Page 48

Jotun - Annual Report 2015

46 JOTUN GROUP 23 STANDARDS ISSUED BUT NOT YET EFFECTIVE The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. Jotun Group intends to adopt these standards, if applicable, when they become effective. IFRS 9 FINANCIAL INSTRUMENTS In 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions. The Jotun Group plans to adopt the new standard on the required effective date. During 2015, the Group has performed a high-level impact assessment of all three aspects of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Group in the future. Overall, the Group expects no significant impact on its balance sheet and equity. IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS IFRS 15 was issued in May 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach to measuring and recognising revenue. The new revenue standard is applicable to all entities and will supersede all current revenue recognition requirements under IFRS. Either a full or modified retrospective application is required for annual periods beginning on or after 1 January 2018 with early adoption permitted. The Jotun Group has preformed a preliminary assessing the impact of IFRS 15 and the impactions are not expected to be significant. The Group plans to adopt the new standard on the required effective date. IFRS 16 LEASES In January 2016, the IASB published the final version of IFRS 16 Leases. The standard requires that upon lease commencement a lessee recognises a right-of-use asset and a lease liability. The new standard will require changes to the Jotun Group’s balance sheet and expense character, the detailed implications are currently being assessed. IFRS 16 is effective for annual periods beginning on or after 1 January 2019, and the Group plans to adopt the new standard on the required effective date. AMENDMENTS TO IAS 27: EQUITY METHOD IN SEPARATE FINANCIAL STATEMENTS The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. Entities already applying IFRS and electing to change to the equity method in its separate financial statements will have to apply that change retrospectively. For first-time adopters of IFRS electing to use the equity method in its separate financial statements, they will be required to apply this method from the date of transition to IFRS. The amendments are effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments will not have any impact on the Group’s consolidated financial statements. ANNUAL IMPROVEMENTS 201–2014 CYCLE These improvements are effective for annual periods beginning on or after 1 January 2016. They include: • IFRS 5 Non-current Assets Held for Sale and Discontinued Operations • IFRS 7 Financial Instruments: Disclosures • IAS 19 Employee Benefits • IAS 34 Interim Financial Reporting These amendments are not expected to have any impact on the Group’s consolidated financial statements. 24 EVENTS AFTER THE BALANCE SHEET DATE Significant events after the balance sheet date that occur before the Board of Directors has approved the financial statements may make it necessary to change the annual financial statements or to disclose the matter in the notes to the financial statements. If new information emerges regarding a matter that exists on the balance sheet date, and the matter is significant, the financial statements must be changed. If events concern matters that arose after the balance sheet date, the matters may have to be disclosed in a note. No events have taken place after the balance sheet date that would have affected the financial statements or any assessments carried out.


Jotun - Annual Report 2015
To see the actual publication please follow the link above