Notes to the consolidated financial statements
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- 51 Future accounting developments
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51 Future accounting developments
The following pronouncements will be relevant to the Group but were not effective at 31 December 2008 and have not been applied in preparing these financial statements. The full impact of these accounting changes is being assessed by the Group, however, the initial view is that none of these pronouncements are expected to cause any material adjustments to reported numbers in the financial statements.
Pronouncement |
Nature of change |
Effective date |
| IFRIC 13 Customer Loyalty Programmes |
Addresses accounting by entities who grant customer loyalty award credits to customers as part of sales transactions and which can be redeemed in the future for free or discounted goods or services. |
Annual periods beginning on or after 1 July 2008. |
|---|---|---|
| IFRIC 16 Hedges of a Net Investment in a Foreign Operation1 |
Provides guidance on accounting for hedges of net investments in foreign operations in an entity's consolidated financial statements. |
Annual periods beginning on or after 1 October 2008. |
| IAS 1 Presentation of Financial Statements |
Revises the overall requirements for the presentation of financial statements, guidance for their structure and minimum content requirements. The revised standard requires the presentation of all non-owner changes in equity within a statement of comprehensive income. |
Annual periods beginning on or after 1 January 2009. |
| IAS 23 Borrowing Costs |
Requires interest and other costs incurred in connection with the borrowing of funds to be recognised as an expense except for those which are directly attributable to the acquisition, construction or production of assets that take a substantial period of time to get ready for their intended use or sale which must be capitalised as part of the cost of those assets. |
Annual periods beginning on or after 1 January 2009. |
| IFRS 8 Operating Segments |
Replaces IAS 14 Segment Reporting and requires reporting of financial and descriptive information about operating segments which are based on how financial information is reported and evaluated internally. |
Annual periods beginning on or after 1 January 2009. |
| IFRS 2 Share-based Payment – Vesting Conditions and Cancellations |
The amendment restricts the definition of vesting conditions to include only service conditions and performance conditions and deals with the accounting consequences of a failure to meet a condition other than a vesting condition including how to deal with cancellations by the counterparty and circumstances where neither the entity nor the counterparty is in a position to choose whether or not to meet a vesting condition. |
Annual periods beginning on or after 1 January 2009. |
| Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on Liquidation |
The amendment requires some puttable financial instruments (being those which give the holder the right to put the instrument back to the issuer for cash or another financial asset) and some financial instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation to be classified as equity. |
Annual periods beginning on or after 1 January 2009. |
| Improvements to IFRSs |
Sets out minor amendments to IFRS standards as part of annual improvements process. |
Dealt with on a standard by standard basis but not earlier than annual periods beginning on or after 1 January 2009. |
| Amendment to IAS 27 Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate |
Removes the definition of the cost method and requires the presentation of dividends as income in the separate financial statements of the investor. |
Annual periods beginning on or after 1 January 2009. |
| IFRS 3 Business Combinations1, 2 |
The revised standard continues to apply the acquisition method to business combinations, however, all payments to purchase a business are to be recorded at fair value at the acquisition date, some contingent payments are subsequently remeasured at fair value through income, goodwill may be calculated based on the parent's share of net assets or it may include goodwill related to the minority interest, and all transaction costs are expensed. |
Annual periods beginning on or after 1 July 2009. |
| IAS 27 Consolidated and Separate Financial Statements1, 2 |
Requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control; any remaining interest in an investee is re-measured to fair value in determining the gain or loss recognised in profit or loss where control over the investee is lost. |
Annual periods beginning on or after 1 July 2009. |
| IFRIC 17 Distributions of Non-cash Assets to Owners1, 2 |
Provides accounting guidance for non-reciprocal distributions of non-cash assets to owners (and those in which owners may elect to receive a cash alternative). |
Annual periods beginning on or after 1 July 2009. |
| Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items1, 2 |
Clarifies how the principles underlying hedge accounting should be applied in particular situations. |
Annual periods beginning on or after 1 July 2009. |
1At the date of this report, these pronouncements are awaiting EU endorsement.
2Subject to EU endorsement, the Group has not yet made a final decision as to whether it will apply these pronouncements in the 2009 financial statements.