Annual Report

Notes – Marine Subsea Consolidated
amount of goodwill recognised, the reported results in the period that
an acquisition occurs, and future reported results. lAS 27R requires
that a change in the ownership interest of a subsidiary (without loss
of control) is accounted for as an equity transaction. Therefore, such
transactions will no longer give rise to goodwill, nor will it give rise
to a gain or loss. Furthermore, the amended standard changes the
accounting for losses incurred by the subsidiary as well as the loss of
control of a subsidiary. Other consequential amendments were made
to lAS 7 statement of Cash Flows, lAS 12 Income Taxes, lAS 21 The
Effects of Changes in Foreign Exchange Rates, lAS 28 Investment
in Associates and lAS 31 Interests in Joint Ventures. The changes by
IFRS 3R and lAS 27R will affect future acquisitions or loss of control
and transactions with non-controlling interest. The Group expects to
implement IFRS 3(R) as of 1 January 2010.
• lAS 32 Financial Instruments: Presentation and lAS 1 Presentation of
Financial Statements – Puttable Financial Instruments and Obligations
Arising on Liquidation (effective from 1 February 2010). The revisions
provide a limited scope exception for puttable instruments to be
classified as equity if they fulfil a number of specified features. The
amendments to the standards will have no impact on the financial
position or performance of the Group, as the Group has not issued
such instruments.
• lAS 39 Financial Instruments: Recognition and Measurement – Eligible
Hedged Items (effective from 1 July 2009). The amendment addresses
the designation of a one-sided risk in a hedged item, and the
designation of ihflation as a hedged risk or portion in particular situations.
It clarifies that an entity is permitted to designate a portion of
the fair value changes or cash flow variability of a financial instrument
as hedged item. The Group has concluded that the amendment
will have no impact on the financial position or performance of the
Group, as the Group has not entered into any such hedges.
• IFRIC 16 Hedges of a Net Investment in a Foreign Operation. (effective
from 1 July 2009). The interpretation is to be applied prospectively.
IFRIC 16 provides guidance on the accounting for a hedge of
a net investment. As such it provides guidance on identifying the
foreign currency risks that qualify for hedge accounting in the hedge
of a net investment, where within the group the hedging instruments
can be held in the hedge of a net investment and how an entity
should determine the amount of foreign currency gain or loss, relating
to both the net investment and the hedging instrument. to be
recycled on disposal of the net investment. The changes by IFRIC 16
will affect future hedges of a net investment in a foreign operation.
The Group expects to implement IFRIC 16 as of 1 January 2010.
• Amendments to IFRS 2 Share-based Payments – Group Cash-settled
Share-based payment Transactions: The amendment to IFRS 2
provides more guidance on the accounting for group cash-settled
share-based payment transactions. In addition, the definition of share
based payment is somewhat modified. This amendment supersedes
IFRIC 8 and IFRIC 11. This amendment is effective for annual periods
beginning on or after 1 January 2010, but the amendment is not yet
approved by the EU. The Group expects to apply the amendment
as of 1 January 2010. The amendments to the standards will have
no impact on the financial position or performance of the Group,
as the Group has no share-based agreements at year end 2009.
• IFRS 9 Financial Instruments: IFRS 9 replaces the classification and
measurement rules in IAS 39 Financial Instruments- Recognition and
measurement for financial instruments. According to IFRS 9 financial
assets with basic loan features shall be measured at amortised cost,
unless one opts to measure these assets at fair value. All other financial
assets shall be measured at fair value. IFRS 9 is effective for annual
periods beginning on or after 1 January 2013, but the standard is
not yet approved by the EU. The Group expects to apply IFRS 9 as of
1 January 2013. The amendments to the standards is not expected
to have an impact on the financial position or performance of the
Group.
• IAS 24 (revised) Related Party Disclosures: The revised IAS 24 clarifies
and simplifies the definition of a related party, compared to the current
IAS 24. The revised standard also provides some relief for governmentrelated
entities to disclose details of all transactions with other
government-related entities (as well as with the government itself). IAS
24 (R) is effective for annual periods beginning on or after 1 January
2011, but the revised standard is not yet approved by the EU. The
Group expects to implement IAS 24 (R) as of 1 January 2011.
• IAS 27 (revised) Consolidated and Separate Financial Statements.
The revised IAS 27 provides more guidance on accounting for
changes in ownership interest in a subsidiary and the disposal of a
subsidiary, compared to the current IAS 27. According to the revised
standard the entity measures the interest retained in a former
subsidiary at fair value upon loss of control of the subsidiary, and the
corresponding gain or loss is recognised through profit and loss. The
revised standard also includes a change in the requirements relating
to the allocation of losses in a loss-making subsidiary. IAS 27 (R)
requires total comprehensive income to be allocated between the
controlling and the non-controlling party, even if this results in the
non-controlling interest having a deficit balance. IAS 27 (R) is effective
for annual periods beginning on or after 1 July 2009. The Group
plans to implement IAS 27 (R) as of 1 January 2010.
• Amendments to IFRIC 14 IAS 19 The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their Interaction –
Prepayments of a Minimum funding Requirement: The amendment
to IFRIC 14 intends to correct an unintended consequence of IFRIC
14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction. This amendment will allow
entities to recognise a prepayment of pension contributions as an
asset rather than an expense. The amendment is effective for annual
periods beginning on or after 1 January 2011, but the amendment
is not yet approved by the EU. The Group expects to implement the
amendment as of 1 January 2011. The Group does not expect that
implementation of IFRIC 14 will have a material effect on the financial
statement of the Group on the date of implementation.
• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments:
The interpretation clarifies the accounting treatment of financial
liabilities that, as a result of a renegotiation of the terms of the
financial liability, are fully, or partially, extinguished with equity instru-
Annual Report 2009 Marine Subsea 25