However, the IASB only addresses this subject on a broad basis and describes a range of accounting policies, but does not indicate a preference for any particular alternative. Further evaluation and on-going analysis of the latest literature and a comparison of the practices followed by other market participants in recognising regulatory deferral accounts regulatory account, also see note Revenue recognition under IFRS did not indicate a general trend for the recognition of regulatory assets or liabilities.
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Based on the latest developments in the accounting treatment of regulatory deferral accounts and given the non-applicability of IFRS 14 to EVN, regulatory assets and regulatory liabilities were not recognised. The effect on profit after tax for the reporting year totals EUR — The effect on earnings equals EUR —0. This led to adjustments to the data reported in prior periods. All comparative data in the consolidated financial statements and the consolidated notes were adjusted accordingly. The measurement of fair value is based on a hypothetical transaction. In addition, the disclosures in the notes are now standardised and expanded.
The effects of the prospective initial application of IFRS 13 in the reporting period are reflected, above all, in additional disclosures on financial instruments in these financial statements see note Reporting on financial instruments. The change in IAS 36 Impairment of Assets clarifies the disclosure requirements for the recoverable amount of cash-generating units. In cases where goodwill or an intangible asset with an indefinite useful life that is significant compared to the total carrying amount of good-will or the intangible asset with an indefinite useful life that have been allocated, the recoverable amount must only be disclosed if there is impairment or an increase in value.
The premature application of this clarification had no effect on the disclosures in the consolidated financial statements. The change in IAS 39 Financial Instruments ensures that hedge accounting can be continued under circumstances where a hedge must be novated to a central counterparty as a result of legal regulations.
The premature application of this change had no effect on the consolidated financial statements.
Accounting legislation change – mind the GAAP
The initial obligatory application of the other revised standards and interpretations did not have any impact on the consolidated financial statements. EVN regularly monitors and analyses the effects of the revised standards and interpretations on the presentation of the consolidated financial statements and the notes.
The following standards and interpretations have been issued as at the balance sheet date of the consolidated financial statements by the IASB, adopted by the EU and published in the Official Journal of the EU. EVN does not expect the future, initial application of the above-mentioned new or revised standards and interpretations to have any significant effects on the asset, financial or earnings position. The following standards and interpretations have been issued as at the balance sheet date of the consolidated financial statements by the IASB, but not yet adopted by the EU.
This represents the conclusion of a project started in as a reaction to the financial crisis. The new rules require mandatory application for financial years beginning on or after 1 January ; early application is permitted, but the adoption by the EU is still outstanding. IFRS 9 includes revised guidelines for the classification and measurement of financial assets, expanded rules for the recognition of impairment losses to financial assets and new rules for hedge accounting. Minor effects on the asset, financial and earnings position are also expected in the area of hedge accounting because the new rules are based more on risk management and are therefore likely to result in differences from previous accounting practices.
The impact of the application of IFRS 9 will be evaluated in detail when this standard is adopted into European law. IFRS 14 permits first-time adopters i. The previously issued IFRSs do not provide any guidelines for the accounting treatment of rate-regulated transactions, but a number of countries — including Austria — have issued national rules which require the recognition of regulatory deferral accounts.
According to the prevailing opinion, the recognition of a regulatory asset or a regulatory liability is currently not permitted in financial statements prepared in accordance with IFRS. These respondents note that agricultural businesses in the UK tend to be managed using cost-based financial information.
It advised the FRC that entities engaged in agricultural activities should be permitted an accounting policy choice for their biological assets, between the cost model and fair value model set out in the IFRS for SMEs. The ASB is requesting comment on the proposals for the financial statements of retirement benefit plans, including:. It was also noted that more than half of those responding to this question considered that pension funds should not be included in the definition of a financial institution see question 4 above.
Do you consider that the related party disclosure requirements in Section 33 of FRED 48 are sufficient to meet the needs of preparers and users? In some cases, only on the basis that company law permits non-disclosure of intra-group transactions and therefore accounting standards should not extend this. Some respondents noted that if the review of the Accounting Directives removes the exemption from disclosure of intra-group transactions, amendments will be required. There is then no need to distinguish between other grants and donations.
The Accounting Council advised the FRC that the same accounting may be applied by other wholly-owned entities in a PBE group, to eliminate the need to restate concessionary loans on consolidation. This was designed as a UK specific solution, making use of the timing differences approach that is familiar from FRS 19 Deferred tax , but updating it to achieve an accounting result more consistent with IAS 12 Income Tax, for example by requiring deferred tax to be recognised in relation to revaluations.
They argue that this is consistent with the principles for recognising liabilities. Most respondents took the view that the additional disclosures for financial institutions were a proportionate solution and there seemed to be broad agreement on the content of those disclosures. It was also proposed that early adoption should be limited to those periods beginning after the issue of the standards, and that PBEs cannot apply the standards until a relevant SORP is also available.
Those commenting generally thought that too much restriction had been placed on the ability to early adopt the new standards, and that any restriction should be limited to periods ending after the issuance of the standards.
Accounting legislation change – mind the GAAP
There were also some calls for FRS to be available as soon as possible in order that entities might be able to apply it for December year ends. Some of those doing so provided detailed reasons to support their view, but one theme coming through was that the simplifications proposed might be more suitable to small companies eligible to apply the FRSSE than those that are within the scope of FRS Different people may, of course, take different views of the boundary between necessary and unnecessary complexity.
A significant number of respondents regard any complexity inherent within FRS as necessary to lead to appropriate accounting for transactions that are themselves complex. Do you agree with the proposed amendment to Section 34 Specialised Activities setting out the accounting requirements for grantors of service concession arrangements? If not, why not? You are currently attempting to documents. The maximum number of documents that can be ed at once is In order to allow your request to proceed we have automatically split your selection into separate batches each containing a maximum of documents.
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As proposed in FRED 47 A qualifying entity that is a financial institution should not be exempt from any of the disclosure requirements in either IFRS 7 or IFRS 13; or Alternatively A qualifying entity that is a financial institution should be exempt in its individual accounts from all of IFRS 7 except for paragraphs 6, 7, 9 b , 16, 27A, 31, 33, 36, 37, 38, 39, 40 and 41 and from paragraphs of IFRS 13 all disclosure requirements except the disclosure objectives. Which alternative do you prefer and why?
The main arguments for this approach were that: This will be addressed as part of the consideration of the responses to the insurance discussion paper; and b that the requirement to apply IFRS 8 when providing any segmental information might be counter-productive, because they might be seen as too onerous. Question 4 — Definition of a financial institution Do you agree with the definition of a financial institution? It advised the FRC that: Question 5 — Specialised activities: Agriculture and service concessions In relation to the proposals for specialist activities, the ASB would welcome views on: Question 6 — Retirement benefit plans The ASB is requesting comment on the proposals for the financial statements of retirement benefit plans, including: Question 7 — Related party disclosures Do you consider that the related party disclosure requirements in Section 33 of FRED 48 are sufficient to meet the needs of preparers and users?
Question 8 Do you agree with the effective date? If not, what alternative date would you prefer and why? Question 9 Do you support the alternative view, or any individual aspect of it? Question 1 Do you agree with the proposed additions to Section 28 Employee Benefits? Question 2 Do you agree with the proposed amendment to Section 34 Specialised Activities setting out the accounting requirements for grantors of service concession arrangements? Footnote Association of Chartered Certified Accountants.