Annual Report 2010 - Hannover Re

The consolidated financial statement was drawn up in euros
(EUR), the amounts shown have been rounded to EUR thousands
and – provided this does not detract from transparency
– to EUR millions. Figures indicated in brackets refer to the
previous year.
The present consolidated financial statement was prepared by
the Executive Board on 14 February 2010 and hence released
for publication.
New accounting principles
In the 2010 financial year the following IFRS requiring mandatory
application were of relevance to Hannover Re:
In June 2009 the IASB published amendments to IFRS 2
“Group Cash-settled Share-based Payment Transactions”, application
of which is mandatory for the 2010 financial year.
The amendments do not have any significant implications for
the net assets, financial position or results of operations of
Hannover Re.
In January 2008 the IASB published the revised versions of
IFRS 3 “Business Combinations” and IAS 27 “Consolidated
and Separate Financial Statements”. The new provisions primarily
cover the balance sheet recognition of minority interests,
measurement issues in connection with successive acquisition,
changes in a participating interest with or without a loss
of control as well as adjustments to acquisition costs depending
upon future events and their effects on goodwill. Since the
amendments are to be applied prospectively to financial years
beginning on or after 1 July 2009, implications for Hannover
Re can only arise in connection with future acquisitions.
In April 2009 the IASB published “Improvements to IFRSs (Issued
16 April 2009)”, a collection of various minor amendments
to IFRS that are for the most part applicable from the
2010 financial year onwards. Insofar as these changes were of
practical relevance to the Group, they had no significant effect
on the net assets, financial position or results of operations of
Hannover Re.
Standards or changes in standards that have not yet entered
into force or are not yet applicable
The IASB has issued the following standards, interpretations
and amendments to existing standards with possible implications
for the consolidated financial statement of Hannover Re,
application of which is not yet mandatory for the year under
review and which are not being applied early by Hannover Re:
In November 2009 the IASB published the revised IAS 24
“Related Party Disclosures”. A major new feature of IAS 24
is the requirement for disclosures of “commitments”, for
example guarantees, undertakings and other commitments,
which are dependent upon whether (or not) a particular event
occurs in the future. The definition of a related entity or a
related person is also clarified. The standard, the implications
of which for Hannover Re are currently under review, was ratified
by the European Union effective 20 July 2010 and must
be applied with effect from 1 January 2011.
In November 2009 the IASB also issued IFRS 9 “Financial
Instruments” on the classification and measurement of financial
instruments. IFRS 9 is the first step in a three-phase
project intended to replace IAS 39 “Financial Instruments:
Recognition and Measurement” with a new standard. IFRS 9
introduces new requirements for classifying and measuring
financial assets. The provisions of IFRS 9 were expanded in
October 2010 with an eye to financial liabilities for which the
fair value option is chosen. The standard, the implications of
which for Hannover Re are currently under review, has not yet
been ratified by the European Union.
The following table provides an overview of all other standards
and interpretations that have not yet entered into force or are
not yet applicable. Hannover Re is currently reviewing the
potential implications of their application in future reporting
periods.
114 NOTES 2. accounting principles
Hannover Re Group annual report 2010