Annual Report 2010 - Enel.com

classified as equity if (and only if) the entity offers the
rights, options or warrants pro rata to all existing holders
of its equity instruments (other than derivatives)
in the same class for a fixed amount of currency. The
changes shall be applied retrospectively as from periods
beginning on or after January 31, 2010. The application
of the amendments is not expected to have a
significant impact for the Group.
In 2009 and 2010, the International Accounting Standards
Board (IASB) and the International Financial Reporting
Interpretations Committee (IFRIC) also published new
standards and interpretations that as of December 31,
2010, had not yet been endorsed by the European Commission.
The standards are set out below:
> “IFRS 9 - Financial instruments”, issued in November
2009 and revised in October 2010: the standard is the
first of three phases in the project to replace IAS 39. The
standard establishes new criteria for the classification
of financial assets and liabilities, based on the business
model of the entity and the cash flow characteristics of
the financial assets. The new standard requires financial
assets and liabilities to be measured initially at fair
value plus any transaction costs directly attributable
to their assumption or issue. Subsequently, they are
measured at fair value or amortized cost, unless the fair
value option is applied. As regards equity instruments
not held for trading, an entity can make an irrevocable
election to measure them at fair value through other
comprehensive income. Any dividend income shall be
recognized through profit or loss.
The new standard will take effect, subject to endorsement,
for periods beginning on or after January 1,
2013. The Group is assessing the potential impact of
the future application of the measures.
> “Amendments to IFRS 7 - Financial instruments: Disclosures”,
issued in October 2010; the amendments require
additional disclosures to assist users of financial
statements to assess the exposure to risk in the transfer
of financial assets and the impact of such risks on
the company’s financial position. The new standard introduces
new disclosure requirements, to be reported
in a single note, concerning transferred financial assets
that have not been derecognized and transferred assets
in which the company has a continuing involvement
as of the balance sheet date. The amendments
to IFRS 7 will apply prospectively, subject to endorsement,
for periods beginning on or after January 1,
168 Enel Annual Report 2010 Consolidated financial statements
2012. The Group is assessing the potential impact of
the future application of the measures.
> “Improvements to IFRS”, issued in May 2010: the changes
regard improvements to existing standards. The main
developments regard:
- “IFRS 3 - Business combinations”, as revised in 2008:
specifies that non-controlling interests in an acquiree
are present ownership interests that entitle their holders,
in the event of the liquidation of the company, to
a proportionate share of the entity’s net assets. These
must be measured at fair value or as a proportionate
share of the acquiree’s net identifiable assets. All other
components classifiable as non-controlling interests
but which do not have the above characteristics (for
example, share options, preference shares, etc.), shall
be measured at fair value at the acquisition date unless
another measurement basis is required by another
IFRS. These amendments will apply, subject to endorsement,
for periods beginning on or after July 1, 2010;
- “IFRS 7 - Financial instruments: Disclosures”: clarifies
the disclosures required in the case of renegotiated
financial instruments as well as disclosure requirements
for credit risk. These amendments will apply,
subject to endorsement, for periods beginning on or
after January 1, 2011;
- IAS 1 - Presentation of financial statements: specifies
that the reconciliation of the carrying amount at the
start and end of the period for each component of
“other comprehensive income” shall be presented either
in the statement of changes in equity or in the
notes to the financial statements. In this regard, with
the introduction of “Revised IAS 27 - Consolidated
and separate financial statements”, the standard had
been modified, calling for the reconciliation to be
presented in the statement of changes in equity. The
amendments introduced in May 2010 shall apply,
subject to endorsement, for periods beginning on or
after January 1, 2011;
- “IAS 34 - Interim financial reporting”: the standard
has been amended to add disclosure requirements
for interim financial reports concerning, in particular,
financial assets and liabilities. For example, it now
requires information on changes in the business or
in economic conditions that have had an impact on
the fair value of financial assets/liabilities measured
at fair value or using the amortized cost method. The
amendments shall apply, subject to endorsement, for
periods beginning on or after January 1, 2011.