Avner Oil - Annual Report 2011 - Delek Energy Systems

AVNER OIL EXPLORATION (LIMITED PARTNERSHIP)NOTES TO THE FINANCIAL STATEMENTSNote 2 – Significant Accounting Policies (Continued):R. Disclosure Of New IFRS's In The Period Prior To Their Adoption:IAS 1 – Presentation of Financial Statements:In June 2011, the IASB published an amendment to IAS 1 ("amendment"). The amendment deals with howcomprehensive income is presented. According to the amendment, items that may be reclassified to profit and loss inthe future (for example, upon de-recognition or settlement) will be presented separately from those items that wouldnever be reclassified to profit and loss.The amendment is applied retrospectively for annual periods beginning on or after January 1, 2013. Earlier applicationis permitted.The partnership is of the opinion that the amendment is not expected to have any material effect on the financialstatements.IAS 32 -Financial Instruments: IFRS 7 - Financial Instruments: Disclosure:In December 2011, the IASB issued amendments to IAS 32 - Offsetting Financial Assets and Financial liabilities("amendments to IAS 32"). The amendments to IAS 32 clarify, inter alia, the meaning of "currently has a legallyenforceable right to set off" ("the right to set off"). According to the amendments to IAS 32, inter alia, the right of setoffmust not only be legally enforceable in the normal course of business, by the parties to a contract, but must also beenforceable in the event of bankruptcy or insolvency of one of the counterparties. The amendments to IAS 32 alsoclarify that an offset must be enforceable immediately, must not be contingent on a future event or periods of time inwhich they will not apply, or may be removed by a future event.At the same time, in December 2011, the IASB issued amendments to IFRS 7 - Offsetting Financial Assets andFinancial Liabilities ("amendments to IFRS 7"). The amendments to IFRS 7 require the partnership, inter alia, todisclose information on rights of set-off and related arrangements (such as collateral agreements), on the compositionof the offset amounts and amounts subject to arrangements that allow offsetting but do not meet all the offsettingcriteria of IAS 32.The amendments to IAS 32 will be applied retrospectively in financial statements for annual periods beginning on orafter January 1, 2014. Earlier application is permitted with the disclosure required under the amendments to IFRS 7 asabove. The amendments to IFRS 7 will be applied retrospectively in financial statements for annual periods beginningon or after January 1, 2013. The partnership is of the opinion that the amendments to IAS 32 are not expected to have amaterial effect on the financial statements.The disclosures required under the amendments to IFRS 7 will be provided in the partnership's financial statements.-09-