Consolidated financial statement
Accounting standards, amendments and ifrs and ifric interpretations endorsed by the european union, but not yet applicable except through early adoption
- Investment entities (IFRS 10; IFRS 12 and IAS 27): on 31 October 2012, the IASB issued the document "Investment Entities" which regulates the activities carried out by specific types of entities qualified as investment entities. The IASB identifies as investment entities
those entities whose sole purpose is to obtain an increase in the invested capital or income from the investment or both. The provisions shall be effective for the financial years starting on or after 1 January 2014.
- On 29 May 2013, the IASB published the amendment to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets, which limits the obligation to indicate in the disclosures the recoverable value of assets or of cash generating units (CGU) and expressly requires to provide information about the discount rate used to determine an impairment loss (or a reversal) when the recoverable value (based on fair value less cost to sell) is determined using the present value technique.
- Guide to the transition (IFRS 10, IFRS 11, IFRS 12): on 28 June 2012, the IASB issued the document "Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities", providing some clarifications and simplifications with reference
to the transition requirements of the IFRS 10, IFRS 11 and IFRS 12 standards.
- IFRS 10 - Consolidated Financial Statements: the standard replaces SIC-12 Consolidation – Special Purpose Entities and certain parts of IAS 27 – Consolidated and Separate Financial Statements, which will change its name to IAS 27 – Separate Financial Statements and will
regulate the accounting treatment of equity investments in the Separate Financial Statements. The new IFRS 10 standard identifies the concept of control as the determining factor for the purposes of the consolidation of a company in the Consolidated Financial Statements of the parent company, providing a guide to determine the existence of control in cases that are difficult to interpret.
- IFRS 11 – Joint Arrangements the standard replaces IAS 31 – Interests in Joint Ventures and SIC-13 – Jointly Controlled Entities – Non-Monetary Contributions by Venturers. The new standard provides criteria to identify joint arrangements based on the rights and obligations deriving from the arrangement rather than on their type and it establishes the equity method as the sole method of accounting for interests in jointly controlled entities in the Consolidated Financial Statements.
- IFRS 12 - Disclosure of Interests in Other Entities: the purpose of the standard is to illustrate the required disclosure concerning interests (subsidiaries, joint arrangements, associates, special purpose entities and other unconsolidated structured entities).
- IAS 27 – Consolidated and Separate Financial Statements: the purpose of the amendment to IAS 27 is to provide the rules to be enforced in accounting for equity investments in subsidiaries, jointly controlled entities and associates in the preparation of the Separate Financial Statements. The amendment, then, maintains unchanged the prescriptions for the Separate Financial Statements, replacing the parts relating to the Statutory Financial Statements with the prescriptions of the new IFRS 10, referenced herein for additional details.
- IAS 28 – Investments in Associates and joint ventures: the amendment to IAS 28 (as amended in 2011) defines the requirements for the application of the equity method in accounting for investments in associates and joint ventures.
On 16 December 2011 the IASB issued some amendments to IAS 32 – Financial Instruments: Presentation, to clarify the application of certain criteria for offsetting financial assets and liabilities present in IAS 32. The amendments apply retrospectively for years starting on or after 1 January 2014.
- IAS 39 – Novation of Derivatives and Continuation of Hedge Accounting: the amendment introduces the possibility of continuing hedge accounting for derivatives designated as hedging instruments, subject to novation from one counterparty to another central counterparty, where that novation is required by legislation/regulation.
The IASB also issued the following amendments, for which the European Union endorsement process had not yet been completed at the time of these Financial Statements.
- IFRS 9 - Financial Instruments. The amendments pertain to the criteria for the recognition and measurement of financial assets and their classification in the financial statements. In particular, the new provisions establish, inter alia, a model for the classification and measurement of financial assets, based solely on the following categories: (i) assets measured at amortised cost; (ii) assets measured at fair value. The new provisions, moreover, prescribed that equity investments other than those in subsidiaries, joint ventures or affiliates shall be measured at fair value, recognising the effects in the Income Statement.
If said equity investments are not held for trading purposes, fair value changes may be recognised in the statement of comprehensive income, maintaining in the Income Statement solely the effects connected with the distribution of dividends; when the equity investment is sold, the amounts recognised in the statement of comprehensive income shall not be allocated in the Income Statement. Moreover, on 28 October 2010 the IASB complemented the provisions of IFRS 9 including the criteria for the recognition and measurement of financial liabilities. In particular, the new provisions require, inter alia, that if a financial liability is measured at fair value, allocating the effects in the Income Statement, fair value variations connected to changes in the issuer's credit risk ("own credit risk") shall be recognised in the statement of comprehensive income; said component shall be recognised in the Income Statement to assure the symmetric representation with other financial statement items connected with the liability, avoiding accounting mismatches. On 19 November 2013 the IASB issued a further change to the amendment, including the new hedge accounting model and allowing the adoption of the fair value treatment of credit rating changes on liabilities recognised at fair value through profit and loss. According to the new change, the provisions of IFRS 9 no longer have an express effective date, so the date of 1 January 2015 has been removed.
- IAS 19 – Defined Benefit Plans: Employee Contributions: the amendment clarifies that contributions to defined benefit plans from employees or third parties that are linked to service should be attributed to periods of service.
Based on the information currently available, adoption of said changes is not expected tohave significant effects on the Consolidated Financial Statements.