Avner Oil - Annual Report 2011 - Delek Energy Systems

AVNER OIL EXPLORATION (LIMITED PARTNERSHIP)NOTES TO THE FINANCIAL STATEMENTSNote 2 – Significant Accounting Policies (Continued):IFRS 11 will be applied retrospectively in financial statements for annual periods beginning on or after January 1, 2013.In the partnership's opinion, Standard 11 is not expected to have any significant effect on the financial statements.IFRS 12 – Disclosure of Interests in Other Entities:IFRS 12 establishes the disclosure requirements for investees, including subsidiaries, joint arrangements, associates, andstructured entities. IFRS 12 expands the disclosure requirements for the judgments and assumptions applied bymanagement in determining whether the entity has control, joint control, or significant influence over an investee, anddetermining the type of joint arrangement. IFRS 12 also provides disclosure requirements for significant investees.The appropriate disclosures will be included in the partnership's financial statements, upon initial application. .IFRS 13 – Fair Value Measurement:IFRS 13 establishes guidelines for fair value measurement, when this measurement is required by internationalstandards. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability inan orderly transaction between market participants at the measurement date. IFRS 13 also defines the characteristics ofmarket participants and states that fair value is based on the assumptions that market participants would use. Accordingto IFRS 13, fair value measurement assumes a transaction taking place in the principal market for the asset or liability,or in the absence of a principal market, in the most advantageous market.IFRS 13 requires maximizing the use of observable inputs compared to the use of unobservable inputs. IFRS 13provides a fair value hierarchy according to the inputs used to determine fair value:Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.Level 3: Inputs that are not based on observable market data (unobservable inputs) (assessment without usingobservable market inputs).IFRS 13 also provides certain disclosure requirements.The new disclosures and measurement of assets and liabilities according to IFRS 13 are required prospectively onlyafter initial application, only for financial statements for annual periods commencing on or after January 1, 2013.Earlier application is permitted. These new disclosures do not apply to the comparative figures. The appropriatedisclosures will be included in the partnership's financial statements with initial application of the Standard.The partnership is considering the possible effects of IFRS 13, however, at this date is unable to determine its effects, ifany, on its financial statements.-22-