Pallet-Management-Services - AFM

2. Summary of significant accounting policies
Statement of compliance
The separate financial statements of the Company have been prepared in accordance with all
International Financial Reporting Standards (IFRS) as adopted by the European Union.
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous year.
The Company has adopted the following amended IFRS standards and IFRIC interpretation
during the year. Adoption of these revised standards and this interpretation did not have any
effect on the financial statements of the Company.
� IAS 21 Amendments – The Effects of Changes in Foreign Exchange Rates
� IAS 39 Financial Instruments: Recognition and Measurement
� IFRIC 4 Determining whether an Arrangement contains a Lease
Future changes in accounting policies
� IAS 1 Amendment – Presentation of Financial Statements that has been issued
but is effective as of January 1, 2007 and will not be applied before that date. IAS
1 will require the Company to make new disclosures to enable users of the
financial statements to evaluate objectives, policies and processes for managing
capital.
� IFRS 7 Financial Instruments that has been issued but is effective as of January
1, 2007 and will not be applied before that date. IFRS 7 will require additional
disclosures to enable users to evaluate the significance of the Company’s
financial instruments and the nature and extent of risks arising from those
financial instruments.
� IFRS 8 Operating Segments that has been issued however not yet endorsed.
This standard will be effective as of January 1, 2009 and will not be applied
before that date. IFRS 8 requires an entity to disclose information to enable users
of its financial statements to evaluate the nature and financial effects of the
business activities in which it engages and the economic environments in which it
operates.
� IFRIC 8 Scope of IFRS 2 that has been issued but is effective for fiscal years
beginning on or after May 1, 2006. This IFRIC will be applied by the Company in
the fiscal year 2007. The IFRIC has to be applied to any arrangements where
equity instruments are issued for consideration which appears to be less than fair
value.
� IFRIC 9 Reassessment of Embedded Derivatives that has been issued but is
effective for fiscal years beginning on or after June 1, 2006 and will be applied by
the Company in the fiscal year 2007. This interpretation establishes that the date
to assess the existence of an embedded derivative is the date an entity first
becomes a party of the contract, with reassessment only if there is a change to
the contract that significantly modifies the cash flow. The Company is still
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