A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2012, and have consequently not been applied in preparing these consolidated financial statements.
Amendments to IAS 32 (effective for annual periods beginning on or after 1 January 2014) and amendments to IFRS 7 (effective for annual periods beginning on or after 1 January 2013) relating to offsetting of financial assets and financial liabilities, as published in December 2012, have not been applied in preparing these consolidated financial statements. Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements.
financial liabilities. IFRS 9 enhances the ability of investors and other users of financial information to understand the accounting of financial assets and reduces complexity. Furthermore, IFRS 9 addresses the accounting for changes in the fair value of financial liabilities (designated at fair value through profit or loss) attributable to changes in the credit risk of that liability. Grontmij is currently in the process of determining the impact of adopting this Standard on the Company’s consolidated financial statements.
IFRS 10 ‘Consolidated Financial Statements’ (effective for annual periods beginning on or after January 1, 2013)
The Standard is endorsed by the European Union. IFRS 10 replaces the parts of IAS 27 ‘Consolidated and Separate Financial Statements’ that deal with consolidated financial statements. Under IFRS 10 there is only one basis of consolidation, being control. In addition, IFRS 10 includes a new definition of control that contains three elements: a) power over an investee, b) exposure, or rights to variable returns from its involvement with the investee, and c) the ability to use power over the investee to affect the amount of the investor’s returns. Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements.
IFRS 11 ‘Joint Arrangements’ (effective for annual periods beginning on or after January 1, 2013)
The Standard is endorsed by the European Union. IFRS 11 replaces IAS 31 ‘Interests in Joint Ventures’ and deals with how a joint arrangement of which two or more parties have joint control should be classified. Under IFRS 11, joint ventures are required to be accounted for using the equity method of accounting, whereas under IAS 31, jointly controlled entities can be accounted for using the equity method of accounting or proportionate accounting. Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements.
IFRS 12 ‘Disclosure of Interest in Other Entities’ (effective for annual periods beginning on or after January 1, 2013)
The Standard is endorsed by the European Union. IFRS 12 is a disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements.
In June 2012, the Amendments to IFRS 10, IFRS 11, IFRS 12 were issued to clarify certain transitional guidance on the application of these IFRSs for the first time.
IFRS 13 ‘Fair Value Measurement’ (effective for annual periods beginning on or after January 1, 2013)
The Standard is endorsed by the European Union. IFRS 13 defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. The Standard applies to both financial instrument items and non-financial instrument items. Grontmij is currently in the process of determining the impact of adopting this Standard on the Company’s consolidated financial statements. Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements then only a more extensive disclosure.
IAS 1 Amendments ‘Presentation of Items of Other Comprehensive Income’ (effective for annual periods beginning on or after July 1, 2012)
The amendments are endorsed by the European Union. The amendments to IAS 1 introduce new terminology for the statement of comprehensive income and income statement. And the amendments to IAS 1 require additional disclosures to be made in the other comprehensive income section such that items are grouped into two categories: (a) items that will not be reclassified subsequently to profit or loss; and (b) items that will be reclassified subsequently to profit or loss when specific conditions are met. Other than the above mentioned presentation changes the application of amendments to IAS 1 does not result in any impact on profit or loss, other comprehensive income and total comprehensive income.
IAS 19 Revised ‘Employee Benefits’ (effective for annual periods beginning on or after January 1, 2013)
This Revised standard is endorsed by the European Union. The most significant amendments to IAS 19 relate to the accounting for changes in defined benefit obligations and plan assets. The amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they occur, and hence eliminate the ‘corridor approach’ permitted under the previous version of IAS 19 and accelerate the recognition of past service costs. The amendments require all actuarial gains and losses to be recognised immediately through other comprehensive income in order for the net pension asset or liability recognised in the consolidated statement of financial position to reflect the full value of the plan deficit or surplus. Further, the amendments enhance the disclosure requirements for an employer’s participation in a multiemployer plan. If the Group would have applied IAS 19 as from January 1, 2012, the amendment would have an impact on other comprehensive income as per 31 December 2012 of € 2,638,000 (decrease) and on the net result of € 18,000 (increase).
requirements for the application of the equity method when accounting for investment in associates and joint ventures. The revised standard defines ‘significant influence’ and provides guidance on how the equity method of accounting is to be applied and it prescribes how they should be tested for impairment. Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements.
Annual improvements to IFRSs 2009-2011 Cycle (effective for annual periods beginning on or after January 1, 2013)
The annual improvements to IFRSs 2009-2011 include a number of amendments to various IFRSs. They include: • amendments to IAS 16 ‘Property, plant & equipment’
• amendments to IAS 32 ‘Financial instruments: Presentation’
Grontmij anticipates that adoption will not have a material impact on our consolidated financial statements.
4 Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value.