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70<br />
<strong>Solvay</strong> Global Annual Report 2007<br />
IFRS accounting principles<br />
The main accounting policies used in preparing these<br />
consolidated financial statements are set out below:<br />
1. Accounting system<br />
<strong>Solvay</strong> (the “Company”) is a public limited liability<br />
company (société anonyme) governed by Belgian law<br />
and quoted on NYSE Euronext Brussels. The principal<br />
activities of the Company, its subsidiaries and its joint<br />
ventures (jointly the “Group” are described in note 1<br />
to the sectoral information.<br />
The financial statements have been prepared in<br />
accordance with the International Financial Reporting<br />
Standards (IFRS) as adopted by the European Union.<br />
– Standards and Interpretations applicable in 2007<br />
In the current year, the Group has adopted<br />
the following standards and interpretations:<br />
• IFRS 7<br />
Financial Instruments: Disclosures (applicable<br />
for annual reporting periods beginning on or after<br />
1 January 2007);<br />
• IAS 1<br />
Presentation of Financial Statements - Amendment<br />
– Capital disclosures (applicable for annual reporting<br />
periods beginning on or after 1 January 2007).<br />
The impact of the adoption of IFRS 7 and the changes<br />
to IAS 1 has been to expand the disclosures provided<br />
in these financial statements regarding the Group’s<br />
financial instruments and management of capital<br />
(see note 30).<br />
• IFRIC 7<br />
Applying the Restatement Approach under IAS 29,<br />
Financial Reporting in Hyperinflationary Economies<br />
(applicable for annual reporting periods beginning on<br />
or after 1 March 2006);<br />
• IFRIC 8<br />
Scope of IFRS 2 (applicable for annual reporting<br />
periods beginning on or after 1 May 2006);<br />
• IFRIC 9<br />
Reassessment of Embedded Derivatives (applicable<br />
for annual reporting periods beginning on or after<br />
1 June 2006); and<br />
• IFRIC 10<br />
Interim Financial Reporting and Impairment<br />
(applicable for annual reporting periods beginning on<br />
or after 1 November 2006).<br />
The adoption of these Interpretations has not led to<br />
any changes in the Group’s accounting policies.<br />
– Early adoption of Standards and Interpretations<br />
The Group has elected not to adopt any standards<br />
or interpretations in advance of their effective<br />
application dates.<br />
– Standards and Interpretations issued but not<br />
yet applicable<br />
At the date of authorization of these financial<br />
statements, the following standards and interpretations<br />
were issued but not yet applicable:<br />
• Amendment to IFRS 2<br />
Share-based payment transactions (applicable<br />
for annual reporting periods beginning on or after<br />
1 January 2009);<br />
• Amendment to IAS 32<br />
Financial Instruments: Presentation<br />
and IAS 1<br />
Presentation of Financial Statements – Puttable<br />
financial instruments and obligations arising on<br />
liquidation (applicable for annual reporting periods<br />
beginning on or after 1 January 2009);<br />
• IFRS 3<br />
Business Combinations (revised in 2008)<br />
(applicable to business combinations for which<br />
the acquisition date is on or after the beginning of<br />
the first annual reporting period beginning on or<br />
after 1 July 2009);<br />
• IFRS 8<br />
Operating Segments ((applicable for accounting<br />
periods beginning on or after 1 January 2009);<br />
• IAS 23<br />
Borrowing Costs (revised in 2007) (applicable<br />
for accounting periods beginning on or after<br />
1 January 2009);<br />
• IAS 27<br />
Consolidated and Separate Financial Statements<br />
(revised in 2008) (applicable for accounting periods<br />
beginning on or after 1 July 2009);<br />
• IFRIC 11 IFRS 2<br />
Group and Treasury Share Transactions (applicable<br />
for accounting periods beginning on or after<br />
1 March 2007);<br />
• IFRIC 12<br />
Service Concession Arrangements (applicable<br />
for accounting periods beginning on or after<br />
1 January 2008);<br />
• IFRIC 13<br />
Customer Loyalty Programs (applicable<br />
for accounting periods beginning on or after<br />
1 July 2008);