Annual Report - EDP

notes to the consolidatedEDPand- Energiascompanyde Portugal,financialS.A.statementsfor the years ended 31 december 2012 and 2011Notes to the Consolidated and Company Financial Statementsfor the years ended 31 December 2012 and 2011The structure of a joint agreement ceases to be the main factor in determining the accounting model to adopt. The classification of a joint agreement requires theidentification and evaluation of the structure, legal form of the contractual agreement and other facts and circumstances.The Group is evaluating the impact of adopting this standard.IFRS 12 - Disclosure of Interests in Other EntitiesThe International Accounting Standards Board (IASB) issued in May 2011, IFRS 12 - Disclosure of Interests in Other Entities, with effective date of mandatory applicationfor periods beginning on or after 1 January 2014, being allowed its early adoption.The information disclosed has to help users of the financial statements evaluate the nature and risks associated with its interests in other entities and the effects ofthose interests on the financial statements. The main issues considered are as follows:- for the interests in subsidiaries, should be disclosed: (i) the composition of the group;(ii) non-controlling interests; (iii) significant restrictions on the parent's ability toaccess or use the assets and settle the liabilities of its subsidiares; (iv) the nature of, and changes in, the risks associated with interests in consolidated structuredentities; and (v) changes in its ownership interest that did or did not result in a loss of control during the reporting period;- for the interests in joint arrangements and associates, it should be disclosed: (i) the nature, extent and financial effects of its interests in joint arrangements andassociates, including information about contractual relationships with other parties; and (ii) the nature of, and the changes in, the associated risks with its interests injoint ventures and associates;- for the interests in unconsolidated structured entities, should be disclose: (i) the nature and the extent of its interests in unconsolidated structured entities; and (ii) theevaluation of the nature and changes in the risks associated with the interests in unconsolidated structured entities.The Group is evaluating the impact of adopting this standard.IFRS 13 - Fair Value MeasurementThe International Accounting Standards Board (IASB) issued in May 2011, IFRS 13 - Fair Value Measurement, with effective date of mandatory application for periodsbeginning on or after 1 January 2013, being allowed its early adoption.This standard presents a revised concept of fair value and determines new disclosures requirements. The main aspects considered are as follows: (i) principles of fairvalue, (ii) appropriate valuations techniques and fair value hierarchy and (iii) additional disclosure requirements.No significant impact in the Group is expected from the adoption of this standard.IAS 1 (Amended) - Presentation of Financial StatementsThe International Accounting Standards Board (IASB) issued in June 2011, IAS 1 (Amended) - Presentation of Financial Statements: Presentation of items of othercomprehensive income, with effective date of mandatory application for periods beginning on or after 1 July 2012, being allowed its early adoption.The principal changes are the following:- the amendments retain the option to present profit or loss and other comprehensive income in either a single continuos statement or in two separate butconsecutive statements;- items of other comprehensive income, and the respective tax effect, are required to be grouped into those that will and will not subsequently be reclassified to profitor loss.The Group is evaluating the impact from the adoption of this change.IAS 19 (Amended) - Employee BenefitsThe International Accounting Standards Board (IASB) issued in June 2011, IAS 19 (Amended) - Employee Benefits, with effective date of mandatory application forperiods beginning on or after 1 January 2013, being allowed its early adoption.The amendments to IAS 19, make important improvements by:- eliminating an option to defer the recognition of gains and losses, known as the "corridor method", improving comparability and faithfulnesss of presentation;- streamlining the presentation of changes in assets and liabilities arising from defined benefit plans, including requiring remeasurements to be presented in othercomprehensive income, thereby separating those changes from changes that many perceive to be the result of an entity's day-to-day operations; and- enhancing the disclosure requirements for defined benefit plans, providing better information about the characteristics of defined benefit plans and the risks thatentities are exposed to through participation in those plans.No significant impact in the Group is expected from the adoption of this change.IAS 27 (Amended) - Separate Financial StatementsThe International Accounting Standards Board (IASB) issued in May 2011, IAS 27 (Amended) - Separate Financial Statements, with effective date of mandatoryapplication for periods beginning on or after 1 January 2014, being allowed its early adoption.The amendment to IAS 27 in 2011 resulted from the Board's project on consolidation. A new IFRS, IFRS 10 - Consolidated Financial Statements, addresses the principleof control and requirements relating to the preparation of consolidated financial statements. As a result, IAS 27 now contains requirements relating only to separatefinancial statements. This change is reflected in the standard's amended title, Separate financial statements.No significant impact in the Group is expected from the adoption of this change.250A World Full Of Energy