Annual Report 2010 - Frauenthal Holding AG

92 Annual Report 2010
Consolidated Financial Statements Frauenthal Holding Group 2010
hedged risk if the functional currency of the foreign operation differs from that of the parent. The presentation currency of
the consolidated financial statements of the parent does not give rise to a risk exposure. Secondly, a hedging instrument
used to hedge a net investment in a foreign operation may be held by any entity within the group. If the investment is disposed
of the amount reclassified from equity to profit or loss in respect of the hedging instrument is the amount required
by IAS 39, whereas IAS 21 is applicable to the underlying transaction. IFRIC 16 is not relevant to the Frauenthal Group.
IFRIC 17 Distributions of Non-cash Assets to Owners
IFRIC 17 was published on 27 November 2008, and was adopted by the EU on 26 November 2009. It is applicable to annual
periods beginning on or after 1 November 2009; early application is permitted. IFRIC 17 deals with issues including
how an entity should measure non-cash assets distributed to its owners as a dividend. The liability to pay a dividend must
be recognised if the declaration of the dividend is approved by the relevant authority, and is no longer at the discretion of
the entity. The liability must be measured at the fair value of the assets to be distributed, and the difference between the
carrying amount of the assets distributed and that of the dividend payable must be recognised in profit or loss. Additional
disclosures in the notes to the accounts are required if the assets to be distributed correspond to the definition of a discontinued
operation (IFRS 5). As there have been no distributions of non-cash assets to the owners, IFRIC 17 is not relevant to
the Frauenthal Group.
IFRIC 18 Transfers of Assets from Customers
IFRIC 18 was published on 29 January 2009, and was adopted by the EU on 27 November 2009. It is applicable to annual
periods beginning on or after 1 November 2009; early application is permitted under some circumstances. IFRIC 18 contains
additional guidance on accounting for transfers of assets from customers. In the opinion of the IASB this is of particular
relevance to utilities. The interpretation clarifies the IFRS treatment of agreements under which an entity receives items of
property, plant and equipment from customers that must be used to connect those customers to a network and provide
them with ongoing access to a supply of commodities such as electricity, gas or water. It also deals with situations in which
an entity receives cash from customers for the acquisition or construction of such items of property, plant and equipment.
The issues addressed by the interpretation are: when the definition of an asset is met; how to measure such an asset on
initial recognition; how to identify the separately identifiable services provided in exchange for the transferred asset; when
to recognise revenue; and how the entity should account for a transfer of cash from a customer. IFRIC 18 is not relevant to
the Frauenthal Group.
Amendment to IAS 39 Eligible Hedged Items
This amendment to IAS 39 was published on 31 July 2008, and is applicable to annual periods beginning on or after 1
July 2009. It was adopted by the EU on 15 September 2009. The main purpose of the amendment is to provide additional
guidelines for the designation of hedges, as there were inconsistencies in practice, particularly with regard to the treatment
of a one-sided risk and the treatment of inflation in a hedging transaction. This amendment to IAS 39 is not relevant to the
Frauenthal Group.
IFRS 1 First Time Adoption of IFRS (revised in 2008)
The IASB published a revised version of IFRS 1 First Time Adoption of IFRS on 27 November 2008, and this was adopted by
the EU on 25 November 2009. This version replaced the current IFRS 1, and is applicable to companies adopting IFRS for
the first time on 1 January 2010 and thereafter. The changes only concern the formal structure of IFRS 1, and there are no
substantive amendments. The general and specific rules contained in the standard have been separated from each other, as
the many amendments made to accommodate new or amended IFRSs had made the previous IFRS 1 (rev. 2003) increasingly
complex and unwieldy. The main body of the standard now contains the general rules such as its scope, and recognition
and measurement, while the specific rules on exemptions from some IFRSs are set out in the various annexes. The aim of the