Management Report - Beursgorilla

ArcelorMittal Annual Report 200908 Consolidated Financial StatementsNotes to the Consolidated Financial Statements continuedArcelorMittal and Subsidiaries(millions of U.S. dollars, except share and per share data)IFRS 1 (revised), “First Time Adoption ofInternational Financial Reporting Standards”and IAS 27 (revised), “Consolidated andSeparate Financial Statements”In May 2008, the IASB issued revisions toIFRS 1, “First Time Adoption of InternationalFinancial Reporting Standards” and IAS 27,“Consolidated and Separate FinancialStatements.” The revisions allow first-timeadopters to use a deemed cost of eitherfair value or the carrying amount undera previous accounting practice to measurethe initial cost of investments insubsidiaries, jointly controlled entitiesand associates in the separate financialstatements. The amendments also removethe definition of the cost method from IAS27 and replace it with a requirement topresent dividends as income in the separatefinancial statements of the investor. Therevisions of IFRS 1 are effective for annualperiods beginning on or after July 1, 2009but are not applicable to the Company as ithas previously adopted IFRS. The revisionsof IAS 27 are effective for annual periodsbeginning on or after July 1, 2009 but arenot expected to have a significant impacton its consolidated financial statements.IFRS 2 (revised), “Share-based Payment”In June 2009, the IASB issued amendmentsto IFRS 2, “Share-based Payment”. Theseamendments clarify the scope of IFRS 2,as well as the accounting for cash-settled(by the parent) share-based paymenttransactions in the separate or individualfinancial statements of a subsidiaryreceiving the goods or services whenanother subsidiary or shareholder has theobligation to settle the award. The revisionsto IFRS 2 are effective for annual periodsbeginning on or after January 1, 2010.The Company does not expect that theamendments will have a significant impacton its consolidated financial statements.The amendments to IFRS 2 have not yetbeen endorsed by the EU.IFRS 3 (revised), “Business Combinations”and IAS 27 (revised), “Consolidated andSeparate Financial Statements”In January 2008, the IASB issued revisionsto IFRS 3, “Business Combinations” andIAS 27, “Consolidated and SeparateFinancial Statements” which are effectivefor any transactions with acquisition datesthat are on or after the beginning of thefirst annual reporting period beginningon or after July 1, 2009. Among otherchanges, the revisions will require theacquirer to expense direct acquisition costsas incurred; to revalue to fair value anypre-existing ownership in an acquiredcompany at the date on which theCompany takes control, and record theresulting gain or loss in net income; torecord in net income adjustments tocontingent consideration which occur aftercompletion of the purchase price allocation;to record directly in equity the effect oftransactions after taking control of theacquiree which increase or decrease theCompany’s interest but do not affectcontrol; to revalue upon divesting controlany retained shareholding in the divestedcompany at fair value and record theresulting gain or loss in net income;and to attribute to non-controllingshareholders their share of any deficit in theequity of a non wholly-owned subsidiary.The Company does not currently expectthat the application of IFRS 3 (revised)and IAS 27 (revised) will have a significantimpact on its financial statements, but willevaluate the impact for each businesscombination that occurs.IFRS 5 (revised), “Non-current AssetsHeld for Sale and Discontinued Operations”In May 2008, the IASB issued revisions toIFRS 5, “Non-current Assets Held for Saleand Discontinued Operations” which areeffective for annual periods beginning on orafter July 1, 2009. The amendment clarifiesthat all of a subsidiary’s assets and liabilitiesshould be classified as held for sale if apartial disposal sale plan will result in lossof control. Relevant disclosure should alsobe made for this subsidiary if the definitionof a discontinued operation is met.The Company does not expect that theamendment will have a significant impacton its consolidated financial statements.IFRS 9, “Financial Instruments”In November 2009, the IASB issued IFRS 9,“Financial Instruments” as the first step inits project to replace IAS 39, “FinancialInstruments: Recognition and Measurement”.IFRS 9 introduces new requirementsfor classifying and measuring financialinstruments, including:• The replacement of the multipleclassification and measurement modelsin IAS 39, “Financial Instruments:Recognition and Measurement”with a single model that has only twoclassification categories: amortizedcost and fair value• The replacement of the requirementto separate embedded derivatives fromfinancial asset hosts with a requirementto classify a hybrid contract in its entiretyat either amortized cost or fair value• The replacement of the cost exemptionfor unquoted equities and derivatives onunquoted equities with guidance on whencost may be an appropriate estimate offair value.This standard is effective for annual periodsbeginning on or after January 1, 2013, withearlier adoption permitted. IFRS 9 has notyet been endorsed by the EU.IAS 24, “Related Party Disclosures”In November 2009, the IASB amendedIAS 24, “Related Party Disclosures”for annual periods beginning on or afterJanuary 1, 2011, with earlier applicationpermitted. The revisions simplify thedisclosure requirements for governmentrelatedentities and clarify the definition ofa related party. The amendments to IAS 24have not yet been endorsed by the EU.