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Notes to the Consolidated Financial Statements
3. Significant accounting policies (continued)
Leases
(a) When a Group entity is the lessee
The leases into which the Group enters are primarily operating leases. Over the period of the lease, payments for operating leases are charged to the
income statement on a straight-line basis, in the line item "Other operating expenses".
If an operating lease is terminated before the lease period has expired, any payment to the lessor required by way of penalty is recognised as an
expense in the period in which termination occurs.
(b) When a Group entity is the lessor
When assets are held subject to a finance lease, the present value of lease payments is recognised as a receivable, under loans and advances to
customers. Finance income from such a lease is recognised over the term of the lease, using a method that reflects a constant periodic rate of return
on the Group's net investment in the lease.
Discontinued operations
The Group presents discontinued operations in a separate line of the consolidated income statement if an entity or a component of an entity has
been disposed of or is classified as held for sale and:
• Represents a major separate line of business;
• Is a part of a single co-ordinated plan to dispose of a major separate line of business; or
• Is a subsidiary acquired exclusively with a view to resale.
The profit from discontinued operations disclosed in the consolidated income statement consists of (a) post-tax profit or loss from discontinued
operations and (b) post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or the disposal
groups constituting the discontinued operation. A component of an entity comprises operations and cash flows that can be clearly distinguished,
operationally and for financial reporting, from the rest of the Group's operations and cash flows.
New standards, amendments to standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2010, and have not
been applied in preparing these consolidated financial statements. None of them will have an effect on the consolidated financial statements of the
Group, with the exception of:
The amendment to IFRS 7 Financial Instruments: Disclosures included in the Improvements to IFRSs (May 2010) 2010), according to which the Group will
be required to disclose a quantification of the extent to which collateral and other credit enhancements mitigate the credit risk arising from financial
assets. The amendment becomes mandatory for the Group's 2011 consolidated financial statements, with retrospective application required.
The amendments to IFRS 7 Financial Instruments: Disclosures – Transfers of Financial Assets , according to which the Group will be required to
disclose information that enables users of financial statements (i) to understand the relationship between transferred financial assets that are not
derecognised in their entirety and the associated liabilities; and (ii) to evaluate the nature of, and risks associated with, an entity’s continuing
involvement in derecognised financial assets. If endorsed by the EU, these amendments will become mandatory for the Group’s 2012 consolidated
financial statements, with earlier application permitted. The disclosures will not be required for any periods presented that begin before the date of
initial application of the amendments. The amendments will impact only the disclosures made in the notes to consolidated financial statements in
respect of transfers of financial assets.
NBI hf. Consolidated Financial Statements 2010 21
All amounts are in ISK million
Allar upphæðir eru í milljónum króna Ársreikningur 2010 121