ONE ROOF

Notes to the Consolidated Financial Statements
144 Annual Report 2009
IFRS 9 Financial Instruments:
The IASB issued IFRS 9 on November 12, 2009. This represents
the first phase of a three-phase project to replace IAS 39 and
relates to the classification and measurement of financial instruments.
As the remaining phases are completed, new requirements
will be incorporated into IFRS 9 and the corresponding
parts of IAS 39 withdrawn. Under the new standard,
there will be only two measurement categories for financial instruments:
• At fair value through profit or loss;
• Amortized cost.
For an investment in an equity instrument not held for trading,
the entity may make an irrevocable election at the time of initial
recognition to present subsequent changes in the fair value of
the investment, including proceeds on disposal, in other comprehensive
income. The sole exception from this rule relates to
dividends received from such investments, which are recognized
in profit or loss.
The standard is applied retrospectively for all financial assets
at the date of initial application. The date of initial application is
the first fiscal year beginning on or after January 1, 2013. EU
endorsement is still pending. The new standard will result in a
reclassification of financial instruments at HOCHTIEF. Due to
measurement at fair value through profit or loss, changes in
the fair value of financial instruments will have a greater impact
on the Statement of Earnings.
The IASB has also published an omnibus standard as part
of its annual improvements process. This compiles small, nonurgent
but necessary changes to various individual standards
in a single new pronouncement. Most of the changes apply to
fiscal years beginning on or after January 1, 2010 and will not
have any material impact on HOCHTIEF. EU endorsement is
still pending.
IFRIC 12 Service Concession Arrangements:
IFRIC 12 closes a gap in IFRS as regards accounting for rights
and obligations under service concessions granted to privatesector
operators by government or government agencies in
order to provide public services. The Interpretation solely addresses
the accounting by private-sector operators. The applicable
accounting treatment depends on whether the operator
has an unconditional contractual right to payment or merely
a right to charge based on the usage of services. In the first
instance, the “financial asset model” is applied and a financial
asset is recognized. In the second, the operator acquires an
intangible asset permitting it to operate public infrastructure;
that is, the “intangible asset model” is applied. In instances
where an operator receives a fixed amount from the grantor
and a right to charge users so that the ability to earn any excess
over the fixed amount depends on intensity of use, a financial
asset is recognized for the fixed amount and an intangible
asset is recognized for the right to charge users. IFRIC
12 was intended to be effective for annual periods beginning
on or after January 1, 2008. The EU has endorsed the standard
with a different date of initial application to that stipulated
by the IASB. IFRIC 12 consequently applies in the first fiscal
year beginning after March 29, 2009. For HOCHTIEF, applying
this interpretation will essentially only affect accounting for
service concessions to which the intangible asset model applies
(for example, in the case of toll roads and airports). Application
of the new rules to such concessions may change the
allocation of contract net profit among individual reporting periods
during the operating phase. Service concessions that
come under the financial asset model (for example, in the case
of schools) are already largely accounted for at HOCHTIEF in
accordance with the new rules.
IFRIC 16 Hedges of a Net Investment in a Foreign
Operation:
This interpretation clarifies issues relating to net investments in
foreign operations. It stipulates that hedge accounting may be
applied only to foreign exchange differences arising between
the functional currency of the foreign operation and the (immediate,
intermediate or ultimate) parent entity’s functional currency.
Under the prior rules applicable in the EU, the hedging
instrument may be held by any entity within the group—except
the foreign operation being hedged. IFRIC has now lifted this
restriction. IFRIC 16 is applicable in the EU for the first fiscal
year beginning after June 30, 2009. The clarifications will not
materially affect financial reporting at HOCHTIEF.