5. Accounting standards to be applied for the first time
The Nordzucker Group applied the following pronouncements or amendments to existing pronouncements of the IASB or IFRS IC for the first time during the reporting period:
- Amendment to IAS 1 Presentation of Financial Statements;
- Amendment to IAS 19 Employee Benefits;
- IFRS 13 Fair Value Measurement;
- Amendment to IFRS 7 (designation of the amendment: Disclosures – Offsetting Financial Assets and Financial Liabilities);
- Improvements to International Financial Reporting Standards (published 2012);
- Amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards (designation of the amendment: Government Loans);
- IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.
The amendment to IAS 1 contains new guidelines for the structure of the statement of comprehensive income. The items listed under other comprehensive income on the statement of comprehensive income must now be divided into two groups, depending on whether or not they will be reclassified to the income statement in the future.
The amended of IAS 19 has resulted in significant changes to the accounting policies used by the Nordzucker Group. Note 7 goes into more detail regarding the changes to the regulations and the effects associated with them.
IFRS 13 contains general and overarching regulations with regard to the definition and determination of fair value, as well as to the associated disclosures. The guidelines apply to almost every standard, with accounting for Inventories (IAS 2), Leases (IAS 17) and Share-based Payment (IFRS 2) the only exceptions. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The amendment to IFRS 7 extends the disclosure obligations for financial instruments to include disclosures in connection with offsetting financial assets and financial liabilities.
The IASB makes amendments to various IFRSs via its overarching ‘Improvements to International Financial Reporting Standards’. A total of five standards were amended with the 2012 publication. The amendments to IAS 16 are likely to be the only ones relevant to the Nordzucker Group. These amendments clarify the fact that spare parts, stand-by equipment and servicing equipment may qualify as items of property, plant and equipment if they fulfil the relevant definition.
The amendment to IFRS 1 is not relevant to the Nordzucker Group because IFRS 1 concerns the first-time application of IFRS.
IFRIC 20 is also of no consequence for the Nordzucker Group because its interpretation refers to accounting issues facing mining companies.
With the exception of the amendments to IAS 19, none of the above amendments have any major impact on the net assets, financial and earnings position or the cash flows of the Nordzucker Group.