talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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134<br />
Financial statem<strong>en</strong>ts Notes<br />
G<strong>en</strong>eral information<br />
Talanx Group. Annual Report <strong>2011</strong><br />
Accounting principles<br />
and policies<br />
Segm<strong>en</strong>t <strong>report</strong>ing Consolidation,<br />
business combinations<br />
Non-curr<strong>en</strong>t assets held for<br />
sale and disposal <strong>group</strong>s<br />
In December 2010 the IASB published am<strong>en</strong>dm<strong>en</strong>ts to IFRS 1 “First-time Adoption of International<br />
Financial Reporting Standards” concerning the abolition of fixed transition dates and the effects of<br />
severe hyperinflation. These am<strong>en</strong>dm<strong>en</strong>ts have still to be ratified by the EU. Refer<strong>en</strong>ce to 1 January<br />
2004 as the fixed date of transition was replaced by a more g<strong>en</strong>eral wording. In addition, this<br />
standard for the first time provides guidance for cases in which an <strong>en</strong>tity was unable to comply<br />
with IFRSs for a period prior to the date of transition because its functional curr<strong>en</strong>cy was subject to<br />
severe hyperinflation. The am<strong>en</strong>dm<strong>en</strong>t is applicable to financial years beginning on 1 July <strong>2011</strong>. We<br />
do not expect the application of these am<strong>en</strong>dm<strong>en</strong>ts to have any effect on the consolidated financial<br />
statem<strong>en</strong>t.<br />
In December 2010 the IASB published am<strong>en</strong>dm<strong>en</strong>ts to IAS 12 “Income Taxes”, which still have to be<br />
adopted by the EU. These new rules include clarification of the treatm<strong>en</strong>t of temporary tax differ<strong>en</strong>ces<br />
in connection with measurem<strong>en</strong>t using the fair value model of IAS 40 “Investm<strong>en</strong>t Property”.<br />
The am<strong>en</strong>dm<strong>en</strong>t <strong>en</strong>ters into force for <strong>report</strong>ing years beginning on or after 1 January 2012. We do<br />
not expect the application of these am<strong>en</strong>dm<strong>en</strong>ts to have any effect on the consolidated financial<br />
statem<strong>en</strong>t.<br />
On 12 May <strong>2011</strong> the IASB published three new and two revised standards governing consolidation,<br />
the accounting of investm<strong>en</strong>ts in associated companies and joint v<strong>en</strong>tures and the related disclosures<br />
in the notes.<br />
IFRS 10 “Consolidated Financial Statem<strong>en</strong>ts” replaces the regulations previously contained in IAS 27<br />
“Consolidated and Separate Financial Statem<strong>en</strong>ts” and SIC 12 “Consolidation – Special-purpose<br />
Entities”; it defines the principle of control as the universal basis for establishing the exist<strong>en</strong>ce of a<br />
par<strong>en</strong>t-subsidiary relationship. We are curr<strong>en</strong>tly examining the implications of the new IFRS 10 for<br />
the consolidated financial statem<strong>en</strong>t.<br />
In the future, the revised IAS 27 will contain only provisions on the accounting requirem<strong>en</strong>ts for<br />
interests in subsidiaries, associated <strong>en</strong>tities and joint v<strong>en</strong>tures disclosed in the par<strong>en</strong>t company’s<br />
separate financial statem<strong>en</strong>t. Apart from several minor changes, the wording of the previous standard<br />
was retained.<br />
IFRS 11 “Joint Arrangem<strong>en</strong>ts” addresses the accounting requirem<strong>en</strong>ts in cases where an <strong>en</strong>tity<br />
shares managem<strong>en</strong>t control over a joint v<strong>en</strong>ture or joint operation. The new standard replaces the<br />
pertin<strong>en</strong>t regulations in IAS 31 “Interests in Joint V<strong>en</strong>tures” and SIC 13 “Jointly Controlled Entities<br />
– Non-Monetary Contributions by V<strong>en</strong>turers”. According to IFRS 11, proportionate consolidation of<br />
the assets of a joint v<strong>en</strong>ture is no longer admissible, and the “equity method” must be applied in<br />
future. As things curr<strong>en</strong>tly stand, the am<strong>en</strong>dm<strong>en</strong>t affects us with regard to one case only (Credit Life<br />
International Services GmbH).<br />
The revised IAS 28 “Investm<strong>en</strong>ts in Associates” will be expanded to include rules governing accounting<br />
for investm<strong>en</strong>ts in joint v<strong>en</strong>tures. The “equity method” must be applied as standard in future.<br />
The disclosure obligations in connection with the consolidation and accounting of interests in<br />
associated <strong>en</strong>tities and joint v<strong>en</strong>tures will in future be collated in IFRS 12 “Disclosure of Interests in<br />
Other Entities”. To some ext<strong>en</strong>t, the duties of disclosure in the new standard ext<strong>en</strong>d far beyond what<br />
was previously the case, the aim being to provide users of financial statem<strong>en</strong>ts with a clearer picture<br />
of the nature of the company’s interests in other <strong>en</strong>tities and the effects on the assets, financial<br />
position and net income.