52
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, 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. 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 performed an assessment of the
impact of IFRS 15 and the impact is considered not 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 in the
balance sheet. Jotun has performed preliminary calculations of
the effect of the change. Based on this preliminary assessment,
the impact would be a reduction in equity ratio, in the range of
1-3 percentage point. IFRS 16 will be 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.
24 EVENTS AFTER THE BALANCE SHEET DATE
No events have taken place after the balance sheet date that
would have affected the financial statements or any assessments
carried out.