This change is not expected to have any effect for

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Unformatted text preview: d is subject to approval by the Annual General Meeting on 16 May 2012. IFRS 10 Consolidated Financial Statements (effective from 1 January 2013, but not approved by the Eu). IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated financial statements. The changes introduced by IFRS 10 will require management to exercise significant judgement to determine which entities are controlled, and therefore, are required to be consolidated by a parent, compared with the requirements that were in IAS 27. This change is not expected to have any effect for the Group. Statement of compliance From 1 January 2005, as required by the European union’s IAS Regulation and the Norwegian Accounting Act, the Company has prepared its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European union (“Eu”). References to “IFRS” hereafter should be construed as references to IFRS as adopted by the Eu. Adoption of new and revised standards and interpretations The accounting policies adopted are consistent with those of the previous financial year. In addition, the Group has adopted the following new and amended standards and interpretations issued by the IASB and approved by the Eu that are relevant to its operations and effective for annual reporting periods beginning on 1 January 2011: • IAS 24 Related Party disclosures: Revised • Improvements to IFRS issued April 2010 • IAS 32 Financial Instruments: Presentation – Classification of Rights Issues • IFRIC 14 Prepayments of a Minimum Funding Requirement – Amended • IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments The Group has not early adopted any standards or interpretations in 2011. At the date of authorisation of these financial statements, the following standards and interpretations that could affect the Group were issued but not effective: IFRS 7 Financial Instruments – Disclosures (effective from 1 July 2011). The amendment contains new disclosures to enhance the transparency of disclosure requirements for the transfer of financial assets. The amendments will assist users to understand the implications of transfers of financial assets and the potential risks that may remain with the transferor. The amendment affects disclosure only and has no impact on the Group’s financial position or performance. IFRS 7 Financial Instruments – Disclosures (effective from 1 January 2013, but not approved by the Eu) The IASB has introduced new disclosure requirements in IFRS 7. These disclosures would provide users with information that is useful in (a) evaluating the effect of potential effect of netting arrangements on an entity’s financial position and (b) analysing and comparing financial statements prepared in accordance with IFRS. The amendment affects disclosure only and has no impact on the Group’s financial position or performance. IFRS 11 Joint Arrangements (effective from 1 January 2013, but not approved by the Eu). IFRS 11 replaces IAS 31 Interests in Joint Ventures. IFRS 11 deals with how a joint arrangement of which two or more parties have joint control should be classified. SIC-13 Jointly Controlled Entities – Non-monetary Contributions by Venturers has been withdrawn upon the issuance of IFRS 11. under IFRS 11, joint arrangements are classified as joint operations or joint ventures, depending on the rights and obligations of the parties to the arrangements. In contrast, under IAS 31, there are three types of joint arrangements: jointly controlled entities, jointly controlled assets and jointly controlled operations. In addition, joint ventures under IFRS 11 are required to be accounted for using the equity method of accounting, whereas jointly controlled entities under IAS 31 can be accounted for using the equity method of accounting or proportionate accounting. This change will have limited effect for the Group since the operative joint ventures as of 2011 are joint operations under the new IFRS and the Group applies the proportionate method of consolidation. Applying the method of accounting prescribed under IFRS 11 for joint operations would not have any significant impact. IFRS 12 Disclosure of Interests in Other Entities (effective from 1 January 2013, but not approved by the Eu). IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously included in IAS 31 and IAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required. IFRS 13 Fair Value Measurement (effective from 1 January 2013, but not approved by the Eu). IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provide...
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