Published International Financial Reporting Standards (IFRS) and Interpretations (IFRIC), not yet applied/applicable


 

 

 

 

IFRS pronouncement

Adopted

EU endorsement

Published in the Official Journal of the EU

Effective date in EU

Application expected
in the 2012 financial year

 

 

 

 

Amendment to IFRS 7, Financial Instruments: Disclosures: Transfers
of Financial Assets

7.10.2010

22.11.2011

23.11.2011

1.7.2011

Amendments to IFRS 1, First-time Adoption of IFRS: Severe Hyperinflation and Removal of Fixed Dates for
First-time Adopters

20.12.2010

Pending

Pending

Expected: 1.7.2011

Amendment to IAS 12, Deferred taxes: Recovery of Underlying Assets

20.12.2010

Pending

Pending

Expected: 1.7.2012

 

 

 

 

 

Application expected
in the 2013 financial year or later

 

 

 

 

IFRS 9, Financial Instruments: Classification and Measurement:
Financial Assets

12.11.2009

Pending

Pending

Expected: 1.1.2015

IFRS 9, Financial Instruments: Classification and Measurement:
Financial Liabilities

28.10.2010

Pending

Pending

Expected: 1.1.2015

IFRS 10, Consolidated Financial Statements

12.5.2011

Pending

Pending

Expected: 1.1.2013

IFRS 11, Joint Arrangements

12.5.2011

Pending

Pending

Expected: 1.1.2013

IFRS 12, Disclosures of Interests in Other Entities

12.5.2011

Pending

Pending

Expected: 1.1.2013

IFRS 13, Fair Value Measurement

12.5.2011

Pending

Pending

Expected: 1.1.2013

Revised IAS 27,
Separate Financial Statements

12.5.2011

Pending

Pending

Expected: 1.1.2013

Revised IAS 28, Investments in Associates and Joint Ventures

12.5.2011

Pending

Pending

Expected: 1.1.2013

Amendment to IAS 1, Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income

16.6.2011

Pending

Pending

Expected: 1.7.2012

Revised IAS 19, Employee Benefits

16.6.2011

Pending

Pending

Expected: 1.1.2013

IFRIC 20, Stripping Costs in the
Production Phase of a Surface Mine

19.10.2011

Pending

Pending

Expected: 1.1.2013

Amendments to IFRS 9 and IFRS 7, Mandatory Effective Date and
Transition Disclosures

16.12.2011

Pending

Pending

Expected: 1.1.2015

Amendment to IAS 32 and IFRS 7, Offsetting Financial Assets and
Financial Liabilities

16.12.2011

Pending

Pending

Expected: 1.1.2013

In November 2009 the IASB adopted IFRS 9 Financial Instruments: Classification and Measurement – Financial Assets. The new standard describes the classification and measurement of financial assets and thereby concludes the first of three phases at the end of which the existing IAS 39 Financial Instruments: Recognition and Measurement is to be abolished. Phases II (Impairment) and III (Hedge Accounting) had not yet been adopted at the time these financial statements were prepared. Phase I has not yet been adopted as European law. The interpretation is applicable to financial years beginning on or after 1 January 2015. The effects of IFRS 9 on the Group’s net assets, financial and earnings position and the Group’s presentation are currently, indeed continuously, under review.

In addition to the IFRS 9 published in November 2009, on 28 October 2010 the IASB also issued IFRS 9 Financial Instruments: Classification and Measurement – Financial Liabilities. Financial liabilities can still be assigned to the measurement categories Amortised Cost or Fair Value. Under the new regulations a company applying the fair value option to measure its financial liabilities can no longer recognise in profit and loss any changes in fair value brought about by a change in its own credit risk, but must instead recognise them without effect on profit and loss under other comprehensive income in the statement of comprehensive income – and therefore directly in equity. It is possible to ignore this rule if such a presentation would result in an accounting mismatch in the income statement. The amendments have not yet been adopted as European law. The interpretation is applicable to financial years beginning on or after 1 January 2015. The effects of IFRS 9 on the Group’s net assets, financial and earnings position and the Group’s presentation are currently, indeed continuously, under review.

The new IFRS 10 Consolidated Financial Statements replaces the guidelines on control and consolidation included in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation: Special Purpose Vehicles. In the revised version, IAS 27 was renamed Separate Financial Statements and in the future will only deal with rules on separate IFRS financial statements. IFRS 10 changes the definition of control so that the same criteria are applied to all companies to determine a controlling relationship. This definition is supported by wide-ranging application guidelines illustrating the various criteria that can lead to the control of a company by the reporting company. In this definition, control requires power over the investee and variable returns. Power is defined as the ability to direct the activities of the investee company that have a significant effect on the variable returns. IFRS 10 thereby explicitly establishes the concept of de facto control and includes guidelines on substantive rights, as distinguished from protective rights, which do not give a company power over an investee. IFRS 10 is expected to apply retrospectively to financial years beginning on or after 1 January 2013. IFRS 10 is not currently anticipated to have a significant effect on the Lufthansa Group’s net assets, financial and earnings position and the Group’s presentation.

IFRS 11 Joint Arrangements alters the definition of joint ventures. A joint arrangement is defined as an agreement by which two or more parties exercise joint control. Joint control means that decisions on activities that have a significant effect on the returns from an agreement require the unanimous approval of the parties sharing control. Each party to a joint arrangement must account for their rights and obligations under the agreement in their financial statements. IFRS 11 distinguishes two types of joint arrangement: joint operations and joint ventures. The previous option of pro-rata consolidation of joint ventures has been abolished. Parties to a joint venture must account for the investment using the equity method. IFRS 11 is expected to apply retrospectively to financial years beginning on or after 1 January 2013. The effects of IFRS 11 on the Lufthansa Group’s net assets, financial and earnings position and the Group’s presentation are currently under review.

To comply with IFRS 12 Disclosure of Interests in Other Entities, companies must disclose information that enables users of financial statements to assess the nature, risks and financial effects associated with their investment in subsidiaries, associated companies, joint arrangements and unconsolidated structured entities (special purpose entities). IFRS 12 is expected to be retrospectively applicable to financial years beginning on or after 1 January 2013 and will increase the volume of disclosures in the Notes to the financial statements of Deutsche Lufthansa AG.

IFRS 13 Fair Value Measurement describes how fair value is to be measured for IFRS reporting and extends the disclosures to be made on fair value, but does not stipulate in which cases fair value is to be used. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value of a liability therefore reflects its default risk, i. e. the entity’s own credit risk. IFRS 13 stipulates the market conditions under which fair value measurement is possible or restricted and explains that measurement is made with reference to specific markets and not to specific companies. For non-financial assets fair value is to be measured on the basis of highest and best use from the perspective of a market participant. IFRS 13 is expected to be prospectively applicable to financial years beginning on or after 1 January 2013 and will increase the volume of disclosures in the Notes to the financial statements of Deutsche Lufthansa AG.

The amendments to IAS 1 Presentation of Financial Statements mainly relate to changes in the recognition of items of other comprehensive income. In future these must be presented separately as items which may be “recycled” in subsequent periods to profit or loss and those which will not be reclassified in this way. This amendment is expected to apply to financial years beginning on or after 1 January 2013. The effects this will have on the presentation of the statement of comprehensive income are currently under review.

The revised version of IAS 19 Employee Benefits includes new rules on the recognition, measurement and presentation of expenses for defined benefit pension plans and termination benefits. Actuarial gains and losses are to be recognised as revaluations directly in equity in the future, taking deferred taxes into account. The 10-per cent corridor rule previously used in the Lufthansa Group to avoid annual fluctuations in the balance sheet will then no longer be allowed. Changes in the discount rate used to measure pension obligations and for funded pension plans, fluctuations in the market value of plan assets, can in particular result in considerable, unpredictable fluctuations in the balance sheet and shifts between equity and liabilities. For funded defined benefit plans the same interest rate chosen to determine interest expenses and measure pension obligations is also to be used to measure interest income from plan assets. Defining a uniform interest rate will alter the net interest expense for pension obligations. Furthermore, the revised IAS 19 clarifies the meaning of “short-term”, “other long-term benefits” and “plan curtailments” and clarifies the amortisation of “past service cost”. These amendments can have an effect on the timing of the recognition in profit or loss of obligations under partial retirement and similar programmes. In addition, they will require more extensive disclosure of recognised amounts and existing risks from defined benefit plans and multi-employer plans. The amendments are applicable for financial years beginning on or after 1 January 2013. The future effects on the Group’s net assets, financial and earnings position are currently, indeed continuously, under review.

At the present time, the other new or amended IFRS pronouncements listed in the table are not considered to be of great relevance to the Lufthansa Group.

The Group has not voluntarily applied any of the new or amended regulations mentioned above before their binding date of application.