DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

More documents

Recommendations

Info

Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 20112. Basis of Preparation(a) Statement of complianceThe consolidated financial statements have been prepared in accordance with Korean International FinancialReporting Standards (‘‘K-IFRS’’), as prescribed in the Act on External Audits of Corporations in the Republic ofKorea.New standards and interpretations not yet adoptedThe following new standards, interpretations and amendments to existing standards have been published andare mandatory for the Group for annual periods beginning after January 1, 2012, and the Group has not earlyadopted them.(i) Amendments to K-IFRS No. 1001, ‘Presentation of Financial Statements’The amendments require presenting in other comprehensive income on the basis of whether they arepotentially reclassifiable to profit or loss subsequently (reclassification adjustments). The amendment ismandatorily effective for annual periods beginning on or after July 1, 2012. Management believes theimpact of this amendment on the Group’s consolidated financial statements is not significant.(ii) K-IFRS No. 1113, ‘Fair Value Measurement’The standard defines fair value and a single framework for fair value, and requires disclosures about fair valuemeasurements. The standard will be applied prospectively for the Group’s annual periods beginning on orafter January 1, 2013. Management believes the impact of this amendment on the Group’s consolidatedfinancial statements is not significant.(iii) Amendments to K-IFRS No. 1019, ‘Employee Benefits’The standard requires recognition of actuarial gains and losses immediately in other comprehensive incomeand to calculate expected return on plan assets based on the rate used to discount the defined benefitobligation. The standard will be applied retrospectively for the Group’s annual periods beginning on or afterJanuary 1, 2013. Management believes the impact of this amendment on the Group’s consolidated financialstatements is not significant.(iv) K-IFRS No.1110, ‘Consolidated Financial Statements’The standard introduces a single control model to determine whether an investee should be consolidated.As a result, the Group may need to change its consolidation conclusion in respect of its investees, which maylead to changes in the current accounting for these investees. The standards are effective for annualperiods beginning on or after January 1, 2013 with early adoption permitted.Upon adoption of the standard, the Group may need to change its consolidation conclusion in respect of itsinvestees as below. The impacts of the adoption cannot be estimated as of December 31, 2012.Consolidating investees that were not previouslyconsolidatedCompanyDoosan Infracore Co., Ltd and Subsidiaries,Doosan Engine Co., Ltd. and Subsidiaries, andDoosan Engineering & Construction Co., Ltd. andSubsidiaries.Management is in the process of evaluating the impact of this amendment on the Group’s consolidatedfinancial statements.14
Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 20112. Basis of Preparation, Continued(a) Statement of compliance, continued(v) K-IFRS No.1111, ‘Joint Arrangements’The standard classifies joint arrangements into two types - joint operations and joint ventures. A jointoperation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. jointoperators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A jointventure is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. jointventurers) have rights to the net assets of the arrangement. The standard requires a joint operator torecognize and measure the assets and liabilities (and recognize the related revenues and expenses) in relationto its interest in the arrangement in accordance with relevant K-IFRSs applicable to the particular assets,liabilities, revenues and expenses. The standard requires a joint venturer to recognize an investment and toaccount for that investment using the equity method. The standards are effective for annual periodsbeginning on or after January 1, 2013 with early adoption permitted. Management believes the impact ofthis amendment on the Group’s consolidated financial statements is not significant.(vi) K-IFRS No.1112, ‘Disclosure of Interests in Other Entities’The standard brings together into a single standard all the disclosure requirements about an entity’s interestsin subsidiaries, joint arrangements, associates and unconsolidated structured entities. The Group iscurrently assessing the disclosure requirements for interests in subsidiaries, interests in joint arrangementsand associates and unconsolidated structured entities in comparison with the existing disclosures. Thestandard requires the disclosure of information about the nature, risks and financial effects of these interests.The standards are effective for annual periods beginning on or after January 1, 2013 with early adoptionpermitted. Management believes the impact of this amendment on the Group’s consolidated financialstatements is not significant.Authorization for issueThe consolidated financial statements were authorized for issue by the Board of Directors on February 4,2013, which will be submitted for approval to the shareholders’ meeting to be held on March 29, 2013.(b) Basis of measurementThe consolidated financial statements have been prepared on the historical cost basis, except for the itemsdescribed otherwise in the related notes.(c) Use of estimates and judgmentsThe preparation of the consolidated financial statements in conformity with K-IFRS requires management tomake judgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets, liabilities, income and expenses. Actual results may differ from theseestimates.Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognized in the period in which the estimates are revised and in any future periods affected.15
Page 1 and 2: DOOSAN HEAVY INDUSTRIES &CONSTRUCTI
Page 3 and 4: Independent Auditors’ ReportBased
Page 6 and 7: Doosan Heavy Industries & Construct
Page 66 and 67:
Doosan Heavy Industries & Construct
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86:
show all

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Create successful ePaper yourself

Delete template?

Save as template?