Note 21 New and amended accounting standards
The standards and interpretations that were adopted before submission of the consolidated accounts, but where the effective date is in the future, are stated below. The Group intends to implement the relevant amendments at the effective date, provided that the EU approves the amendments before the group accounts are presented. Only matters assumed to be relevant for Statnett, have been included. However, none of the amendments below are considered to imply substantial changes in the Group’s application of accounting principles or notes.
Adopted IFRS and IFRIC standards with future implementation dates
IAS 19 Employee Benefits
The amendment introduces the option to recognise contributions from employees or third parties as a reduction in pension cost in the same period in which they are payable if, and only if, they are linked solely to the employee’s "services" rendered in that period.
IAS 27 Separate Financial Statements
As a consequence of the publication of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities, IASB has amended IAS 27. IAS 27 now only deals with accounting in the separate financial statement. The title of the standard was also changed in this connection. The amendments have been approved by the EU, with effect from the fiscal year starting on 1 January 2014 or later.
IAS 28 Investments in Associates and Joint Ventures
As a consequence of the new standards IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities, the title of IAS 28 has been changed to Investments in Associates and Joint Ventures. IAS 28 now describes the use of the equity method for investments in joint ventures, in addition to associates. The amendments have been adopted by the EU, with effect from the fiscal year starting on 1 January 2014 or later.
IAS 32 Financial Instruments - presentation
IAS 32 has been amended to clarify the content of "currently has a legally enforceable right to set-off" and the use of IAS 32's set-off criteria for settlement systems such as clearing house systems which apply gross settlement systems that are not simultaneous. The amendments will be effective for fiscal years starting on 1 January 2014 or later.
IAS 36 – Impairment of Assets
The amendment addresses the disclosure of information about the recoverable amount of impaired assets, if this is based on fair value less costs of disposal. The amendment must be regarded in the context of IFRS 13 Fair Value Measurement. The amendments will be effective for fiscal years starting on 1 January 2014 or later.
IAS 39 Financial Instruments - Recognition and Measurement
IASB has adopted changes relating to amendments of the hedge accounting rules pursuant to IFRS. Under the amendments there would be no need to discontinue hedge accounting if a hedging derivative was novated to effect clearing with a central counterparty - CCP) as a consequence of existing or newly introduced laws or regulations, provided certain criteria are met. The amendments will be effective for fiscal years starting on 1 January 2014 or later.
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the portions of IAS 27 Consolidated and Separate Financial Statements that address consolidated financial statements, and SIC-12 Consolidation - Special Purpose Entities.
IFRS 10 is based on a single control model that applies to all entities including special purpose entities (SPE). The changes introduced by IFRS 10 will require management to exercise significant judgement to determine which entities are controlled by the parent company, where all enterprises that are to be controlled must be consolidated. The decisive factor in determining whether a company is to be included in the consolidated accounts under IFRS 10 is whether there is control. Control over another entity exists when the investor is exposed to, or has rights to, variable returns from his involvement with the entity, and the ability to use power to control the activities in the entity which, to a significant degree, affect the returns. Within the EU/EEA, IFRS 10 is effective for fiscal years starting on or after 1 January 2014.
IFRS 11 Joint Arrangements
This standard replaces IAS 31 Interests in Joint Ventures, as well as SIC-13 Jointly Controlled Entities - Non-monetary Contributions by Venturers. IFRS 11 removes the option to account for joint ventures using the proportional consolidation method. Instead, all entities that meet the definition of joint ventures must be accounted for using the equity method. In the EU/EEA area, IFRS 11 will apply for the fiscal year starting on 1 January 2014 or later.
IFRS 12 Disclosure of Interests in Other Entities
IFRS 12 applies to enterprises with interests in subsidiaries, joint arrangements, associates or unconsolidated structured entities. IFRS 12 replaces the disclosure requirements that were previously included in IAS 27 Consolidated and Separate Financial Statements, IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures. A number of new disclosures are also required. In the EU/EEA area, IFRS 12 will apply for the fiscal year starting on 1 January 2014 or later.
Amendments not approved by the EU
IFRS 9 – Financial Instruments
IFRS 9 will replace IAS 39. IASB has divided the project into several phases. The relevant sections of IAS 39 will be deleted as the individual phases of IFRS 9 are completed. The Group will evaluate potential effects of IFRS 9 in keeping with the other phases, as soon as the final standard, including all phases, is published.
IFRIC 21 - Levies
IFRIC 21 is an interpretation of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The standard stipulates criteria for when an entity should recognise a liability. One such criterion is that the entity has a present obligation as a result of a past event, also known as an obligating event. The interpretation clarifies that the obligating event that gives rise to a liability to pay government levies is the activity described in the relevant legislation that triggers the payment of the levy. The interpretation also includes guidance illustrating how it should be applied.
IASB 2010 - 2012 annual improvement project
The IASB's annual improvement project for 2010 – 2012 contains amendments to several standards:
IFRS 3 – Business Combinations
Contingent consideration in a business combination that is not classified as equity must subsequently be measured at fair value through profit or loss regardless of whether or not it is within the scope of IFRS 9 “Financial instruments”.
IFRS 13 Fair Value Measurement
IASB clarifies that non-interest-bearing short-term receivables and payables can be measured at invoice amount if the impact of discounting is not material.
IAS 24 – Related Party Disclosures
The amendment clarifies that a management entity that supplies key personnel to the management is a related party covered by the information requirements relating to related parties. In addition, an entity that makes use of such services must disclose any costs accrued for management services. The amendments have not yet been approved by the EU.
2011-2013 annual improvement project
The IASB's annual improvement project for 2011 – 2013 contains amendments to several standards:
IFRS 3 – Business Combinations
The amendment clarifies that:
- Joint arrangements are outside the scope of IFRS 3, not just joint ventures
- The scope exception only applies to the financial statements of the joint venture or the joint operation.
IFRS 13 Fair Value Measurement
The amendment clarifies that the portfolio exception in IFRS 13.52 applies to financial assets, financial liabilities and other contracts.