Annual Report Gorenje Group 2009

GROUP - SUPPLEMENTS TO IAS
Revised IFRS 3 Business Combinations (effective for annual periods beginning on or
after 1 July 2009)
The scope of the revised Standard has been amended and the definition of a business has been
expanded. The revised Standard also includes a number of other potentially significant changes
including:
• All items of consideration transferred by the acquirer are recognised and measured at fair
value as of the acquisition date, including contingent consideration.
• Subsequent change in contingent consideration will be recognized in profit or loss.
• Transaction costs, other than share and debt issuance costs, will be expensed as incurred.
The acquirer can elect to measure any non-controlling interest at fair value at the acquisition date (full
goodwill), or at its proportionate interest in the fair value of the identifiable assets and liabilities of the
acquiree, on a transaction-by-transaction basis.
As the revised Standard should not be applied to business combinations prior to the date of adoption,
the revised Standard is expected to have no impact on the financial statements with respect to
business combinations that occur before the date of adoption of the revised Standard.
Revised IAS 27 Consolidated and Separate Financial Statements (effective for annual
periods beginning on or after 1 July 2009)
In the revised Standard the term minority interest has been replaced by non-controlling interest, and is
defined as "the equity in a subsidiary not attributable, directly or indirectly, to a parent". The revised
Standard also amends the accounting for non-controlling interest, the loss of control of a subsidiary,
and the allocation of profit or loss and other comprehensive income between the controlling and noncontrolling
interest.
The Group has not yet completed its analysis of the impact of the revised Standard.
Amendment to IAS 32 Financial Instruments: Presentation - Classification of Rights
Issues (effective for annual period beginning on or after 1 February 2010)
The amendment requires that rights, options or warrants to acquire a fixed number of the entity’s own
equity instruments for a fixed amount of any currency, are equity instruments if the entity offers the
rights, options or warrants pro rata to all of its existing owners of the same class of its own nonderivative
equity instruments.
The amendments to IAS 32 are not relevant to the Group’s consolidated financial statements as the
Group has not issued such instruments at any time in the past.
Amendment to IAS 39 Financial Instruments: Recognition and Measurement - Eligible
Hedged Items (effective for annual periods beginning on or after 1 July 2010)
The amended Standard clarifies the application of existing principles that determine whether specific
risks or portions of cash flows are eligible for designation in a hedging relationship. In designating a
hedging relationship the risks or portions must be separately identifiable and reliably measurable;
however inflation cannot be designated, except in limited circumstances.
The Group has not yet completed its analysis of the impact of the amendment to the Standard.
111
Annual Report Gorenje Group 2009