The amendment affects presentation only and has no

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Unformatted text preview: s guidance on how to measure fair value under IFRS when fair value is required or permitted. The Group is currently assessing the impact that this standard will have on the financial position and performance. IAS 1 Presentation of Financial statements – amended (effective from 1 July 2012, but not yet approved by the Eu). The amendments to IAS 1 changes the grouping of items presented in Other Comprehensive Income. Items that could be reclassified (or ‘recycled’) to profit or loss at a future point in time (for example, /page 25/ telenor annual report 2011 notes to the financial statements / telenor group upon derecognition or settlement) would be presented separately from items that will never be reclassified. The amendment affects presentation only and has no impact on the Group’s financial position or performance. IAS 19 (as revised in 2011) Employee Benefits (effective from 1 January 2013, but not approved by the Eu). The IASB has issued numerous amendments to IAS 19. These range from fundamental changes such as: to eliminate the corridor approach and recognise all actuarial gains and losses in Other Comprehensive Income as they occur; to immediately recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability (asset). The estimated negative effect on the equity as of 1 January 2012 of removing the corridor method is NOK 1.2 billion. IAS 27 (as revised in 2011) Separate Financial Statements (effective from 1 January 2013, but not approved by the Eu). As a consequence of the new IFRS 10 and IFRS 12, what remains of IAS 27 is limited to accounting for subsidiaries, jointly controlled entities, and associates in separate financial statements. IAS 28 (as revised in 2011) Investments in Associates and Joint Ventures (effective from 1 January 2013, but not approved by the Eu). As a consequence of the new IFRS 11 and IFRS 12, IAS 28 has been renamed IAS 28 Investments in Associates and Joint Ventures, and describes the application of the equity method to investments in joint ventures in addition to associates. The management anticipates that these standards and interpretations will be adopted at the dates stated above provided that the standards and interpretations are approved by the Eu. / 02 / Summary of significant accounting policies Basis of preparation The consolidated financial statements have been prepared on a historical cost basis, except for financial assets available for sale (primarily shares owned less than 20%) and derivative financial instruments, which are carried at fair value. Loans, receivables and other financial obligations are carried at amortised cost. The consolidated financial statements are presented in Norwegian Kroner (NOK). Amounts are rounded to the nearest million, unless otherwise stated. As a result of rounding differences, amounts and percentages may not add up to the total. at the date of the business combination and the non-controlling interests’ share of changes in equity since the date of the business combination. The principle for measuring non-controlling interests is determined separately for each business combination A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary it derecognises the assets, liabilities, noncontrolling interest and any cumulative translation differences in relation to the subsidiary. Any investment retained at the date when control is lost is measured at fair value and a gain/loss is recognised. Basis of consolidation and non-controlling interests The consolidated financial statements include the financial statements of Telenor ASA and entities controlled by Telenor ASA (the Group). Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Control normally exists when the Group has more than 50% of the voting power through ownership or agreements, except where non-controlling interests are such that a non-controlling shareholder is able to prevent the Group from exercising control. For acquisition of non-controlling interest prior to 1 January 2010, the following key difference applies: • For acquisitions of non–controlling interest the difference between the consideration and the fair value of the share of the net assets required was recognised in goodwill. The change in fair value from the date of obtaining control was recognised as an equity transaction. In addition control may exist without having 50% voting power through ownership or agreements as a consequence of de facto control. De facto control is the ability to exercise control through the majority of the votes at the General Meeting and at the Board of Directors meeting, without the legal right to exercise unilateral control. Entities where the Group ha...
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