Consolidated Financial Statements >
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES
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| 2012 annual report prysmian group
The principal changes are as follows:
IFRS 10 - Consolidated Financial Statements
This standard supersedes
SIC 12 - Consolidation: Special
Purpose Entities and parts of IAS 27 - Consolidated and
Separate Financial Statements.
The objective of the new
standard is to define the concept of control and to combine
the guidance on consolidation in a single document.
The new definition of control is more detailed and complex
than before, and is associated with the continuing existence
of all three of the following precise circumstances: power
over the investee, exposure or rights to variable returns from
involvement with the investee and ability of the investor to
use its power over the investee to affect the amount of its
return.
IAS 27 - Separate Financial Statements
IAS 27 - Consolidated and Separate Financial Statements has
been revised following publication of IFRS 10 - Consolidated
Financial Statements.
All references to consolidation have
been removed from the revised standard. Consequently, IAS
27 addresses only separate financial statements presented
by a parent.
IFRS 11 - Joint Arrangements
This document supersedes
IAS 31 - Interests in Joint Ventures
and SIC 13 - Jointly Controlled Entities: Non-Monetary
Contributions by Venturers
and establishes principles for
identifying a joint arrangement on the basis of the rights
and obligations arising from the arrangement, rather than
its legal form. The accounting treatment differs according to
whether the arrangement is classified as a joint operation
or a joint venture. In addition, the existing policy choice of
proportionate consolidation for joint ventures has been
eliminated.
IFRS 12 - Disclosure of Interests in Other Entities
This document refers to the disclosures concerning interests
in other entities, including subsidiaries, associates and joint
ventures.
The objective is to disclose information that enables
users of financial statements to evaluate the nature of
risks associated with interests in strategic investments
(consolidated and otherwise) intended to be held over the
medium to long term.
IFRSs 10, 11 and 12 and IAS 27 were published in the Official
Journal of the European Union on 29 December 2012 and
apply at the latest from the commencement date of the first
financial year starting on or after 1 January 2014. The Group
has not yet carried out an analysis of the effects of these new
standards.
On the same date the IASB issued IFRS 13 - Fair Value
Measurement, which sets out in a single document the rules
defining the fair value concept and its use for measurement
purposes in the various circumstances permitted by IFRSs.
This standard was published in the Official Journal of the
European Union on 29 December 2012 and applies from the
commencement date of the first financial year starting on or
after 1 January 2013.
On 16 June 2011, the IASB issued an amendment to IAS
1 - Presentation of Financial Statements. The amendment
requires entities to group together items within “Other
comprehensive income” based on whether they can or cannot
subsequently be reclassified to profit or loss. This document
was published in the Official Journal of the European Union on
6 June 2012 and applies to financial years beginning on or after
1 July 2012.
On the same date, the IASB also published a revised version of
IAS 19 - Employee Benefits. The amendments make important
improvements insofar as: they eliminate the “corridor method”
option to defer recognition of actuarial gains and losses,
and require plan deficits or surpluses to be presented in the
statement of financial position, costs relating to employee
service and net interest expense to be recognised in the income
statement, and actuarial gains and losses arising from the
remeasurement of plan assets and liabilities to be presented
in other comprehensive income. The return on plan assets
recognised in net interest expense must be calculated using
the discount rate applying to plan liabilities and no longer
using the expected rate of return on plan assets. The revised
standard also calls for new disclosures to be provided in the
notes to financial statements. This document was published in
the Official Journal of the European Union on 6 June 2012 and
applies to financial years beginning on or after 1 January 2013,
with earlier application permitted.
Following the change in measuring the return on plan assets,
the Group has estimated that the impact on the income
statement for 2012 is approximately Euro 2 million in additional
finance costs.
