2005 Annual Report Julius Baer Holding Ltd. - GAM Holding AG

Notes
International Financial Reporting Standards
(IFRS) recently issued but not yet implemented,
interpretations and revisions
Numerous new standards, revisions and interpretations
of existing standards were published that must
be applied for financial years beginning on or after
1 January 2006. The Julius Baer Group chooses not to
adopt these in advance. The standards, revisions and
interpretations that will be relevant to the Group are
as follows:
IAS 19 (revised) – Employee Benefits
Actuarial gains and losses arising as a result of
changes in actuarial assumptions can be recognized
in shareholders’ equity in the period in which they
occur. The Julius Baer Group will not make use of this
alternative, opting instead for actuarial gains and
losses that exceed the greater of 10% of the present
value of the plan obligation and 10% of the fair value
of plan assets to be systematically recognized in the
income statement over the expected average remaining
working lives of employees participating in the
plan. Moreover, the disclosure requirements are
being expanded. The Julius Baer Group will adopt the
revised standard as of 1 January 2006.
IFRS 7 Financial Instruments: Disclosures and Amendment
to IAS 1 – Presentation of Financial Statements:
Capital Disclosures
IFRS 7 replaces the existing standards IAS 30, Disclosures
in the Financial Statements of Banks and Similar
Financial Institutions, and IAS 32, Financial Instruments:
Disclosure and Presentation, and enters into
force on 1 January 2007.
The objective of the new disclosure requirements is
to convey relevant decision-making information about
the amount, timing and probability of future cash
flows resulting from financial instruments.
80 JULIUS BAER GROUP
The Group is currently analyzing the consequences of
IFRS 7. The standard will be adopted by the Group
for the financial year beginning on 1 January 2007.
IAS 39 (revised) – Fair Value Option
The revised standard changes the definition of “financial
assets and financial liabilities at fair value
through profit or loss” and limits the possibility of
classifying financial instruments in this category. The
Julius Baer Group is convinced that this change will
not have a material influence on classification of the
financial instruments since the Group is able to fulfill
the revised criteria for classifying financial instruments
as “at fair value through profit or loss.” The
revised standard will be adopted as of 1 January
2006.