of an investment entity, as described                        in paragraph 28, a parent shall reassess whether it is an investment entity.U.K.

###### 30A parent that either ceases to be an investment entity or becomes an investment entity shall account for the change in its                        status prospectively from the date at which the change in status occurred (see paragraphs B100–B101).U.K.

##### INVESTMENT ENTITIES: EXCEPTION TO CONSOLIDATIONU.K.

###### **31****Except as described in paragraph 32, an investment entity shall not consolidate its subsidiaries or apply IFRS 3 when it obtains                           control of another entity. Instead, an investment entity shall measure an investment in a subsidiary at fair value through                           profit or loss in accordance with IFRS 9(3).**U.K.

###### 32Notwithstanding the requirement in paragraph 31, if an investment entity has a subsidiary that provides services that relate                        to the investment entity’s investment activities (see paragraphs B85C–B85E), it shall consolidate that subsidiary in accordance                        with paragraphs 19–26 of this IFRS and apply the requirements of IFRS 3 to the acquisition of any such subsidiary.U.K.

###### 33A parent of an investment entity shall consolidate all entities that it controls, including those controlled through an investment                        entity subsidiary, unless the parent itself is an investment entity.U.K.

In Appendix A, a new definition is added.

...

An entity that:

obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services;

commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment                                 income, or both; and                              

measures and evaluates the performance of substantially all of its investments on a fair value basis.

In Appendix B, headings and paragraphs B85A–B85W are added.

##### DETERMINING WHETHER AN ENTITY IS AN INVESTMENT ENTITYU.K.

###### B85AAn entity shall consider all facts and circumstances when assessing whether it is an investment entity, including its purpose                        and design. An entity that possesses the three elements of the definition of an investment entity set out in paragraph 27                        is an investment entity. Paragraphs B85B–B85M describe the elements of the definition in more detail.U.K.

###### **Business purpose**U.K.

###### B85BThe definition of an investment entity requires that the purpose of the entity is to invest solely for capital appreciation,                        investment income (such as dividends, interest or rental income), or both. Documents that indicate what the entity’s investment                        objectives are, such as the entity’s offering memorandum, publications distributed by the entity and other corporate or partnership                        documents, will typically provide evidence of an investment entity’s business purpose. Further evidence may include the manner                        in which the entity presents itself to other parties (such as potential investors or potential investees); for example, an                        entity may present its business as providing medium-term investment for capital appreciation. In contrast, an entity that                        presents itself as an investor whose objective is to jointly develop, produce or market products with its investees has a                        business purpose that is inconsistent with the business purpose of an investment entity, because the entity will earn returns                        from the development, production or marketing activity as well as from its investments (see paragraph B85I).U.K.

###### B85CAn investment entity may provide investment-related services (eg investment advisory services, investment management, investment                        support and administrative services), either directly or through a subsidiary, to third parties as well as to its investors,                        even if those activities are substantial to the entity.U.K.

###### B85DAn investment entity may also participate in the following investment-related activities, either directly or through a subsidiary,                        if these activities are undertaken to maximise the investment return (capital appreciation or investment income) from its                        investees and do not represent a separate substantial business activity or a separate substantial source of income to the                        investment entity:U.K.

providing management services and strategic advice to an investee; and

providing financial support to an investee, such as a loan, capital commitment or guarantee.

###### B85EIf an investment entity has a subsidiary that provides investment-related services or activities, such as those described                        in paragraphs B85C–B85D, to the entity or other parties, it shall consolidate that subsidiary in accordance with paragraph                        32.U.K.

###### *Exit strategies*U.K.

###### B85FAn entity’s investment plans also provide evidence of its business purpose. One feature that differentiates an investment                        entity from other entities is that an investment entity does not plan to hold its investments indefinitely; it holds them                        for a limited period. Because equity investments and non-financial asset investments have the potential to be held indefinitely,                        an investment entity shall have an exit strategy documenting how the entity plans to realise capital appreciation from substantially                        all of its equity investments and non-financial asset investments. An investment entity shall also have an exit strategy for                        any debt instruments that have the potential to be held indefinitely, for example perpetual debt investments. The entity need                        not document specific exit strategies for each individual investment but shall identify different potential strategies for                        different types or portfolios of investments, including a substantive time frame for exiting the investments. Exit mechanisms                        that are only put in place for default events, such as a breach of contract or non-performance, are not considered exit strategies                        for the purpose of this assessment.U.K.

###### B85GExit strategies can vary by type of investment. For investments in private equity securities, examples of exit strategies                        include an initial public offering, a private placement, a trade sale of a business, distributions (to investors) of ownership                        interests in investees and sales of assets (including the sale of an investee’s assets followed by a liquidation of the investee).                        For equity investments that are traded in a public market, examples of exit strategies include selling the investment in a                        private placement or in a public market. For real estate investments, an example of an exit strategy includes the sale of                        the real estate through specialised property dealers or the open market.U.K.

###### B85HAn investment entity may have an investment in another investment entity that is formed in connection with the entity for                        legal, regulatory, tax or similar business reasons. In this case, the investment entity investor need not have an exit strategy                        for that investment, provided that the investment entity investee has appropriate exit strategies for its investments.U.K.

###### *Earnings from investments*U.K.

###### B85IAn entity is not investing solely for capital appreciation, investment income, or both, if the entity or another member of                        the group containing the entity (ie the group that is controlled by the investment entity’s ultimate parent) obtains, or has                        the objective of obtaining, other benefits from the entity’s investments that are not available to other parties that are                        not related to the investee. Such benefits include:U.K.

the acquisition, use, exchange or exploitation of the processes, assets or technology of an investee. This would include the                              entity or another group member having disproportionate, or exclusive, rights to acquire assets, technology, products or services                              of any investee; for example, by holding an option to purchase an asset from an investee if the asset’s development is deemed                              successful;                           

joint arrangements (as defined in IFRS 11) or other agreements between the entity or another group member and an investee                              to develop, produce, market or provide products or services;                           

financial guarantees or assets provided by an investee to serve as collateral for borrowing arrangements of the entity or                              another group member (however, an investment entity would still be able to use an investment in an investee as collateral                              for any of its borrowings);                           

an option held by a related party of the entity to purchase, from that entity or another group member, an ownership interest                              in an investee of the entity;                           

except as described in paragraph B85J, transactions between the entity or another group member and an investee that:

are on terms that are unavailable to entities that are not related parties of either the entity, another group member or the                                       investee;                                    

are not at fair value; or

represent a substantial portion of the investee’s or the entity’s business activity, including business activities of other                                       group entities.                                    

###### B85JAn investment entity may have a strategy to invest in more than one investee in the same industry, market or geographical                        area in order to benefit from synergies that increase the capital appreciation and investment income from those investees.                        Notwithstanding paragraph B85I(e), an entity is not disqualified from being classified as an investment entity merely because                        such investees trade with each other.U.K.

###### **Fair value measurement**U.K.

###### B85KAn essential element of the definition of an investment entity is that it measures and evaluates the performance of substantially                        all of its investments on a fair value basis, because using fair value results in more relevant information than, for example,                        consolidating its subsidiaries or using the equity method for its interests in associates or joint ventures. In order to demonstrate                        that it meets this element of the definition, an investment entity:U.K.

provides investors with fair value information and measures substantially all of its investments at fair value in its financial                              statements whenever fair value is required or permitted in accordance with IFRSs; and                           

reports fair value information internally to the entity’s key management personnel (as defined in IAS 24), who use fair value                              as the primary measurement attribute to evaluate the performance of substantially all of its investments and to make investment                              decisions.                           

###### B85LIn order to meet the requirement in B85K(a), an investment entity would:U.K.

elect to account for any investment property using the fair value model in IAS 40 *Investment Property*;                           

elect the exemption from applying the equity method in IAS 28 for its investments in associates and joint ventures; and

measure its financial assets at fair value using the requirements in IFRS 9.

###### B85MAn investment entity may have some non-investment assets, such as a head office property and related equipment, and may also                        have financial liabilities. The fair value measurement element of the definition of an investment entity in paragraph 27(c)                        applies to an investment entity’s investments. Accordingly, an investment entity need not measure its non-investment assets                        or its liabilities at fair value.U.K.

###### **Typical characteristics of an investment entity**U.K.

###### B85NIn determining whether it meets the definition of an investment entity, an entity shall consider whether it displays the typical                        characteristics of one (see paragraph 28). The absence of one or more of these typical characteristics does not necessarily                        disqualify an entity from being classified as an investment entity but indicates that additional judgement is required in                        determining whether the entity is an investment entity.U.K.

###### *More than one investment*U.K.

###### B85OAn investment entity typically holds several investments to diversify its risk and maximise its returns. An entity may hold                        a portfolio of investments directly or indirectly, for example by holding a single investment in another investment entity                        that itself holds several investments.U.K.

###### B85PThere may be times when the entity holds a single investment. However, holding a single investment does not necessarily prevent                        an entity from meeting the definition of an investment entity. For example, an investment entity may hold only a single investment                        when the entity:U.K.

is in its start-up period and has not yet identified suitable investments and, therefore, has not yet executed its investment                              plan to acquire several investments;                           

has not yet made other investments to replace those it has disposed of;

is established to pool investors’ funds to invest in a single investment when that investment is unobtainable by individual                              investors (eg when the required minimum investment is too high for an individual investor); or                           

is in the process of liquidation.

###### *More than one investor*U.K.

###### B85QTypically, an investment entity would have several investors who pool their funds to gain access to investment management                        services and investment opportunities that they might not have had access to individually. Having several investors would                        make it less likely that the entity, or other members of the group containing the entity, would obtain benefits other than                        capital appreciation or investment income (see paragraph B85I).U.K.

###### B85RAlternatively, an investment entity may be formed by, or for, a single investor that represents or supports the interests                        of a wider group of investors (eg a pension fund, government investment fund or family trust).U.K.

###### B85SThere may also be times when the entity temporarily has a single investor. For example, an investment entity may have only                        a single investor when the entity:U.K.

is within its initial offering period, which has not expired and the entity is actively identifying suitable investors;

has not yet identified suitable investors to replace ownership interests that have been redeemed; or

is in the process of liquidation.

###### *Unrelated investors*U.K.

###### B85TTypically, an investment entity has several investors that are not related parties (as defined in IAS 24) of the entity or                        other members of the group containing the entity. Having unrelated investors would make it less likely that the entity, or                        other members of the group containing the entity, would obtain benefits other than capital appreciation or investment income                        (see paragraph B85I).U.K.

###### B85UHowever, an entity may still qualify as an investment entity even though its investors are related to the entity. For example,                        an investment entity may set up a separate ‘parallel’ fund for a group of its employees (such as key management personnel)                        or other related party investor(s), which mirrors the investments of the entity’s main investment fund. This ‘parallel’ fund                        may qualify as an investment entity even though all of its investors are related parties.U.K.

###### *Ownership interests*U.K.

###### B85VAn investment entity is typically, but is not required to be, a separate legal entity. Ownership interests in an investment                        entity are typically in the form of equity or similar interests (eg partnership interests), to which proportionate shares                        of the net assets of the investment entity are attributed. However, having different classes of investors, some of which have                        rights only to a specific investment or groups of investments or which have different proportionate shares of the net assets,                        does not preclude an entity from being an investment entity.U.K.

###### B85WIn addition, an entity that has significant ownership interests in the form of debt that, in accordance with other applicable                        IFRSs, does not meet the definition of equity, may still qualify as an investment entity, provided that the debt holders are                        exposed to variable returns from changes in the fair value of the entity’s net assets.U.K.

In Appendix B, a heading and paragraphs B100–B101 are added.

##### ACCOUNTING FOR A CHANGE IN INVESTMENT ENTITY STATUSU.K.

###### B100When an entity ceases to be an investment entity, it shall apply IFRS 3 to any subsidiary that was previously measured at                        fair value through profit or loss in accordance with paragraph 31. The date of the change of status shall be the deemed acquisition                        date. The fair value of the subsidiary at the deemed acquisition date shall represent the transferred deemed consideration                        when measuring any goodwill or gain from a bargain purchase that arises from the deemed acquisition. All subsidiaries shall                        be consolidated in accordance with paragraphs 19–24 of this IFRS from the date of change of status.U.K.

###### B101When an entity becomes an investment entity, it shall cease to consolidate its subsidiaries at the date of the change in status,                        except for any subsidiary that shall continue to be consolidated in accordance with paragraph 32. The investment entity shall                        apply the requirements of paragraphs 25 and 26 to those subsidiaries that it ceases to consolidate as though the investment                        entity had lost control of those subsidiaries at that date.U.K.

In Appendix C, new paragraph C1B is added.

###### C1B*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs 2, 4, C2A, C6A and Appendix A and                        added paragraphs 27–33, B85A–B85W, B100–B101 and C3A–C3F. An entity shall apply those amendments for annual periods beginning                        on or after 1 January 2014. Early application is permitted. If an entity applies those amendments earlier, it shall disclose                        that fact and apply all amendments included in *Investment Entities* at the same time.U.K.

In Appendix C, paragraph C2A is amended.

###### C2ANotwithstanding the requirements of paragraph 28 of IAS 8, when this IFRS is first applied, and, if later, when the *Investment Entities* amendments to this IFRS are first applied, an entity need only present the quantitative information required by paragraph                        28(f) of IAS 8 for the annual period immediately preceding the date of initial application of this IFRS (the ‘immediately                        preceding period’). An entity may also present this information for the current period or for earlier comparative periods,                        but is not required to do so.U.K.

In Appendix C, new paragraphs C3A–C3F are added.

###### C3AAt the date of initial application, an entity shall assess whether it is an investment entity on the basis of the facts and                        circumstances that exist at that date. If, at the date of initial application, an entity concludes that it is an investment                        entity, it shall apply the requirements of paragraphs C3B–C3F instead of paragraphs C5–C5A.U.K.

###### C3BExcept for any subsidiary that is consolidated in accordance with paragraph 32 (to which paragraphs C3 and C6 or paragraphs                        C4–C4C, whichever is relevant, apply), an investment entity shall measure its investment in each subsidiary at fair value                        through profit or loss as if the requirements of this IFRS had always been effective. The investment entity shall retrospectively                        adjust both the annual period that immediately precedes the date of initial application and equity at the beginning of the                        immediately preceding period for any difference between:U.K.

the previous carrying amount of the subsidiary; and

the fair value of the investment entity’s investment in the subsidiary.

The cumulative amount of any fair value adjustments previously recognised in other comprehensive income shall be transferred                     to retained earnings at the beginning of the annual period immediately preceding the date of initial application.                  

###### C3CBefore the date that IFRS 13 *Fair Value Measurement* is adopted, an investment entity shall use the fair value amounts that were previously reported to investors or to management,                        if those amounts represent the amount for which the investment could have been exchanged between knowledgeable, willing parties                        in an arm’s length transaction at the date of the valuation.U.K.

###### C3DIf measuring an investment in a subsidiary in accordance with paragraphs C3B–C3C is impracticable (as defined in IAS 8), an                        investment entity shall apply the requirements of this IFRS at the beginning of the earliest period for which application                        of paragraphs C3B–C3C is practicable, which may be the current period. The investor shall retrospectively adjust the annual                        period that immediately precedes the date of initial application, unless the beginning of the earliest period for which application                        of this paragraph is practicable is the current period. If this is the case, the adjustment to equity shall be recognised                        at the beginning of the current period.U.K.

###### C3EIf an investment entity has disposed of, or has lost control of, an investment in a subsidiary before the date of initial                        application of this IFRS, the investment entity is not required to make adjustments to the previous accounting for that subsidiary.U.K.

###### C3FIf an entity applies the *Investment Entities* amendments for a period later than when it applies IFRS 10 for the first time, references to ‘the date of initial application’                        in paragraphs C3A–C3E shall be read as ‘the beginning of the annual reporting period for which the amendments in *Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, are applied for the first time.’U.K.

In Appendix C, paragraph C6A is amended.

###### C6ANotwithstanding the references to the annual period immediately preceding the date of initial application (the ‘immediately                        preceding period’) in paragraphs C3B–C5A, an entity may also present adjusted comparative information for any earlier periods                        presented, but is not required to do so. If an entity does present adjusted comparative information for any earlier periods,                        all references to the ‘immediately preceding period’ in paragraphs C3B–C5A shall be read as the ‘earliest adjusted comparative                        period presented’.U.K.

#### Appendix**Consequential amendments to other Standards**

*This appendix sets out amendments to other Standards that are a consequence of the IASB issuing* Investment Entities *(Amendments to IFRS 10, IFRS 12 and IAS 27). An entity shall apply those amendments for annual periods beginning on or after                        1 January 2014. Earlier application of* Investment Entities *is permitted. If an entity applies those amendments earlier it shall apply all amendments included in* Investment Entities *at the same time. Amended paragraphs are shown with new text underlined and deleted text struck through.*                   

##### **IFRS 1 *First-time Adoption of International Financial Reporting Standards***U.K.

Paragraph 39T is added.

###### 39T*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs D16, D17 and Appendix C and added                        a heading and paragraphs E6–E7. An entity shall apply those amendments for annual periods beginning on or after 1 January                        2014. Earlier application of *Investment Entities* is permitted. If an entity applies those amendments earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

Appendix C is amended.

*This appendix is an integral part of the IFRS. An entity shall apply the following requirements to business combinations that                        the entity recognised before the date of transition to IFRSs. This Appendix should only be applied to business combinations                        within the scope of IFRS 3* Business Combinations.                  

In Appendix D, paragraphs D16–D17 are amended.

###### D16If a subsidiary becomes a first-time adopter later than its parent, the subsidiary shall, in its financial statements, measure                        its assets and liabilities at either:U.K.

the carrying amounts that would be included in the parent’s consolidated financial statements, based on the parent’s date                              of transition to IFRSs, if no adjustments were made for consolidation procedures and for the effects of the business combination                              in which the parent acquired the subsidiary (this election is not available to a subsidiary of an investment entity, as defined                              in IFRS 10, that is required to be measured at fair value through profit or loss); or                           

...

###### D17However, if an entity becomes a first-time adopter later than its subsidiary (or associate or joint venture) the entity shall,                        in its consolidated financial statements, measure the assets and liabilities of the subsidiary (or associate or joint venture)                        at the same carrying amounts as in the financial statements of the subsidiary (or associate or joint venture), after adjusting                        for consolidation and equity accounting adjustments and for the effects of the business combination in which the entity acquired                        the subsidiary. Notwithstanding this requirement, a non-investment entity parent shall not apply the exception to consolidation                        that is used by any investment entity subsidiaries. ...U.K.

In Appendix E, after paragraph E5, a heading and paragraphs E6–E7 are added.

###### **Investment entities**U.K.

###### E6A first-time adopter that is a parent shall assess whether it is an investment entity, as defined in IFRS 10, on the basis                        of the facts and circumstances that exist at the date of transition to IFRSs.U.K.

###### E7A first-time adopter that is an investment entity, as defined in IFRS 10, may apply the transition provisions in paragraphs                        C3C–C3D of IFRS 10 and paragraphs 18C–18G of IAS 27 if its first IFRS financial statements are for an annual period ending                        on or before 31 December 2014. The references in those paragraphs to the annual period that immediately precedes the date                        of initial application shall be read as the earliest annual period presented. Consequently, the references in those paragraphs                        shall be read as the date of transition to IFRSs.U.K.

##### **IFRS 3 *Business Combinations***U.K.

Paragraph 7 is amended and paragraphs 2A and 64G are added.

###### 2AThe requirements of this Standard do not apply to the acquisition by an investment entity, as defined in IFRS 10 *Consolidated Financial Statements*, of an investment in a subsidiary that is required to be measured at fair value through profit or loss.U.K.

###### 7The guidance in IFRS 10 shall be used to identify the acquirer ...U.K.

###### 64G*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraph 7 and added paragraph 2A. An entity                        shall apply those amendments for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies these amendments earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IFRS 7 *Financial Instruments: Disclosures***U.K.

Paragraph 3 is amended and paragraph 44X is added.

###### 3This IFRS shall be applied by all entities to all types of financial instruments, except:U.K.

those interests in subsidiaries, associates or joint ventures that are accounted for in accordance with IFRS 10 *Consolidated Financial Statements*, IAS 27 *Separate Financial Statements* or IAS 28 *Investments in Associates and Joint Ventures*. However, in some cases, IFRS 10, IAS 27 or IAS 28 require or permit~~s~~ an entity to account for an interest in a subsidiary, associate or joint venture using IFRS 9; in those cases, entities shall                              apply the requirements of this IFRS and, for those measured at fair value, the requirements of IFRS 13 *Fair Value Measurement*. Entities shall also apply this IFRS to all derivatives linked to interests in subsidiaries, associates or joint ventures                              unless the derivative meets the definition of an equity instrument in IAS 32.                           

###### 44X*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraph 3. An entity shall apply that amendment                        for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies that amendment earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IAS 7 *Statement of Cash Flows***U.K.

Paragraphs 42A and 42B are amended and paragraphs 40A and 58 are added.

###### 40AAn investment entity, as defined in IFRS 10 *Consolidated Financial Statements*, need not apply paragraphs 40(c) or 40(d) to an investment in a subsidiary that is required to be measured at fair value                        through profit or loss.U.K.

###### 42ACash flows arising from changes in ownership interests in a subsidiary that do not result in a loss of control shall be classified                        as cash flows from financing activities, unless the subsidiary is held by an investment entity, as defined in IFRS 10, and                        is required to be measured at fair value through profit or loss.U.K.

###### 42BChanges in ownership interests in a subsidiary that do not result in a loss of control, such as the subsequent purchase or                        sale by a parent of a subsidiary’s equity instruments, are accounted for as equity transactions (see IFRS 10, unless the subsidiary                        is held by an investment entity and is required to be measured at fair value through profit or loss. Accordingly, the resulting                        cash flows are classified in the same way as other transactions with owners described in paragraph 17.U.K.

###### 58*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs 42A and 42B and added paragraph 40A.                        An entity shall apply those amendments for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies those amendments earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IAS 12 *Income Taxes***U.K.

Paragraphs 58 and 68C are amended and paragraph 98C is added.

###### 58Current and deferred tax shall be recognised as income or an expense and included in profit or loss for the period, except                        to the extent that the tax arises from:U.K.

...

a business combination (other than the acquisition by an investment entity, as defined in IFRS 10 *Consolidated Financial Statements*, of a subsidiary that is required to be measured at fair value through profit or loss) (see paragraphs 66 to 68).                           

###### 68CAs noted in paragraph 68A, the amount of the tax deduction (or estimated future tax deduction, measured in accordance with                        paragraph 68B) may differ from the related cumulative remuneration expense. Paragraph 58 of the Standard requires that current                        and deferred tax should be recognised as income or an expense and included in profit or loss for the period, except to the                        extent that the tax arises from (a) a transaction or event that is recognised, in the same or a different period, outside                        profit or loss, or (b) a business combination (other than the acquisition by an investment entity of a subsidiary that is                        required to be measured at fair value through profit or loss). If the amount of the tax deduction (or estimated future tax                        deduction) exceeds the amount of the related cumulative remuneration expense, this indicates that the tax deduction relates                        not only to remuneration expense but also to an equity item. In this situation, the excess of the associated current or deferred                        tax should be recognised directly in equity.U.K.

###### 98C*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs 58 and 68C. An entity shall apply                        those amendments for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies those amendments earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IAS 24 *Related Party Disclosures***U.K.

Paragraphs 4 and 9 are amended and paragraph 28B is added.

###### 4Related party transactions and outstanding balances with other entities in a group are disclosed in an entity’s financial                        statements. Intragroup related party transactions and outstanding balances are eliminated, except for those between an investment                        entity and its subsidiaries measured at fair value through profit or loss, in the preparation of consolidated financial statements                        of the group.U.K.

###### **9****The terms ‘control’ and ‘investment entity’, ‘joint control’, and ‘significant influence’ are defined in IFRS 10, IFRS 11                           *Joint Arrangements* and IAS 28 *Investments in Associates and Joint Ventures* respectively and are used in this Standard with the meanings specified in those IFRSs.**U.K.

###### 28B*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs 4 and 9. An entity shall apply those                        amendments for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies those amendments earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IAS 32 *Financial Instruments: Presentation***U.K.

Paragraph 4 is amended and paragraph 97N is added.

###### 4This Standard shall be applied by all entities to all types of financial instruments except:U.K.

those interests in subsidiaries, associates or joint ventures that are accounted for in accordance with IFRS 10 *Consolidated Financial Statements*, IAS 27 *Separate Financial Statements* or IAS 28 *Investments in Associates and Joint Ventures*. However, in some cases, IFRS 10, IAS 27 or IAS 28 require or permit~~s~~ an entity to account for an interest in a subsidiary, associate or joint venture using IFRS 9; in those cases, entities shall                              apply the requirements of this Standard. Entities shall also apply this Standard to all derivatives linked to interests in                              subsidiaries, associates or joint ventures.                           

###### 97N*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraph 4. An entity shall apply that amendment                        for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies that amendment earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IAS 34 *Interim Financial Reporting***U.K.

Paragraph 16A is amended and paragraph 54 is added. New text is underlined.

###### 16AIn 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.U.K.

...

for entities becoming, or ceasing to be, investment entities, as defined in IFRS 10 *Consolidated Financial Statements*, the disclosures in IFRS 12 *Disclosure of Interests in Other Entities* paragraph 9B.                           

###### 54*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, added paragraph 16A. An entity shall apply that amendment                        for annual periods beginning 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies that amendment earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

##### **IAS 39 *Financial Instruments: Recognition and Measurement***U.K.

Paragraphs 2 and 80 are amended and paragraph 103R is added.

###### 2This Standard shall be applied by all entities to all types of financial instruments except:U.K.

those interests in subsidiaries, associates and joint ventures that are accounted for in accordance with IFRS 10 *Consolidated Financial Statements*, IAS 27 *Separate Financial Statements* or IAS 28 *Investments in Associates and Joint Ventures*. However, in some cases, IFRS 10, IAS 27 or IAS 28 require or permit an entity to account for an interest in a subsidiary,                              associate or joint venture in accordance with some or all of the requirements of this Standard. Entities shall also apply                              this Standard to derivatives on an interest in a subsidiary, associate or joint venture unless the derivative meets the definition                              of an equity instrument of the entity in IAS 32 *Financial Instruments: Presentation*.                           

...

any forward contract between an acquirer and a selling shareholder to buy or sell an acquiree that will result in a business                              combination within the scope of IFRS 3 *Business Combinations* at a future acquisition date. The term of the forward contract should not exceed a reasonable period normally necessary to                              obtain any required approvals and to complete the transaction.                           

###### 80... It follows that hedge accounting can be applied to transactions between entities in the same group only in the individual                        or separate financial statements of those entities and not in the consolidated financial statements of the group, except for                        the consolidated financial statements of an investment entity, as defined in IFRS 10, where transactions between an investment                        entity and its subsidiaries measured at fair value through profit or loss will not be eliminated in the consolidated financial                        statements. ...U.K.

###### 103R*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs 2 and 80. An entity shall apply those                        amendments for annual periods beginning on or after 1 January 2014. Earlier application of *Investment Entities* is permitted. If an entity applies those amendments earlier it shall also apply all amendments included in *Investment Entities* at the same time.U.K.

#### **Amendments to IFRS 12 *Disclosure of Interests in Other Entities***U.K.

Paragraph 2 is amended.

##### 2To meet the objective in paragraph 1, an entity shall disclose:U.K.

the significant judgements and assumptions it has made in determining:

the nature of its interest in another entity or arrangement;

the type of joint arrangement in which it has an interest (paragraphs 7–9);

that it meets the definition of an investment entity, if applicable (paragraph 9A); and

...

After paragraph 9, a heading and paragraphs 9A–9B are added.

##### **Investment entity status**U.K.

###### **9A****When a parent determines that it is an investment entity in accordance with paragraph 27 of IFRS 10, the investment entity                           shall disclose information about significant judgements and assumptions it has made in determining that it is an investment                           entity. If the investment entity does not have one or more of the typical characteristics of an investment entity (see paragraph                           28 of IFRS 10), it shall disclose its reasons for concluding that it is nevertheless an investment entity.**U.K.

###### 9BWhen an entity becomes, or ceases to be, an investment entity, it shall disclose the change of investment entity status and                        the reasons for the change. In addition, an entity that becomes an investment entity shall disclose the effect of the change                        of status on the financial statements for the period presented, including:U.K.

the total fair value, as of the date of change of status, of the subsidiaries that cease to be consolidated;

the total gain or loss, if any, calculated in accordance with paragraph B101 of IFRS 10; and

the line item(s) in profit or loss in which the gain or loss is recognised (if not presented separately).

After paragraph 19, a heading and paragraphs 19A–19G are added.

###### INTERESTS IN UNCONSOLIDATED SUBSIDIARIES (INVESTMENT ENTITIES)U.K.

###### 19AAn investment entity that, in accordance with IFRS 10, is required to apply the exception to consolidation and instead account                        for its investment in a subsidiary at fair value through profit or loss shall disclose that fact.U.K.

###### 19BFor each unconsolidated subsidiary, an investment entity shall disclose:U.K.

the subsidiary’s name;

the principal place of business (and country of incorporation if different from the principal place of business) of the subsidiary;                              and                           

the proportion of ownership interest held by the investment entity and, if different, the proportion of voting rights held.

###### 19CIf an investment entity is the parent of another investment entity, the parent shall also provide the disclosures in 19B(a)–(c)                        for investments that are controlled by its investment entity subsidiary. The disclosure may be provided by including, in the                        financial statements of the parent, the financial statements of the subsidiary (or subsidiaries) that contain the above information.U.K.

###### 19DAn investment entity shall disclose:U.K.

the nature and extent of any significant restrictions (eg resulting from borrowing arrangements, regulatory requirements or                              contractual arrangements) on the ability of an unconsolidated subsidiary to transfer funds to the investment entity in the                              form of cash dividends or to repay loans or advances made to the unconsolidated subsidiary by the investment entity; and                           

any current commitments or intentions to provide financial or other support to an unconsolidated subsidiary, including commitments                              or intentions to assist the subsidiary in obtaining financial support.                           

###### 19EIf, during the reporting period, an investment entity or any of its subsidiaries has, without having a contractual obligation                        to do so, provided financial or other support to an unconsolidated subsidiary (eg purchasing assets of, or instruments issued                        by, the subsidiary or assisting the subsidiary in obtaining financial support), the entity shall disclose:U.K.

the type and amount of support provided to each unconsolidated subsidiary; and

the reasons for providing the support.

###### 19FAn investment entity shall disclose the terms of any contractual arrangements that could require the entity or its unconsolidated                        subsidiaries to provide financial support to an unconsolidated, controlled, structured entity, including events or circumstances                        that could expose the reporting entity to a loss (eg liquidity arrangements or credit rating triggers associated with obligations                        to purchase assets of the structured entity or to provide financial support).U.K.

###### 19GIf during the reporting period an investment entity or any of its unconsolidated subsidiaries has, without having a contractual                        obligation to do so, provided financial or other support to an unconsolidated, structured entity that the investment entity                        did not control, and if that provision of support resulted in the investment entity controlling the structured entity, the                        investment entity shall disclose an explanation of the relevant factors in reaching the decision to provide that support.U.K.

After paragraph 21, paragraph 21A is added.

###### 21AAn investment entity need not provide the disclosures required by paragraphs 21(b)–21(c).U.K.

After paragraph 25, paragraph 25A is added.

###### 25AAn investment entity need not provide the disclosures required by paragraph 24 for an unconsolidated structured entity that                        it controls and for which it presents the disclosures required by paragraphs 19A–19G.U.K.

In Appendix A, a term is added.

The following terms are defined in IAS 27 (as amended in 2011), IAS 28 (as amended in 2011), IFRS 10 and IFRS 11 *Joint Arrangements* and are used in this IFRS with the meanings specified in those IFRSs:                  
          -  associate 
          -  consolidated financial statements 
          -  control of an entity 
          -  equity method 
          -  group 
          -  investment entity 
          -  joint arrangement 
          -  ... 

In Appendix C, paragraph C1B is added.

###### C1B*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraph 2 and Appendix A, and added paragraphs                        9A–9B, 19A–19G, 21A and 25A. An entity shall apply those amendments for annual periods beginning on or after 1 January 2014.                        Early adoption is permitted. If an entity applies those amendments earlier, it shall disclose that fact and apply all amendments                        included in *Investment Entities* at the same time.U.K.

#### **Amendments to IAS 27 *Separate Financial Statements***U.K.

Paragraphs 5–6 are amended.

##### 5The following terms are defined in Appendix A of IFRS 10 *Consolidated Financial Statements*, Appendix A of IFRS 11 *Joint Arrangements* and paragraph 3 of IAS 28 *Investments in Associates and Joint Ventures*:U.K.

          -  associate 
          -  control of an investee 
          -  group 
          -  investment entity 
          -  joint control 
          -  ... 

##### 6Separate financial statements are those presented in addition to consolidated financial statements or in addition to financial                        statements in which investments in associates or joint ventures are accounted for using the equity method, other than in the                        circumstances set out in paragraphs 8–8A. Separate financial statements need not be appended to, or accompany, those statements.U.K.

After paragraph 8, paragraph 8A is added.

##### 8AAn investment entity that is required, throughout the current period and all comparative periods presented, to apply the exception                        to consolidation for all of its subsidiaries in accordance with paragraph 31 of IFRS 10 presents separate financial statements                        as its only financial statements.U.K.

After paragraph 11, paragraphs 11A–11B are added.

##### 11AIf a parent is required, in accordance with paragraph 31 of IFRS 10, to measure its investment in a subsidiary at fair value                        through profit or loss in accordance with IFRS 9, it shall also account for its investment in a subsidiary in the same way                        in its separate financial statements.U.K.

##### 11BWhen a parent ceases to be an investment entity, or becomes an investment entity, it shall account for the change from the                        date when the change in status occurred, as follows:U.K.

when an entity ceases to be an investment entity, the entity shall, in accordance with paragraph 10, either:

account for an investment in a subsidiary at cost. The fair value of the subsidiary at the date of the change of status shall                                       be used as the deemed cost at that date; or                                    

continue to account for an investment in a subsidiary in accordance with IFRS 9.

when an entity becomes an investment entity, it shall account for an investment in a subsidiary at fair value through profit                              or loss in accordance with IFRS 9. The difference between the previous carrying amount of the subsidiary and its fair value                              at the date of the change of status of the investor shall be recognised as a gain or loss in profit or loss. The cumulative                              amount of any fair value adjustment previously recognised in other comprehensive income in respect of those subsidiaries shall                              be treated as if the investment entity had disposed of those subsidiaries at the date of change in status.                           

After paragraph 16, paragraph 16A is added.

##### **16A****When an investment entity that is a parent (other than a parent covered by paragraph 16) prepares, in accordance with paragraph                           8A, separate financial statements as its only financial statements, it shall disclose that fact. The investment entity shall                           also present the disclosures relating to investment entities required by IFRS 12 *Disclosure of Interests in Other Entities*.**U.K.

Paragraph 17 is amended.

##### **17****When a parent (other than a parent covered by paragraphs 16–16A) or an investor with joint control of, or significant influence                           over, an investee prepares separate financial statements, the parent or investor shall identify the financial statements prepared                           in accordance with IFRS 10, IFRS 11 or IAS 28 (as amended in 2011) to which they relate. The parent or investor shall also                           disclose in its separate financial statements:**U.K.

**...**                            

Paragraph 18 is amended.

##### 18... If an entity applies this Standard earlier, it shall disclose that fact and apply IFRS 10, IFRS 11, IFRS 12 and IAS 28 (as                        amended in 2011) at the same time.U.K.

After paragraph 18, paragraphs 18A–18I are added.

##### 18A*Investment Entities* (Amendments to IFRS 10, IFRS 12 and IAS 27), issued in October 2012, amended paragraphs 5, 6, 17 and 18, and added paragraphs                        8A, 11A–11B, 16A and 18B–18I. An entity shall apply those amendments for annual periods beginning on or after 1 January 2014.                        Early adoption is permitted. If an entity applies those amendments earlier, it shall disclose that fact and apply all amendments                        included in *Investment Entities* at the same time.U.K.

##### 18BIf, at the date of initial application of the *Investment Entities* amendments (which, for the purposes of this IFRS, is the beginning of the annual reporting period for which those amendments                        are applied for the first time), a parent concludes that it is an investment entity, it shall apply paragraphs 18C–18I to                        its investment in a subsidiary.U.K.

##### 18CAt the date of initial application, an investment entity that previously measured its investment in a subsidiary at cost shall                        instead measure that investment at fair value through profit or loss as if the requirements of this IFRS had always been effective.                        The investment entity shall adjust retrospectively the annual period immediately preceding the date of initial application                        and shall adjust retained earnings at the beginning of the immediately preceding period for any difference between:U.K.

the previous carrying amount of the investment; and

the fair value of the investor’s investment in the subsidiary.

##### 18DAt the date of initial application, an investment entity that previously measured its investment in a subsidiary at fair value                        through other comprehensive income shall continue to measure that investment at fair value. The cumulative amount of any fair                        value adjustment previously recognised in other comprehensive income shall be transferred to retained earnings at the beginning                        of the annual period immediately preceding the date of initial application.U.K.

##### 18EAt the date of initial application, an investment entity shall not make adjustments to the previous accounting for an interest                        in a subsidiary that it had previously elected to measure at fair value through profit or loss in accordance with IFRS 9,                        as permitted in paragraph 10.U.K.

##### 18FBefore the date that IFRS 13 *Fair Value Measurement* is adopted, an investment entity shall use the fair value amounts previously reported to investors or to management, if those                        amounts represent the amount for which the investment could have been exchanged between knowledgeable, willing parties in                        an arm’s length transaction at the date of the valuation.U.K.

##### 18GIf measuring the investment in the subsidiary in accordance with paragraphs 18C–18F is impracticable (as defined in IAS 8                        *Accounting Policies, Changes in Accounting Estimates and Errors*), an investment entity shall apply the requirements of this IFRS at the beginning of the earliest period for which application                        of paragraphs 18C–18F is practicable, which may be the current period. The investor shall adjust retrospectively the annual                        period immediately preceding the date of initial application, unless the beginning of the earliest period for which application                        of this paragraph is practicable is the current period. When the date that it is practicable for the investment entity to                        measure the fair value of the subsidiary is earlier than the beginning of the immediately preceding period, the investor shall                        adjust equity at the beginning of the immediately preceding period for any difference between:U.K.

the previous carrying amount of the investment; and

the fair value of the investor’s investment in the subsidiary.

If the earliest period for which application of this paragraph is practicable is the current period, the adjustment to equity                     shall be recognised at the beginning of the current period.                  

##### 18HIf an investment entity has disposed of, or lost control of, an investment in a subsidiary before the date of initial application                        of the *Investment Entities* amendments, the investment entity is not required to make adjustments to the previous accounting for that investment.U.K.

##### 18INotwithstanding the references to the annual period immediately preceding the date of initial application (the ‘immediately                        preceding period’) in paragraphs 18C–18G, an entity may also present adjusted comparative information for any earlier periods                        presented, but is not required to do so. If an entity does present adjusted comparative information for any earlier periods,                        all references to the ‘immediately preceding period’ in paragraphs 18C–18G shall be read as the ‘earliest adjusted comparative                        period presented’. If an entity presents unadjusted comparative information for any earlier periods, it shall clearly identify                        the information that has not been adjusted, state that it has been prepared on a different basis, and explain that basis.U.K.

1

OJ L 243, 11.9.2002, p. 1.                           

2

OJ L 320, 29.11.2008, p. 1.                           

3

Paragraph C7 of IFRS 10 *Consolidated Financial Statements* states “If an entity applies this IFRS but does not yet apply IFRS 9, any reference in this IFRS to IFRS 9 shall be read                              as a reference to IAS 39 *Financial Instruments: Recognition and Measurement*.”