2011 Annual Report - OTCIQ.com

90 Notes
According to the amendment, such an entity is now permitted
to present the benefit of such a prepayment as an asset where
applicable. The amendment has been transferred by the EU
into European law and thus it is to be applied for fiscal years
beginning on or after January 1, 2011. This will have no impact
on E.ON’s Consolidated Financial Statements.
IFRIC 19, “Extinguishing Financial Liabilities with
Equity Instruments”
IFRIC 19, “Extinguishing Financial Liabilities with Equity Instruments”
(“IFRIC 19”), was published in November 2009. IFRIC 19
clarifies the accounting treatment of financial liabilities that
are settled through the transfer of equity instruments. The
financial instruments issued are deemed part of the “consideration
paid” as defined by IAS 39.41. The borrower must therefore
fully or partially derecognize the liability. Any difference
between the carrying amount of the financial liability thus
(partially) extinguished and the initial measurement amount
of the equity instruments issued is recognized in income.
IFRIC 19 is effective for fiscal years beginning on or after July 1,
2010. The new interpretation has been transferred by the
EU into European law. IFRIC 19 has no impact on E.ON’s Consolidated
Financial Statements.
Standards and Interpretations Not Yet Applicable
in 2011
The IASB and the IFRIC have issued the following additional
standards and interpretations. These standards and interpretations
are not being applied by E.ON in the 2011 fiscal year
because adoption by the EU remains outstanding at this time
for some of them, or because their application is not yet
mandatory:
IFRS 9, “Financial Instruments”
In November 2009, the IASB issued the new standard IFRS 9,
“Financial Instruments” (“IFRS 9”). Under IFRS 9, all financial
instruments currently within the scope of IAS 39 will henceforth
be subdivided into only two classifications: financial
instruments measured at amortized cost and financial instruments
measured at fair value. In October 2010, the IASB issued
an extended version of IFRS 9. This version contains additional
requirements for the accounting of financial liabilities. The
application of IFRS 9 was to be mandatory for fiscal years
beginning on or after January 1, 2013. In December 2011, however,
the IASB published an amendment deferring mandatory
first-time application to fiscal years beginning on or after
January 1, 2015. Earlier application is permitted. The IASB also
amended IFRS 7 in the context of such early application:
depending on the actual date on which an entity initially applied
IFRS 9, there are different requirements regarding the presentation
of a comparative period and the associated disclosures
in the notes. The standard has not yet been transferred by the
EU into European law. E.ON is currently evaluating the impact
on its Consolidated Financial Statements.
IFRS 10, “Consolidated Financial Statements”
In May 2011, the IASB issued the new standard IFRS 10, “Consolidated
Financial Statements” (“IFRS 10”). This IFRS replaces
the existing guidance on control and consolidation contained
in IAS 27, “Consolidated and Separate Financial Statements,”
and in SIC-12, “Consolidation—Special Purpose Entities” (“SIC-12”).
IFRS 10 establishes a uniform definition of the term “control,”
with greater emphasis on the principle of substance over form
than in the past. The new standard can thus give rise to an
altered scope of consolidation. IFRS 10 is generally to be applied
retrospectively for fiscal years beginning on or after January 1,
2013. Earlier application is permitted as long as the standards
IFRS 11, “Joint Arrangements” (“IFRS 11”), IFRS 12, “Disclosure
of Interests in Other Entities” (“IFRS 12”), IAS 27, “Separate
Financial Statements” (“IAS 27”), and IAS 28, “Investments in
Associates and Joint Ventures” (“IAS 28”), are also being applied
at the same time. The standard has not yet been transferred
by the EU into European law. E.ON is currently evaluating the
impact on its Consolidated Financial Statements.
IFRS 11, “Joint Arrangements”
In May 2011, the IASB issued the new standard IFRS 11. It
replaces IAS 31, “Interests in Joint Ventures” (“IAS 31”), and SIC-13,
“Jointly Controlled Entities—Non-Monetary Contributions
by Venturers” (“SIC-13”). The standard will in future distinguish
between two types of joint arrangements: joint ventures