talanx group annual report 2011 en

134
Financial statements Notes
General information
Talanx Group. Annual Report 2011
Accounting principles
and policies
Segment reporting Consolidation,
business combinations
Non-current assets held for
sale and disposal groups
In December 2010 the IASB published amendments to IFRS 1 “First-time Adoption of International
Financial Reporting Standards” concerning the abolition of fixed transition dates and the effects of
severe hyperinflation. These amendments have still to be ratified by the EU. Reference to 1 January
2004 as the fixed date of transition was replaced by a more general wording. In addition, this
standard for the first time provides guidance for cases in which an entity was unable to comply
with IFRSs for a period prior to the date of transition because its functional currency was subject to
severe hyperinflation. The amendment is applicable to financial years beginning on 1 July 2011. We
do not expect the application of these amendments to have any effect on the consolidated financial
statement.
In December 2010 the IASB published amendments to IAS 12 “Income Taxes”, which still have to be
adopted by the EU. These new rules include clarification of the treatment of temporary tax differences
in connection with measurement using the fair value model of IAS 40 “Investment Property”.
The amendment enters into force for reporting years beginning on or after 1 January 2012. We do
not expect the application of these amendments to have any effect on the consolidated financial
statement.
On 12 May 2011 the IASB published three new and two revised standards governing consolidation,
the accounting of investments in associated companies and joint ventures and the related disclosures
in the notes.
IFRS 10 “Consolidated Financial Statements” replaces the regulations previously contained in IAS 27
“Consolidated and Separate Financial Statements” and SIC 12 “Consolidation – Special-purpose
Entities”; it defines the principle of control as the universal basis for establishing the existence of a
parent-subsidiary relationship. We are currently examining the implications of the new IFRS 10 for
the consolidated financial statement.
In the future, the revised IAS 27 will contain only provisions on the accounting requirements for
interests in subsidiaries, associated entities and joint ventures disclosed in the parent company’s
separate financial statement. Apart from several minor changes, the wording of the previous standard
was retained.
IFRS 11 “Joint Arrangements” addresses the accounting requirements in cases where an entity
shares management control over a joint venture or joint operation. The new standard replaces the
pertinent regulations in IAS 31 “Interests in Joint Ventures” and SIC 13 “Jointly Controlled Entities
– Non-Monetary Contributions by Venturers”. According to IFRS 11, proportionate consolidation of
the assets of a joint venture is no longer admissible, and the “equity method” must be applied in
future. As things currently stand, the amendment affects us with regard to one case only (Credit Life
International Services GmbH).
The revised IAS 28 “Investments in Associates” will be expanded to include rules governing accounting
for investments in joint ventures. The “equity method” must be applied as standard in future.
The disclosure obligations in connection with the consolidation and accounting of interests in
associated entities and joint ventures will in future be collated in IFRS 12 “Disclosure of Interests in
Other Entities”. To some extent, the duties of disclosure in the new standard extend far beyond what
was previously the case, the aim being to provide users of financial statements with a clearer picture
of the nature of the company’s interests in other entities and the effects on the assets, financial
position and net income.