ANNUAL REPORT ‘12
NOTES TO THE FINANCIAL STATEMENTS
182
• IFRS 7 (alteration), “Disclosures – offsetting financial assets and financial liabilities” (applicable to reporting
periods beginning on or after 1 January 2013). This alteration is part of the “asset and liability offsetting” project
of IASB and introduces new disclosure requirements for offset rights (of assets and liabilities) not entered on
the accounts, the offset assets and liabilities and the effect of these offsets on the exposure to credit risk. The
Group will apply this norm in the reporting period in which it comes into effect.
• IAS 32 (alteration), “Offsetting of financial assets and liabilities” (applicable to reporting periods beginning
on or after 1 January 2014). This alteration is part of the “asset and liability offsetting” project of IASB, which
clarifies the expression “has a legally enforceable right to set off the amounts” and clarifies that some systems
for settlement at gross amounts (clearinghouses) may be equivalent to offsetting at net amounts. The Group
will apply this norm in the reporting period in which it comes into effect.
• IFRS 9 (new), “Financial Instruments: recognition and measurement” (applicable to reporting periods beginning
on or after 1 January 2015). This norm is still awaiting adoption by the European Union. This is the first phase
of IFRS 9, which foresees two categories of measurement: amortised cost and fair value. All equity instruments
are measured at fair value. A financial instrument is measured at amortised cost only when the entity holds it
to receive contractual cash flows and these cash flows represent the nominal value and interest. Otherwise,
financial instruments are valued at their fair value through the results. The Group will apply IFRS 9 in the reporting
period in which it comes into effect.
Disclosures
• IFRIC 20 (new), “Stripping costs in the production phase of a surface mine” (applicable to reporting periods
beginning on or after 1 January 2013). This interpretation relates to the recognition of stripping costs as an
asset, in the initial phase of a surface mine. It considers that the stripping generates two potential benefits:
the immediate extraction of mineral resources and the opening up of access to additional quantities of mineral
resources that may be extracted in the future. This interpretation does not apply to the Group.
2.3_CONSOLIDATION
Subsidiaries
Subsidiaries include all those entities (including Special Purpose Entities) over which the Group has decision making
powers in terms of financial and operational policies, generally represented by more than half of voting rights.
The existence and the effects of potential voting rights that can be exercised or converted are considered when
evaluating if the Group has control over another entity. Subsidiaries are consolidated into the Group from the date
on which control is transferred to the Group and they are excluded from the consolidated Group on the date on
which control ceases.
The purchase method was used in accounting concerning the acquisition of subsidiaries. The cost of an acquisition
is assessed by the fair value of the goods handed over, capital instruments issued and liabilities incurred or under-
taken on the date of the acquisition. The transaction costs are recorded as expenses when incurred, in accordance
with IFRS 3R.
