value
–
–
23
–
–
–
–
– loan
impairment
recoveries and
other credit risk
provisions
23 – – – – –
–
1
Included in ‘Available-for-sale investments: fair value gains/(losses)’ and ‘Exchange differences’ in the
consolidated statement of comprehensive income.
3070 Chapter 37
4.3.11
Changes in classification of financial assets arising from changes in
use
In the Extract below, Deutsche Bank discloses changes in classification of certain
financial assets due to a change in purpose or use. [IAS 34.15B(l)].
Extract 37.12: Deutsche Bank Aktiengesellschaft (interim ended March 2016)
Information on the Consolidated Balance Sheet (unaudited) [extract]
Amendments to IAS 39 and IFRS 7, “Reclassification of Financial Assets” [extract]
Under the amendments to IAS 39 and IFRS 7, issued in October 2008, certain financial assets were reclassified in
the second half of 2008 and the first quarter 2009 from the financial assets at fair value through profit or loss and the available for sale classifications into the loans classification. No reclassifications have been made since the first
quarter 2009.
The Group identified assets, eligible under the amendments, for which at the reclassification date it had a clear change
of intent and ability to hold for the foreseeable future rather than to exit or trade in the short term. The reclassifications were made at the fair value of the assets at the reclassification date.
[...]
Carrying values and fair values by asset type of assets reclassified in 2008 and 2009
Mar 31, 2016
Dec 31, 2015
Carrying
Carrying
In € m.
value Fair
value value Fair
value
Trading assets reclassified to loans:
Securitization
assets
1,147 1,039 1,382
1,346
Debt
securities
255 264 396 405
Loans
814 784 916
857
Total trading assets reclassified to loans
2,216
2,087 2,695 2,608
Financial assets available for sale reclassified to loans:
Securitization
assets
1,262 1,176 1,540
1,470
Debt
securities
0
0
168
179
Total financial assets available for sale reclassified
to loans
1,262 1,176 1,708 1,648
Total financial assets reclassified to loans
3,4781 3,263
4,4031 4,256
1 There is an associated effect on the carrying value from effective fair value hedge accounting for interest rate
risk to the carrying value of the reclassified assets shown in the table above. This effect increases carrying value
by €4 million and decreases by €3 million as at March 31, 2016 and December 31, 2015, respectively.
4.3.12 Contingent
liabilities
In the Extract below, Downer discloses changes in its contingent liabilities during the
interim period in the notes to the condensed consolidated half-year financial report.
[IAS 34.15B(m)].
Interim financial reporting 3071
Extract 37.13: Downer EDI Limited (interim ended December 2016)
Notes to the condensed consolidated financial report for the half-year ended 31 December 2016 [extract]
D5 Contingent liabilities [extract]
vi)
Ground subsidence at the Waratah Train Maintenance Centre located on Manchester Road, Auburn (‘AMC’)
has been identified. The design and construction of the AMC formed part of the Waratah Train Project, with
Reliance Rail contracting Downer to design and build the AMC. In turn, Downer subcontracted this work to
John Holland Pty Ltd. The design and construction of the areas in which subsidence has been observed
formed part of the subcontractor’s design and construct obligations. Investigations into the causes of the
subsidence continue with an estimated remediation cost in the order of $70 million. While it is too early to
reliably estimate the total cost of the remediation, in the opinion of the Directors, there is no material
exposure to either Downer EDI Rail Pty Limited or Downer EDI PPP Maintenance Pty Limited arising from
the subsidence, based on the fact that there are a range of recovery options being pursued.
[...]
viii)
On 16 September 2015, the Group announced that it had terminated a contract with Tecnicas Reunidas S.A.
(“TR”) following TR’s failure to remedy a substantial breach of the contract and that the Group would be
pursuing a claim against TR in the order of $65 million. Downer has since demobilised from the site and has
commenced a claim that will be determined via an arbitration process, with a hearing date scheduled for
June 2018. TR has initiated a counter-claim. The Directors are of the opinion that disclosure of any further
information relating to this matter would be prejudicial to the interests of the Group.
4.3.13
Accounting policies and methods of computation
In the Extract below, Daimler AG discloses changes to the accounting policies applied
in the current interim period. [IAS 34.16A(a)]. Using the guidance in IAS 8, Daimler AG
provides quantitative information for the first-time adoption of IFRS 9 – Financial
Instruments – and IFRS 15 – Revenue from Contracts with Customers.
Extract 37.14: Daimler AG (interim ended June 2018)
Notes to the Interim Consolidated Financial Statements [extract]
1.
Presentation of the Interim Consolidated Financial Statements [extract]
IFRSs initially applied in the reporting period [extract]
Application of IFRS 15 Revenue from Contracts with Customers. In May 2014, the IASB published the standard
IFRS 15. It replaces existing guidance for revenue recognition, including IAS 18 Revenue, IAS 11 Construction
Contracts and IFRIC 13 Customer Loyalty Programmes. The new standard lays down a comprehensive framework
for determining in which amount and at which date revenue is recognized. The new standard specifies a uniform,
five-step model for revenue recognition, which is generally to be applied to all contracts with customers.
Daimler applies IFRS 15 for the first time for the financial year beginning on January 1, 2018. The first-time
adoption has been conducted retrospectively. The figures reported for the previous year have been adjusted by
the effects arising from the adoption of IFRS 15.
[...]
Table ↗ E.08 shows the effects of the application of IFRS 15 and IFRS 9 (as far as the effects relate to non-
designated components of derivatives) on the Consolidated Statement of Income for the second quarter of 2017
and the six-month period ended June 30, 2017.
3072 Chapter 37
E.08
Effects from the application of IFRS 15 and IFRS 9 on the Consolidated Statement of Income
Q2 2017
Q1-2 2017
In millions of euros
Revenue
56 –138
Cost of sales
50 135
Selling expenses
9 2
General administrative expenses
– –
Other operating income
–142 –280
Other operating expense
–2 –2
Other financial income/expense, net1
–30 47
Income taxes
4 92
Net profit
5 –144
1 Exclusively from the first-time adoption of IFRS 9. Resulting from the deferral of profits and losses relating
to non-designated components of derivatives in other financial income/expense
The application of IFRS 15 and IFRS 9 in 2017 led to a decrease in net profit of €247 million.
The effects on the line items of the Consolidated Statement of Financial Position at January 1, 2017 as well as at
December 31, 2017 are presented in table ↗ E.09.
E.09 [extract]
Effects from the application of IFRS 15 and IFRS 9 on the Consolidated Statement of Financial Position
Dec. 31,
Jan. 31,
2017
2017
In millions of euros
Assets
Equipment on operating leases
–640 –264
Trade receivables
5 2
Receivables from financial services
267 0
Other financial assets
5 14
Deferred tax assets
–9 –35
Other assets
112 63
Total assets
–260 –220
Equity and liabilities
Total equity
–155 95
Trade payables
–23 –1
Provisions for other risks
–2,481 –2,663
Other financial liabilities
–2,247 –1,955
Deferred tax liabilities
–55 4
Deferred income
–6,274 –5,820
Contract liabilities
11,208 10,328
Other liabilities
–233 –208
Total equity and liabilities
–260 –220
Basic and diluted earnings per share are unchanged in the second quarter 2017 and decrease by €0.14 in the six-
month period ended June 30, 2017.
Interim financial reporting 3073
4.3.14
Seasonality or cyclicality of operations
Extract 37.15 below shows how Ardagh Packaging discloses the effects of seasonality in
its interim report. [IAS 34.16A(b)].
Extract 37.15: Ardagh Packaging Holdings Limited (interim ended March 2016)
Notes to the Unaudited Condensed Consolidated Interim Financial Statements [extract]
12. Seasonality of operations [extract]
The Group’s revenue and cash flows are both subject to seasonal fluctuations. Demand for our glass products is
typically strongest during the summer months and in the period prior to December because of the seasonal nature of
beverage consumption. Demand for our metal products is largely related to agricultural harvest periods. The
investment in working capital for Glass Packaging North America and Glass Packaging Europe typically peaks in
the first quarter. The investment in working capital for Metal Packaging generally builds over the first three quarters
of the year, in line with the seasonal pattern, and then unwinds in the fourth quarter, with the calendar year-end being
the low point. The Group manages the seasonality of working capital by supplementing operating cash flows with
drawings under our securitisation and revolving credit facilities.
4.3.15
Amounts that are unusual because of their nature, size or incidence
Pinafore discloses the nature and effects of unusual items in Extract 37.17 below by
identifying ‘restructuring costs’ and a ‘gain on disposals and on the exit of businesses’
not identified as discontinued operations. In addition, quantitative information is
provided about the allocation of ‘restructuring costs’ and ‘disposals and exit of
businesses’ to regions, the corporate level and discontinued operations. [IAS 34.16A(c)].
Refer to Extract
37.22 for another example illustrating disclosures about
restructuring activities.
Extract 37.16: Pinafore Holdings B.V. and Subsidiaries (interim ended March 2014)
CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited) [extract]
Q1 2014
Q1 2013*
Note
$ million
$ million
Continuing operations
Sales
2
763.8
744.6
Cost of sales
(477.0)
(472.1)
Gross profit
286.8
272.5
Distribution costs
(81.8)
(80.6)
Administrative expenses
(113.7)
(122.4)
Transaction costs
(5.7)
–
Impairments
–
(0.4)
Restructuring costs
3
(8.0)
(5.8)
Net gain on disposals and on the exit of businesses
3
4.2
0.2
Operating profit
81.8
63.5
* Re-presented for discontinued operations (see note 6)
3074 Chapter 37
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS [extract]
3. RESTRUCTURING
INITIATIVES [extract]
Restructuring costs of $8.0 million (Q1 2013: $5.8 million) were recognized in Q1 2014, including $6.8 million
in relation to the closure of the Ashe County plant within Gates North America. Also recognized during Q1 2014
were costs of $1.0 million in relation to the closure of the London corporate center and the transfer of the majority
of those functions to the Group’s corporate headquarters in Denver, Colorado.
Restructuring costs incurred in Q1 2013 included $3.3 million in relation to the closure of the London corporate
center and the transfer of the majority of those functions to the Group’s corporate headquarters in Denver,
Colorado and costs of $0.7 million incurred in relation to the closure of the Charleston plant.
4.3.16
Changes in estimates
In the Extract below, Greentech Energy Systems discloses the nature and amounts of
changes in estimates of amounts that resulted in a material effect on the current interim
period. [IAS 34.16A(d)].
Extract 37.17: Greentech Energy System A/S (interim ended September 2015)
Notes [extract]
1.
Accounting policies [extract]
Critical choices and judgments in the accounting policies and critical accounting estimates [extract]
The Group regularly reviews the useful life of its assets in order to bring it into line with the technical and economic
measurements, taking into consideration their technological capacity and regulatory frameworks. In Q1 2015, based
on a study performed by an independent advisor, Greentech has changed the useful life of its operating wind farms
from 20 to 25 years, with effect from 1 January 2015 (see note 3).
3.
Intangible assets, property, plant and equipment [extract]
Starting from January 2015, Greentech has changed the useful life of the wind farms from 20 to 25 years (see note 1), following to a technical study performed by an independent technical ad
visor. This useful life applies to tangible and intangible assets and the estimated impact of this change on the profit/loss before taxes was approximately EUR 3.3M over the Q1-Q3 period
in 2015 (of which 2.2M in H1 2015) and of EUR 4.5M on a yearly basis, considering the current installed capacity.
4.3.17
Issues, repurchases and repayments of debt and equity securities
Extract 37.18 below illustrates the disclosure of material changes in borrowings.
[IAS 34.16A(e)].
Extract 37.18: OSRAM Licht Group (interim ended June 2015)
Notes to the Condensed Interim Consolidated Financial Statements [extract]
5 Financial Instruments [extract]
The reduction in loans from banks from €181.8 million as of September 30, 2014, to €97.3 million as of June 30,
2015, is due in particular to the repayment in full of the syndicated term loan totaling €140.0 million. In this context, the unamortized portion of the transaction costs in the amount of €1.7 million was recognized as interest expense
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 608
