+1 - Solvay

IFRS accounting principles
70
The main accounting policies used in preparing these
consolidated financial statements are set out below:
1. Accounting system
Solvay (the “Company”) is a public limited liability
company (société anonyme) governed by Belgian law
and quoted on NYSE Euronext Brussels. The principal
activities of the Company, its subsidiaries and its joint
ventures (jointly the “Group” are described in note 1
to the sectoral information.
The financial statements have been prepared in
accordance with the International Financial Reporting
Standards (IFRS) as adopted by the European Union.
– Standards and Interpretations applicable in 2007
In the current year, the Group has adopted
the following standards and interpretations:
• IFRS 7
Financial Instruments: Disclosures (applicable
for annual reporting periods beginning on or after
1 January 2007);
• IAS 1
Presentation of Financial Statements - Amendment
– Capital disclosures (applicable for annual reporting
periods beginning on or after 1 January 2007).
The impact of the adoption of IFRS 7 and the changes
to IAS 1 has been to expand the disclosures provided
in these financial statements regarding the Group’s
financial instruments and management of capital
(see note 30).
• IFRIC 7
Applying the Restatement Approach under IAS 29,
Financial Reporting in Hyperinflationary Economies
(applicable for annual reporting periods beginning on
or after 1 March 2006);
• IFRIC 8
Scope of IFRS 2 (applicable for annual reporting
periods beginning on or after 1 May 2006);
• IFRIC 9
Reassessment of Embedded Derivatives (applicable
for annual reporting periods beginning on or after
1 June 2006); and
• IFRIC 10
Interim Financial Reporting and Impairment
(applicable for annual reporting periods beginning on
or after 1 November 2006).
The adoption of these Interpretations has not led to
any changes in the Group’s accounting policies.
– Early adoption of Standards and Interpretations
The Group has elected not to adopt any standards
or interpretations in advance of their effective
application dates.
– Standards and Interpretations issued but not
yet applicable
At the date of authorization of these financial
statements, the following standards and interpretations
were issued but not yet applicable:
• Amendment to IFRS 2
Share-based payment transactions (applicable
for annual reporting periods beginning on or after
1 January 2009);
• Amendment to IAS 32
Financial Instruments: Presentation
and IAS 1
Presentation of Financial Statements – Puttable
financial instruments and obligations arising on
liquidation (applicable for annual reporting periods
beginning on or after 1 January 2009);
• IFRS 3
Business Combinations (revised in 2008)
(applicable to business combinations for which
the acquisition date is on or after the beginning of
the first annual reporting period beginning on or
after 1 July 2009);
• IFRS 8
Operating Segments ((applicable for accounting
periods beginning on or after 1 January 2009);
• IAS 23
Borrowing Costs (revised in 2007) (applicable
for accounting periods beginning on or after
1 January 2009);
• IAS 27
Consolidated and Separate Financial Statements
(revised in 2008) (applicable for accounting periods
beginning on or after 1 July 2009);
• IFRIC 11 IFRS 2
Group and Treasury Share Transactions (applicable
for accounting periods beginning on or after
1 March 2007);
• IFRIC 12
Service Concession Arrangements (applicable
for accounting periods beginning on or after
1 January 2008);
• IFRIC 13
Customer Loyalty Programs (applicable
for accounting periods beginning on or after
1 July 2008);
Solvay Global Annual Report 2007