Hornbach-Baumarkt-AG Group

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Explanatory notes on the principles and methods applied in the consolidated financial statements 93
Amendments to recognition and measurement methods as a result of new standards
Application has been made of all International Financial Reporting Standards and interpretations of the
International Financial Reporting Interpretations Committee (IFRIC) valid and requiring mandatory application
at the balance sheet date, to the extent that such are relevant for the HORNBACH-Baumarkt-AG Group.
The following new standards, revised standards and interpretations required application for the first time in
the 2012/2013 financial year:
• Amendments to IFRS 7 “Disclosures – Transfer of Financial Assets”: The amendments to IFRS 7 involve
extended note disclosure obligations upon transfers of financial assets. This is intended to clarify the nature
of the relationships between financial assets not requiring complete derecognition and the corresponding
financial liabilities. Furthermore, it should be possible to better judge the nature of and in particular
the risks associated with any continuing involvement with derecognized financial assets. The
amendments also require additional disclosures to be made when a disproportionately high number of
transfers with continuing involvement arise, for example at around the end of a reporting period. These
amendments have no implications for the consolidated financial statements of HORNBACH-Baumarkt-AG.
Standards and interpretations not applied prematurely
The IASB has issued the following standards, interpretations, and revisions to existing standards of relevance
to the HORNBACH-Baumarkt-AG Group which only require mandatory application in later financial
years and which the HORNBACH-Baumarkt-AG Group has also not applied prematurely:
• Amendments to IAS 1 “Presentation of Items of Other Comprehensive Income”: These amendments affect
the presentation of other comprehensive income within the statement of comprehensive income. In future,
those items of other comprehensive income that are reclassified at a later date to the income statement
(recycling) must be presented separately from items of other comprehensive income that will never be reclassified.
Where items are recognized on a gross basis, i.e. without netting with deferred tax items, the
deferred taxes should now no longer be recognized as an aggregate total, but rather allocated to the two
groups of items. This amendment requires first-time application in financial years beginning on or after
July 1, 2012. The amendments to the standard will lead to the presentation of the respective items being
adjusted to the new requirements in future consolidated financial statements of HORNBACH-Baumarkt-
AG.
• Amendments to IAS 12 “Recovery of Underlying Assets”: In the case of investment property, it is often
difficult to assess whether existing temporary tax differences will be reversed by further use or upon disposal.
The amendment to IAS 12 clarifies that the measurement of deferred taxes should be based on the
refutable assumption that such items will be reversed by disposal. This amendment requires first-time
application in financial years beginning on or after January 1, 2013. The amendments have no implications
for the consolidated financial statements of HORNBACH-Baumarkt-AG.
• IAS 19 “Employee Benefits” (revised 2011): Alongside more extensive disclosure obligations for employee
benefits, the revised standard has resulted in particular in the following amendments:
There is currently an option as to how unexpected fluctuations in pension obligations, so-called actuarial
gains and losses, may be presented in the financial statements. These may be recognized (a) through
profit or loss in the income statement, (b) under other comprehensive income (OCI) or (c) over time using
the so-called corridor method. To ensure greater transparency and comparability of these items, the revised
version of IAS 19 has eliminated this option. In future, it will only be permitted to recognize these