ANNUAL REPORT 2009 - GAM Holding AG

IFRIC 17 – Distribution of Non-cash Assets to Owners
This new interpretation, which has been early adopted by the Group, provides guidance on how an entity should measure distributions of noncash
assets, such as property or shares in another entity, to its owners and when that dividend payable should be recognised. For more
information on its impact on the Group’s financial statements see Note 18.
Improvements to IFRSs
A number of amendments to several standards are included in the IASB’s Annual Improvement Project. The amendments had no material
impact on the Group’s financial statements.
NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED
Certain new standards, revisions and interpretations of existing standards were published that must be applied in future financial periods. The
Group chooses not to adopt these in advance. These changes are not expected to have any significant impact on the Group’s consolidated
financial statements, except for the new IFRS 9 standard.
The following standards, revisions and interpretations will be relevant to the Group:
IFRS 9 – Financial Instruments
The new standard, which is the first part of replacement of IAS 39, includes the following changes to current accounting for financial
instruments:
All recognised financial assets are measured at either amortised cost or fair value.
Only a debt instrument that (a) is held within a business model whose objective is to collect the contractual cash flows and (b) has contractual
cash flows that are solely payments of principal and interest may be measured at amortised cost.
If a debt instrument measured at amortised cost is derecognised prior to maturity, the gain or loss has to be presented separately in the income
statement, with an analysis of that gain or loss and the reasons for the sale.
For debt instruments, classification as trading (i.e. at fair value) and a fair value option are available.
Equity instruments are to be measured at fair value, with the recognition of gains and losses in the income statement.
Equity instruments designated as at fair value through other comprehensive income (FVTOCI): Only if an equity instrument is not held for
trading can an irrevocable election be made at initial recognition to measure it at fair value through other comprehensive income (equity),
without any subsequent reclassification to the income statement (i.e. the current requirement to perform an assessment of impairment and to
reclassify cumulative gains and losses on disposal no longer apply).
The new standard will be applicable as of 1 January 2013, with earlier application permitted. The impact of the new standard on the Group’s
financial statements has not yet been assessed.
IAS 24 – Related Party Disclosure
The revised standard will provide a simplified definition of related parties by clarifying its intended meaning and eliminating inconsistencies
from the definition. The revised standard will be applicable as of 1 January 2011.
GAM Holding Ltd. Annual Report 2009
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GROUP FINANCIAL REPORT