Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsNotes to for the the Consolidated years ended and Company 31 december Financial Statements 2012 and 2011for the years ended 31 December 2012 and 2011In addition, an entity shall disclose for each type of continuing involvement:- the gain or loss recognised at the date of transfer of the assets;- income and expenses recognised, both in the reporting period and cumulatively, from the entity's continuing involvement in the derecognised financial assets;- if the total amount of proceeds from transfer activity in a reporting period is not evenly distributed throughout the reporting period;- when the greatest transfer activity took place within that reporting period;- the amount recognised from transfer activity in that part of the reporting period; and- the total amount of profits from transfer activity in that part of the reporting period.An entity shall provide this information for each period for which a statement of comprehensive income is presented.No significant impact in the Group resulted from the adoption of this amendment.Annual Improvement ProjectIn May 2012, IASB published the Annual Improvement Project that implied changes to the standards in force. However, the effective date of the referred changes is 1January 2013, being early adoption allowed. This project has not yet been adopted by the European Union.Changes to IAS 1 - Presentation of Financial Statements. This changes clarifies the difference between voluntary additional comparative information and theminimim required comparative information in cases of retrospective statements, reclassifications and changes in accounting policies. Generally, the minimumrequired comparative information is the previous period.No significant impact is expected in the Group from the adoption of this change.Changes to IAS 16 - Property, Plant and Equipment. This amendment clarifies that if spare parts and servicing equipment meet with the definition of property, plantand equipment are not inventory.No significant impact is expected in the Group from the adoption of this change.Changes to IAS 32 - Financial Instruments: Presentation. The amendment clarifies that income taxes arising from distributions to equity holders are accounted inaccordance with IAS 12 Income taxes.No significant impact is expected in the Group from the adoption of this change.Changes to IAS 34 - Interim Financial Reporting. The amendments aligns the disclosures requirement for total segment assets with total liabilities in interimfinancial statements, ensuring that interim disclosures are aligned with annual disclosures in relation to the changes of profit and losses account and othercomprehensive income.No significant impact is expected in the Group from the adoption of this change.Standards, amendments and interpretations issued but not yet effective for the GroupIFRS 7 (Amendment) - Financial Instruments: Disclosures - Offsetting Financial Assets and Financial LiabilitiesThe International Accounting Standards Board (IASB), issued in December 2011, amendments to IFRS 7 – Financial Instruments: Disclosures - Offsetting FinancialAssets and Financial Liabilities, with effective date of mandatory application of 1 January 2013, being early adoption allowed.With this change, the disclosures of financial instruments include information that will evaluate the effect or potential effect of the compensation arrangements,including the countervailing duties recognised as assets and financial liabilities in the statement of financial position.The adoption of this amendment will only have impact on the financial statement disclosures.IFRS 10 - Consolidated Financial StatementsThe International Accounting Standards Board (IASB) issued in May 2011, IFRS 10 - Consolidated Financial Statements, with effective date of mandatory application forperiods beginning on or after 1 January 2014, being allowed its early adoption.This standard introduces a new approach in determining which investments should be consolidated, replacing IAS 27 - Consolidated and Separate FinancialStatements and SIC 12 - Consolidation SPE. This standard establishes a single model to be applied in assessing the existence of control over subsidiaries, where aninvestor has control over a subsidiary when it is exposed, or has the right, to variable returns arising from its involvement in the subsidiary and has the ability toinfluence these returns because of the power over it. Additionally, was introduced the concept of "de facto control".The Group is evaluating the impact of adopting this standard.IFRS 11 - Joint ArrangementsThe International Accounting Standards Board (IASB) issued in May 2011, IFRS 11 - Joint Arrangements, with effective date of mandatory application for periodsbeginning on or after 1 January 2014, being allowed its early adoption.This standard superseded IAS 31 - Interests in Joint Ventures and introduces several changes for accounting jointly controlled investments, the main aspect is theelimination of the option to consolidate joint ventures by the proportional method, being the equity method mandatory.EDP - Annual Report 2012249