Annual Report and Accounts 2009 - BG Group

Notes to the accounts
1 NEW ACCOUNTING STANDARDS
The impact of new accounting standards, amendments and interpretations on BG Group’s Financial Statements for 2009 is set out below.
IAS 1 (revised) ‘Presentation of Financial Statements’
The International Accounting Standards Board (IASB) issued amendments to IAS 1 in September 2007 which were applicable for the year ended
31 December 2009. The main changes from the previous version of IAS 1 are in relation to the reporting of owner changes in equity and comprehensive
income. In accordance with this standard, the Group has continued to report a separate ‘Consolidated Income Statement’ and has reported a separate
‘Consolidated Statement of Comprehensive Income’ in place of a ‘Consolidated Statement of Recognised Income and Expense’. In addition, the Group
has presented a ‘Consolidated Statement of Changes in Equity’ as part of its primary Financial Statements for the year ended 31 December 2009.
Amendments to IFRS 7 ‘Improving Disclosures about Financial Instruments’
In March 2009 the IASB issued amendments to IFRS 7 which were applicable for the year ended 31 December 2009. These amendments introduce a
three-level hierarchy for fair value measurement disclosures and require entities to provide additional disclosures about the relative reliability of fair value
measurements. In addition, the amendments clarify and enhance existing requirements for the disclosure of liquidity risk. The additional information
required by these amendments can be found in note 18, page 95.
Improvements to IFRSs
The IASB issued amendments to a number of IFRSs in May 2008 as part of its annual improvement project. The amendments included a change to IAS 1
regarding the current/non-current classification of derivative financial instruments. This amendment clarifies that a derivative that is neither held for
trading purposes nor a designated hedging instrument should be presented as current or non-current on the basis of its settlement date. This amendment
along with the majority of those resulting from the annual improvement project was applicable for the year ended 31 December 2009. None of the
amendments resulted in a material change to the Group’s Financial Statements.
IAS 23 (revised) ‘Borrowing Costs’
The IASB issued amendments to IAS 23 in March 2007. The main change from the previous version of IAS 23 is the removal of the option of immediately
recognising as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or sale. The amendments were
applicable for the year ended 31 December 2009 but did not result in any changes to the Group’s Financial Statements.
Amendment to IFRS 2 ‘Share-based Payment: Vesting Conditions and Cancellations’
The IASB issued an amendment to IFRS 2 in January 2008. The amendment clarified the definition of vesting conditions and the accounting treatment of
cancellations, including cancellations by parties other than the Company. The amendment was applicable for the year ended 31 December 2009 but did
not result in any changes to the Group’s Financial Statements.
Amendments to IFRIC 9 ‘Reassessment of Embedded Derivatives’ and IAS 39 ‘Financial Instruments: Recognition and Measurement’
In March 2009 the IASB issued amendments to IFRIC 9 and IAS 39. The amendments clarified the accounting treatment of embedded derivatives in
relation to financial instruments that have been reclassified out of the ‘at fair value through profit or loss’ category. The amendment was applicable
for the year ended 31 December 2009 but did not result in any changes to the Group’s Financial Statements.
IFRIC 16 ‘Hedges of a Net Investment in a Foreign Operation’
The International Financial Reporting Interpretations Committee (IFRIC) issued IFRIC 16 in July 2008 which was applicable for the year ended
31 December 2009. The interpretation clarifies the nature and amount of foreign exchange risk that qualifies as a hedged item under a net investment
hedge and where, in a group, hedging instruments can be held. The IFRIC did not result in any changes to the Group’s Financial Statements.
IFRIC 18 ‘Transfers of Assets from Customers’
The IFRIC issued IFRIC 18 in January 2009, which was applicable on a prospective basis from 1 July 2009. The interpretation clarifies the requirements for
agreements in which an entity receives, from a customer, an item of property, plant and equipment that the entity must then use to connect the customer
to a distribution network or provide an ongoing supply of goods or services. The interpretation also extends to agreements in which an entity receives cash
from a customer for the purpose of constructing or acquiring property, plant and equipment for the same purpose. The IFRIC did not result in any material
change to the Group’s Financial Statements.
The following standards, amendments and interpretations were also applicable for the year ended 31 December 2009 and were either not relevant to
BG Group or had no impact on the Group’s Financial Statements:
• Amendments to IAS 32 and IAS 1 ‘Puttable Financial Instruments and Obligations Arising on Liquidation’;
• Amendments to IFRS 1 and IAS 27 ‘Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate’;
• IFRIC 13 ‘Customer Loyalty Programmes’; and
• IFRIC 15 ‘Agreements for the Construction of Real Estate’.
BG Group Annual Report and Accounts 2009
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