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Ambrian Capital plcAnnual Report & Accounts 2009OverviewBusiness reviewGovernanceFinancial statements 21Shareholder information2 Accounting policies (continued)2.2 Changes in accounting policies (continued)IFRS 9 Financial InstrumentsIFRS 9 will eventually replace IAS 39 in its entirety. However, the process has been divided into three main components: Classification andmeasurement; impairment; and, hedge accounting. As each phase is completed, it will delete the relevant portions of IAS 39 and create newchapters in IFRS 9.IFRS 9 as issued on 12 November 2009 addresses the classification and measurement of financial assets only. A financial asset should be:• Classified on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of thefinancial asset;• measured at amortised cost if it meets two conditions: (a) the entity’s business model is to hold the financial asset in order to collect thecontractual cash flows; and, (b) the contractual terms of the asset give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal outstanding; and,• subsequently measured at amortised cost or fair value depending on the business model of the entity and the terms of the instrument.The following new standards, interpretations and amendments, which have not been applied in these financial statements, are not expected tohave an effect on the Group’s future financial statements:• Revised IFRS 3 Business Combinations (effective for accounting periods beginning on or after 1 July 2009)• Amendments to IAS 27 Consolidated and Separate Financial Statements (effective for accounting periods beginning on or after 1 July 2009)• Amendment to IAS 39 Financial Instruments: Recognition and Measurement: Eligible Hedged Items (effective for accounting periodsbeginning on or after 1 July 2009)• IFRIC 17 Distributions of Non-cash Assets to Owners (effective for accounting periods beginning on or after 1 July 2009)• Revised IFRS 1 First-time Adoption of international Financial Reporting Standards (effective for accounting periods beginning on or after1 July 2009)• IFRIC 18 Transfer of Assets from Customers (effective for accounting periods beginning on or after 1 July 2009)• Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2010)• Group Cash-settled Share-based Payment Transactions (Amendments to IFRS 2) (effective for accounting periods beginning on or after1 January 2010)• Additional Exemptions for First-time Adopters (Amendments to IFRS 1) (effective for accounting periods beginning on or after 1 January 2010)• Classification of Rights Issues (Amendment to IAS 32) (effective for accounting periods beginning on or after 1 January 2010)• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective for accounting periods beginning on or after 1 January 2010)• Amendments to IFRIC 14 IAS 19 – Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective foraccounting periods beginning on or after 1 January 2011)The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on theconsolidated financial statements of the Group except for additional disclosures.2.3 Prior year adjustmentThe Group has restated its prior year consolidated statement of comprehensive income, consolidated statement of financial position andconsolidated statement of cash flows to reflect the share-based payments charge on options granted by the Employee Benefit Trust.This charge in relation to 2008 amounted to £1,127,194 and has been included within administrative expenses. This increased the loss for theyear by £1,127,194 with a corresponding adjustment to share-based payment reserve and this has £nil impact on total equity. Further detailsof the charge are provided in note 21.The charge for previous years amounted to £592,986 and has been treated as an adjustment between the opening balances on retainedearnings and the share-based payments reserve in 2008.2.4 Basis of consolidationWhere the Company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business soas to obtain benefits from its activities, it is classified as a subsidiary. The consolidated financial statements present the results of the Companyand its subsidiaries (“the Group”) as if they formed a single entity. Intercompany transactions and balances between Group companies aretherefore eliminated in full.