THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

ductions in future contributions to defined benefit plans are
deemed to be available and provides guidelines as to what impact
minimum funding requirements have on such assets. Application
of IFRIC 14 is mandatory from January 1, 2008, onwards. The
changes have no significant impact on the consolidated financial
statements of Symrise AG.
The following accounting standards became effective in fiscal
year 2008 but have not as yet been applied by the Symrise
Group as their approval by the EU is still outstanding:
IFRIC 12 (“Service Concession Arrangements”) provides clarification
of certain recognition and measurement issues relating to
public sector service concessions granted to private operators.
IFRIC 12 is mandatory from the consolidated 2008 financial statements
onwards. It is not expected that IFRIC 12 will impact the
consolidated financial statements of Symrise AG.
IFRIC 16 (“Hedges of a Net Investment in a Foreign Operation”):
The objective of the interpretation is clarification of two issues
arising within the context of the two standards IAS 21 “The
Effects of Changes in Foreign Exchange Rates” and IAS 39 “Financial
Instruments: Recognition and Measurement” in connection
with accounting for the hedging of foreign currency risks
within an organization and its foreign business operations. IFRIC
16 provides clarification as to what should be considered as a risk
in connection with the hedging of a net investment in a foreign operation
and as to where the hedging instrument to reduce such a
risk may be held within a group of companies. The interpretation
should be applied to fiscal years that commence on or after October
1, 2008. It is not expected that IFRIC 16 will have any impact
on the consolidated financial statements of Symrise AG.
The following new accounting standards have been approved
by the IASB and the IFRIC:
IFRS 1 and IAS 27 (“Cost of an Investment in a Subsidiary,
Jointly Controlled Entity or Associate”): These changes make
it possible for entities that are applying International Financial Reporting
Standards (IFRS) for the first time to recognize the acquisition
cost of an investment in their separate financial statements
either at fair value or at the carrying amount deriving from previous
application of national accounting standards. Mandatory application
of the changes is required for fiscal years commencing on
or after January 1, 2009. No impacts on the consolidated financial
statements of Symrise AG are expected.
IFRS 2 (“Vesting Conditions and Cancellations”) provides clarification
on the definition of “vesting conditions” relating to sharebased
payment transactions and stipulates that all cancellations of
share-based payment plans should be accounted for in the same
manner – irrespective of the party which is responsible for the cancellation.
The mandatory application of the changes to IFRS 2 is required
for the first time for all fiscal years commencing on or after
January 1, 2009. It is not expected that IFRS 2 will impact the consolidated
financial statements of Symrise AG.
IFRS 3 (“Business Combinations”) includes amended provisions
for accounting for business acquisitions. The mandatory application
of the changes to IFRS 3 is required for the first time for
fiscal years commencing on or after July 1, 2009. Impacts on the
Symrise Group are currently being assessed.
IFRS 8 (“Operating Segments”) introduces the “management
approach” for segment reporting. Mandatory application of IFRS
8 is required from January 1, 2009, onwards. The Group currently
provides segment information by division and by geographical region
(see note 5). Apart from the form of presentation, it is not expected
that IFRS 8 will impact the segments reported in the
financial statements of Symrise AG.
The revised version of IAS 1 (“Presentation of Financial Statements:
A Revised Presentation”) contains new provisions for
the presentation of financial statements. In particular, it improves
the possibilities for users to analyze and compare information contained
in the financial statements. Application of the new standard
is mandatory for all fiscal years commencing on or after January 1,
2009. Earlier application is permissible. Impacts on the group consolidated
financial statements are currently being assessed.
The revised version of IAS 23 (“Borrowing Costs”) excludes the
option to recognize borrowing costs in profit or loss and requires
that subject to certain conditions, borrowing costs that are directly
related to the acquisition, construction or production of so-called
“qualifying assets” are to be recognized as forming part of the cost
of such assets. The revised version of IAS 23 becomes mandatory
for the consolidated 2009 financial statements and will result in a
change in the accounting policies for the Group. The impact on
the Symrise Group is currently under assessment.
IAS 27 (“Consolidated and Separate Financial Statements”):
In the revised version of IAS 27, the IASB has made changes to
provisions relating to the accounting for transactions between noncontrolling
and controlling shareholder interests for a group as well
as relating to accounting in cases where control over a subsidiary
100 Annual Report 2008 Symrise AG