Annual Report - Končar Distribution and Special Transformers Inc.

Notes to the financial statements - continued
Standards, Amendments and Interpretations issued by IASB, adopted by the European Union and Croatian Board
for financial reporting standards and effective
The Company has applied for the year ended 31 December 2012 the following amendments issued which are or have
become effective during the year and presented, in accordance with the requirements, comparative data. The application of
new standards had no effect on the equity as at 1 January 2012:
IFRS 7 Financial instruments: Disclosures - Transfers of Financial Assets - amendments effective for annual periods
beginning on or after 1 July 2011.
Standards, amendments and interpretations to existing standards which are not yet effective
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing
standards have been published but are not yet effective for the year ended 31 December 2012:
IFRS 1 First time adoption of IFRS - replacement of fixed dates for certain exceptions - effective for annual periods
beginning on or after 1 July 2013,
IFRS 1 First time adoption of IFRS - additional exemptions for entities ceasing to suffer from severe hyperinflation -
effective for annual periods beginning on or after 1 July 2013,
IAS 12 Income taxes (revised) - limited scope amendment effective for annual periods beginning on or after 1 January 2013,
IFRS 9 Financial Instruments - new standard effective for annual periods beginning on or after 1 January 2015,
IFRS 10 Consolidated financial statements - new standard effective for annual periods beginning on or after 1 January 2014,
IFRS 11 Joint arrangements - new standard effective for annual periods beginning on or after 1 January 2014,
IFRS 12 Disclosure of interests in other entities - new standard effective for annual periods beginning on or after 1 January 2014,
Amendments to IFRS 10, IFRS 11 and IFRS 12 - Transition Guidance effective for the annual periods beginning on or after
1 January 2014,
Amendments to IFRS 10, IFRS 12 and IAS 27 - Investment entities effective for the annual periods beginning on or after
1 January 2014,
IAS 27 and IAS 28 - consequential amendments due to above mentioned new consolidation standards - effective for
annual periods beginning on or after 1 January 2014,
IFRS 13 - Fair value measurement - new standard effective for annual periods beginning on or after 1 January 2013,
IAS 1 Presentation of Financial Statements (revised) - amendments effective for annual periods beginning on or after 1
July 2012,
IAS 19 Employee benefits (revised) - amendments effective for annual periods beginning on or after 1 January 2013,
IAS 32 - Financial instruments: Presentation - amendments to application guidance on the offsetting of financial assets
and financial liabilities - effective for annual periods beginning on or after 1 January 2014,
IFRS 7 Financial instruments: Disclosures - offsetting Financial Asset and Financial Liabilities - amendments effective for
annual periods beginning on or after 1 January 2013,
IFRS 7 Financial instruments: Disclosures - amendments requiring disclosures about the initial application of IFRS 9
effective for annual periods beginning on or after 1 January 2015,
Amendments to IFRS 1 - Government Loans - effective for annual periods beginning on or after 1 January 2013,
Annual Improvements to IFRSs 2009-2011 Cycle (IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34 - effective for annual periods
beginning on or after 1 January 2011,
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine - effective for annual periods beginning on or after 1
January 2013.
Management anticipates that all of the relevant pronouncements will be adopted in the Company’s financial statements
for the first period beginning after the effective date of the pronouncement and its application should not have a material
impact on the Company’s financial statements.
Key estimates, judgements and uncertainties in the preparation of the financial statements
During the preparation of the financial statements, the management used certain judgements, estimates and assumptions
that affect the carrying amount of assets and liabilities, disclosures of contingent items at the balance sheet date and
income and expenses for that period.
Estimations have been used, but are not limited on: calculation of depreciation and useful lives, residual value of property,
plant and equipment and tangible assets, impairment losses estimation, value adjustment for inventories and doubtful
receivables, provisions for employee benefits and legal cases. More details on the accounting policies for these estimations
are presented in other parts of notes. Future events and their effects cannot be estimated with a certainty. Due to that
accounting estimates require judgement, and estimates that are used in the preparation of the financial statements are
subject to changes from future events, additional experience, new additional information and changes in environment in
which the Company operates. Actual results can differ from estimated results.
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