2011 Annual Report - OTCIQ.com

and joint operations. The provisions of IFRS 10 form the basis
for determining joint control. If after assessing the particular
facts a joint venture is determined to exist, it must be
accounted for using the equity method. In the case of a joint
operation, however, the attributable shares of assets and liabilities,
and of expenses and income, must be assigned directly
to the equity holder. The application of the new standard will
be mandatory for fiscal years beginning on or after January 1,
2013. Earlier application is permitted as long as the standards
IFRS 10, IFRS 12, IAS 27 and 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 12, “Disclosure of Interests in Other Entities”
IFRS 12 regulates the disclosure requirements for both IFRS 10
and IFRS 11, and was published by the IASB together with
these standards on May 12, 2011. The standard requires entities
to publish information on the nature of their holdings, the
associated risks and the effects on their net assets, financial
position and results of operations. This information is required
for subsidiaries, joint arrangements, associates and unconsolidated
structured units (special-purpose entities). Important
discretionary decisions and assumptions, including any changes
to them, that were made in determining control according
to IFRS 10 and for joint arrangements must also be disclosed.
The application of the new standard will be mandatory for
fiscal years beginning on or after January 1, 2013, with earlier
application permitted. 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 13, “Fair Value Measurement”
In May 2011, the IASB issued the new standard IFRS 13, “Fair
Value Measurement” (“IFRS 13”). The objective of the standard
is to define the term “fair value” and to establish guidance
and disclosure requirements for fair value measurement that
should be applied across standards. In the standard, fair
value is defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between independent market participants at the measurement
CEO Letter
E.ON Stock
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
date. For non-financial assets, the fair value is determined
based on the highest and best use of the asset as determined
by a market participant. IFRS 13 takes effect on January 1, 2013,
and is applied prospectively, with earlier application permitted.
The standard has not yet been transferred by the EU into
European law. E.ON is currently still evaluating the impact on
its Consolidated Financial Statements.
IAS 27, “Separate Financial Statements”
In May 2011, the IASB issued a new version of IAS 27. The new
version now contains regulations for IFRS separate financial
statements only (previously consolidated and separate financial
statements). The application of the new standard is to be
mandatory for fiscal years beginning on or after January 1, 2013.
Earlier application is permitted as long as the standards IFRS 10,
IFRS 11, IFRS 12 and 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 anticipates no effects from the
new standard.
IAS 28, “Investments in Associates and Joint Ventures”
In May 2011, the IASB issued a new version of IAS 28. The new
version now stipulates that in planned partial disposals of
interests in associates and joint ventures, the portion to be sold
must, if it meets the criteria of IFRS 5, “Non-Current Assets
Held For Sale and Discontinued Operations” (“IFRS 5”), be classified
as a non-current asset held for sale. The remaining investment
shall continue to be accounted for using the equity
method. If the sale results in the creation of an associate, that
associate will be accounted for using the equity method.
Otherwise, the rules of IFRS 9 must be followed. The new IAS 28
incorporates the provisions of SIC-13 and removes currently
existing exceptions from the scope of IAS 28. The new version
is to be mandatory for fiscal years beginning on or after
January 1, 2013. Earlier application is permitted as long as the
standards IFRS 10, IFRS 11, IFRS 12 and IAS 27 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 effects of the new standard.
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