Commission Regulation (EC) No 2236/2004Show full title

C1

IAS 1 Presentation of Financial Statements(as revised in 2003), is amended as described below.

Paragraph 68 is amended to read as follows:

68.

As a minimum, the face of the balance sheet shall include line items that present the following amounts to the extent that they are not presented in accordance with paragraph 68A:

(a)

…

Paragraph 68A is added as follows:

68A.

The face of the balance sheet shall also include line items that present the following amounts:

(a)

the total of assets classified as held for sale and assets included in disposal groups classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;

and

(b)

liabilities included in disposal groups classified as held for sale in accordance with IFRS 5.

Paragraph 81 is amended to read as follows:

81.

As a minimum, the face of the income statement shall include line items that present the following amounts for the period:

…

(d)

tax expense;

(e)

a single amount comprising the total of (i) the post-tax profit or loss of discontinued operations and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation;

and

(f)

profit or loss.

Paragraph 87(e) is amended to read as follows:

(e)

discontinued operations;

C2

In IAS 10 Events after the Balance Sheet Date, paragraph 22(b) and (c) is amended to read as follows:

(b)

announcing a plan to discontinue an operation;

(c)

major purchases of assets, classification of assets as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, other disposals of assets, or expropriation of major assets by government;

C3

IAS 14 Segment Reporting is amended as described below.

Paragraph 52 is amended to read as follows:

52.

An entity shall disclose segment result for each reportable segment, presenting the result from continuing operations separately from the result from discontinued operations.

Paragraph 52A is added as follows:

52A.

An entity shall restate segment results in prior periods presented in the financial statements so that the disclosures required by paragraph 52 relating to discontinued operations relate to all operations that had been classified as discontinued at the balance sheet date of the latest period presented.

Paragraph 67 is amended to read as follows:

67.

An entity shall present a reconciliation between the information disclosed for reportable segments and the aggregated information in the consolidated or individual financial statements. In presenting the reconciliation, the entity shall reconcile segment revenue to entity revenue from external customers (including disclosure of the amount of entity revenue from external customers not included in any segment); segment result from continuing operations shall be reconciled to a comparable measure of entity operating profit or loss from continuing operations as well as to entity profit and loss from continuing operations; segment result from discontinued operations shall be reconciled to entity profit or loss from discontinued operations; segment assets shall be…

C4

IAS 16 Property, Plant and Equipment, as revised in 2003, is amended as described below.

Paragraph 3 is amended to read as follows:

3.

This Standard does not apply to:

(a)

property, plant and equipment classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;

(b)

biological assets…;

or

(c)

mineral rights…

However, this Standard applies to property, plant and equipment used to develop or maintain the assets described in (b) and (c).

Paragraph 55 is amended to read as follows:

55.

… Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 and the date that the asset is derecognised. Therefore, depreciation does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated. However, …

Paragraph 73(e)(ii) is amended to read as follows:

(ii)

assets classified as held for sale or included in a disposal group classified as held for sale in accordance with IFRS 5 and other disposals;

Paragraph 79(c) is amended to read as follows:

(c)

the carrying amount of property, plant and equipment retired from active use and not classified as held for sale in accordance with IFRS 5;

C5

In IAS 17 Leases, as revised in 2003, paragraph 41A is added as follows:

41A.

An asset under a finance lease that is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 shall be accounted for in accordance with that IFRS.

C6

IAS 27 Consolidated and Separate Financial Statements is amended as described below.

Paragraph 12 is amended to read as follows:

12.

Consolidated financial statements shall include all subsidiaries of the parent(^*).

A footnote is added to paragraph 12, as follows:

(*)

If on acquisition a subsidiary meets the criteria to be classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, it shall be accounted for in accordance with that Standard.

Paragraphs 16-18 are deleted.

Paragraph 37 is amended to read as follows:

37.

When separate financial statements are prepared, investments in subsidiaries, jointly controlled entities and associates that are not classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 shall be accounted for either:

(a)

at cost, or

(b)

in accordance with IAS 39.

The same accounting shall be applied for each category of investments. Investments in subsidiaries, jointly controlled entities and associates that are classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 shall be accounted for in accordance with that IFRS.

Paragraph 39 is amended to read as follows:

39.

Investments in jointly controlled entities and associates that are accounted for in accordance with IAS 39 in the consolidated financial statements shall be accounted for in the same way in the investor’s separate financial statements.

Paragraph 40(a) and (b) is deleted.

C7

IAS 28 Investments in Associates is amended as described below.

Paragraph 13 is amended to read as follows:

13.

An investment in an associate shall be accounted for using the equity method except when:

(a)

the investment is classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;

(b)

…

Paragraph 14 is amended to read as follows:

14.

Investments described in paragraph 13(a) shall be accounted for in accordance with IFRS 5.

Paragraph 15 is amended so that, after the deletion of the reference to IAS 22 Business Combinations made by IFRS 3 Business Combinations, it reads as follows:

15.

When an investment in an associate previously classified as held for sale no longer meets the criteria to be so classified, it shall be accounted for using the equity method as from the date of its classification as held for sale. Financial statements for the periods since classification as held for sale shall be amended accordingly.

Paragraph 16 is deleted.

Paragraph 38 is amended to read as follows:

38.

…disclosed. The investor’s share of any discontinued operations of such associates shall also be separately disclosed.

C8

IAS 31 Interests in Joint Ventures is amended as described below.

Paragraph 2(a) is amended to read as follows:

(a)

the interest is classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;

Paragraph 42 is amended to read as follows:

42.

Interests in jointly controlled entities that are classified as held for sale in accordance with IFRS 5 shall be accounted for in accordance with that IFRS.

Paragraph 43 is amended so that, after the deletion of the reference to IAS 22 Business Combinations made by IFRS 3, it reads as follows:

43.

When an interest in a jointly controlled entity previously classified as held for sale no longer meets the criteria to be so classified, it shall be accounted for using proportionate consolidation or the equity method as from the date of its classification as held for sale. Financial statements for the periods since classification as held for sale shall be amended accordingly.

Paragraph 44 is deleted.

C9

IAS 36 Impairment of Assets(issued in 1998) is amended as described below.

Paragraph 1 is amended to read as follows:

1.

This Standard shall be applied in accounting for the impairment of all assets, other than:

(a)

…

(f)

… (see IAS 40 Investment Property);

(g)

… (see IAS 41 Agriculture);

and

(h)

non-current assets (or disposal groups) classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

Paragraph 2 is amended to read as follows:

2.

This Standard does not apply to inventories, assets arising from construction contracts, deferred tax assets, assets arising from employee benefits or assets classified as held for sale (or included in a disposal group that is classified as held for sale) because existing Standards applicable to these assets already contain specific requirements for recognising and measuring these assets.

In paragraph 5 the definition of a cash-generating unit is amended to read as follows:

A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

A footnote is added to the last sentence of paragraph 9(f), as follows:

(*)

Once an asset meets the criteria to be classified as held for sale (or is included in a disposal group that is classified as held for sale), it is excluded from the scope of IAS 36 and is accounted for in accordance with IFRS 5.

C10

IAS 36 Impairment of Assets (as revised in 2004) is amended as described below.

All references to ‘net selling price’ are replaced by ‘fair value less costs to sell’.

Paragraph 2 is amended to read as follows:

2.

This Standard shall be applied in accounting for the impairment of all assets, other than:

(a)

…

(i)

non-current assets (or disposal groups) classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

Paragraph 3 is amended to read as follows:

3.

This Standard does not apply to inventories, assets arising from construction contracts, deferred tax assets, assets arising from employee benefits, or assets classified as held for sale (or included in a disposal group that is classified as held for sale) because existing Standards applicable to these assets contain requirements for recognising and measuring these assets.

In paragraph 6 the definition of a cash-generating unit is amended to read as follows:

A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

A footnote is added to the last sentence of paragraph 12(f), as follows:

(*)

Once an asset meets the criteria to be classified as held for sale (or is included in a disposal group that is classified as held for sale), it is excluded from the scope of the Standard and is accounted for in accordance with IFRS 5.

C11

In IAS 37 Provisions, Contingent Liabilities and Contingent Assets, paragraph 9 is amended to read as follows:

9.

This Standard applies to provisions for restructurings (including discontinued operations). When a restructuring meets the definition of a discontinued operation, additional disclosures may be required by IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

C12

IAS 38 Intangible Assets (issued in 1998)(1) is amended as described below.

Paragraph 2 is amended to read as follows:

2.

…For example, this Standard does not apply to:

(a)

…

(e)

…;

(f)

… and Measurement);

and

(g)

non-current intangible assets classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

Paragraph 79 is amended to read as follows:

79.

… Amortisation shall cease at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and the date that the asset is derecognised.

Paragraph 106 is amended to read as follows:

106.

Amortisation does not cease when the intangible asset is no longer used, unless the asset has been fully depreciated or is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5.

Paragraph 107(e)(ii) is amended to read as follows:

(ii)

assets classified as held for sale or included in a disposal group classified as held for sale in accordance with IFRS 5 and other disposals;

C13

IAS 38 Intangible Assets (as revised in 2004) is amended as described below.

Paragraph 3 is amended to read as follows:

3.

… For example, this Standard does not apply to:

(a)

…

(h)

non-current intangible assets classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

Paragraph 97 is amended to read as follows:

97.

… Amortisation shall cease at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and the date that the asset is derecognised…

Paragraph 117 is amended to read as follows:

117.

Amortisation of an intangible asset with a finite useful life does not cease when the intangible asset is no longer used, unless the asset has been fully depreciated or is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5.

Paragraph 118(e)(ii) is amended to read as follows:

(ii)

assets classified as held for sale or included in a disposal group classified as held for sale in accordance with IFRS 5 and other disposals;

C14

IAS 40 Investment Properties, as revised in 2003, is amended as described below.

Paragraph 9(a)is amended to read as follows:

(a)

property intended for sale in the ordinary course of business…

Paragraph 56 is amended to read as follows:

56.

After initial recognition, an entity that chooses the cost model shall measure all of its investment properties in accordance with IAS 16’s requirements for that model other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.Investment properties that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) shall be measured in accordance with IFRS 5.

Paragraph 76(c) is amended to read as follows:

(c)

assets classified as held for sale or included in a disposal group classified as held for sale in accordance with IFRS 5 and other disposals;

Paragraph 79(d)(iii) is amended to read as follows:

(iii)

assets classified as held for sale or included in a disposal group classified as held for sale in accordance with IFRS 5 and other disposals;

C15

IAS 41 Agriculture is amended as described below.

Paragraph 30 is amended to read as follows:

30.

There is a presumption that fair value can be measured reliably for a biological asset. However, that presumption can be rebutted only on initial recognition for a biological asset for which market-determined prices or values are not available and for which alternative estimates of fair value are determined to be clearly unreliable. In such a case, that biological asset shall be measured at its cost less any accumulated depreciation and any accumulated impairment losses. Once the fair value of such a biological asset becomes reliably measurable, an entity shall measure it at its fair value less estimated point-of-sale costs. Once a non-current biological asset meets the criteria to be classified as held for sale (or is included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, it is presumed that fair value can be measured reliably.

Paragraph 50(c) is amended to read as follows:

(c)

decreases attributable to sales and biological assets classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5;

C16

IFRS 1 First-time Adoption of International Financial Reporting Standards is amended as described below.

Paragraph 12(b) is amended to read as follows:

(b)

paragraphs 26-34B prohibit retrospective application of some aspects of other IFRSs.

Paragraph 26 is amended to read as follows:

26.

This IFRS prohibits retrospective application of some aspects of other IFRSs relating to:

(a)

…

(b)

hedge accounting (paragraphs 28-30);

(c)

estimates (paragraphs 31-34);

and

(d)

assets classified as held for sale and discontinued operations.

Paragraph 34A is added as follows:

34A.

IFRS 5 requires that it shall be applied prospectively to non-current assets (or disposal groups) that meet the criteria to be classified as held for sale and operations that meet the criteria to be classified as discontinued after the effective date of the IFRS. IFRS 5 permits an entity to apply the requirements of the IFRS to all non-current assets (or disposal groups) that meet the criteria to be classified as held for sale and operations that meet the criteria to be classified as discontinued after any date before the effective date of the IFRS, provided the valuations and other information needed to apply the IFRS were obtained at the time those criteria were originally met.

Paragraph 34B is added as follows:

34B.

An entity with a date of transition to IFRSs before 1 January 2005 shall apply the transitional provisions of IFRS 5. An entity with a date of transition to IFRSs on or after 1 January 2005 shall apply IFRS 5 retrospectively.

C17

IFRS 3 Business Combinations is amended as described below

Paragraph 36 is amended to read as follows:

36.

The acquirer shall, at the acquisition date, allocate the cost of a business combination by recognising the acquiree’s identifiable assets, liabilities and contingent liabilities that satisfy the recognition criteria in paragraph 37 at their fair values at that date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations, which shall be recognised at fair value less costs to sell. Any difference…

Paragraph 75(b) and (d) is amended to read as follows:

(b)

additional goodwill recognised during the period except goodwill included in a disposal group that, on acquisition, meets the criteria to be classified as held for sale in accordance with IFRS 5;

(d)

goodwill included in a disposal group classified as held for sale in accordance with IFRS 5 and goodwill derecognised during the period without having previously been included in a disposal group classified as held for sale;

C18

In International Financial Reporting Standards, including International Accounting Standards and Interpretations, applicable at 31 March 2004, references to ‘discontinuing operations’ are amended to ‘discontinued operations’.

(1)

As amended by IAS 16 in 2003.