Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Notes to the Consolidated
Financial Statements
Our Performance
1 Accounting policies
General information
Euromoney Institutional Investor PLC (the ‘company’) is a company
incorporated in the United Kingdom (UK).
requirements for classifying and measuring financial assets and is
likely to affect the group’s accounting for its financial assets. This
standard has not yet been endorsed by the EU. The group is yet to
assess IFRS 9’s full impact.
● IFRS 10, ‘Consolidated Financial Statements’ (effective for accounting
The group financial statements consolidate those of the company and its
subsidiaries (together referred to as the ‘group’) and equity-account the
group’s interest in associates. The parent company financial statements
present information about the entity and not about its group.
The group financial statements have been prepared and approved by the
directors in accordance with the International Financial Reporting Standards
(IFRS) adopted for use in the European Union and, therefore, comply with
Article 4 of the EU IAS Regulation. The company has elected to prepare its
parent company financial statements in accordance with UK GAAP.
Judgements made by the directors in the application of those accounting
policies that have a significant effect on the financial statements, and
estimates with a significant risk of material adjustment in the next year,
are discussed in note 2.
(a) Relevant new standards, amendments and interpretations issued
and applied in the 2012 financial year:
● IAS 24 (revised), ‘Related party disclosures’, effective for accounting
periods beginning on or after January 1 2011.
● IFRIC 14, ‘Prepayments of a Minimum Funding Requirement
Improvements to IFRSs 2010’, effective for accounting periods
beginning on or after January 1 2011.
● Amendments to IFRS 7 ‘Financial Instruments: Disclosures’, effective
for accounting periods beginning on or after July 1 2011.
● Improvements to IFRSs (2010), effective for accounting periods
beginning on or after January 1 2011. Key amendments include:
IFRS 1 – accounting policy changes in year of adoption and
amendments to deemed cost (revaluation basis, regulatory assets);
IFRS 3/IAS 27 – clarification of transition requirements, measurement
of non-controlling interests, unreplaced and voluntarily replaced
share-based payment awards; financial statement disclosures –
clarification of content of statement of changes in equity (IAS 1),
financial instrument disclosures (IFRS 7) and significant events and
transactions in interim reports (IAS 34).
None of these newly adopted standards have had a material impact on
the group’s results in this financial year.
(b) Relevant new standards, amendments and interpretations issued
but effective in future accounting periods:
● IFRS 9 ‘Financial Instruments’ issued in October 2010 (effective for
accounting periods beginning on or after January 1 2015). This
standard is the first step in the process to replace IAS 39 ‘Financial
Instruments: recognition and measurement’. IFRS 9 introduces new
periods beginning on or after January 1 2013). This standard builds
on existing principles by identifying the concept of control as the
determining factor in whether an entity should be included within
the consolidated financial statements of the parent company and
provides additional guidance to assist in the determination of control
where this is difficult to assess. This standard has not yet been
endorsed by the EU. The group is yet to assess IFRS 10’s full impact.
● IFRS 11, ‘Joint Arrangements’ (effective for accounting periods
beginning on or after January 1 2013). This standard replaces
IAS 31, ‘Interests in Joint Ventures’ and requires a party to a joint
arrangement to determine the type of joint arrangement in which it
is involved by assessing its rights and obligations and then account
for those rights and obligations in accordance with that type of
joint arrangement. A joint venturer applies the equity method of
accounting for its investment in a joint venture in accordance with
IAS 28 ‘Investments in Associates and Joint Ventures (2011)’. Unlike
IAS 31, the use of ‘proportionate consolidation’ to account for joint
ventures is not permitted.
● IFRS 12, ‘Disclosure of Interests in Other Entities’ (effective for
accounting periods beginning on or after January 1 2013). This
standard includes the disclosure requirements for all forms of
interests in other entities, including joint arrangements, associates,
special purpose vehicles and other off balance sheet vehicles. This
standard has not yet been endorsed by the EU. The group is yet to
assess IFRS 12’s full impact.
● IFRS 13, ‘Fair Value Measurement’ (effective for accounting periods
beginning on or after January 1 2013). This standard aims to improve
consistency and reduce complexity by providing a precise definition
of fair value and a single source of fair value measurement and
disclosure requirements for use across IFRSs. The requirements, which
are largely aligned between IFRSs and US GAAP, do not extend to the
use of fair value accounting but provide guidance on how it should
be applied where its use is already required or permitted by other
standards within IFRSs or US GAAP. This standard has not yet been
endorsed by the EU. The group is yet to assess IFRS 13’s full impact.
● IAS 19 (revised), ‘Employee Benefits’, issued in June 2011 (effective
for accounting periods beginning on or after January 1 2013). The
impact on the group will be as follows: to eliminate the corridor
approach and recognise all actuarial gains and losses in Other
Comprehensive Income as they occur; to immediately recognise all
past service costs; and to replace interest cost and expected return on
plan assets with a net interest amount that is calculated by applying
the discount rate to the net defined liability (asset). The group is yet
to assess the full impact of the amendments.
Notes to the Consolidated Financial Statements
Company Accounts Group Accounts Our Governance
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