LensCrafters 2011 Annual Report Download - page 197

| 121 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
number of shares outstanding during the period. For the purpose of calculating the diluted
earnings per share, the Company adjusts the profit and loss attributable to ordinary equity
holders, and the weighted average number of shares outstanding, for the effect of all
dilutive potential ordinary shares.
Treasury Shares
Treasury shares are recorded as a reduction of stockholders’ equity. The original cost of
treasury shares, as well as gains or losses on the purchase, sale or cancellation of treasury
shares, are not recorded in the consolidated statement of income.
Certain new principles, amendments and interpretations are effective for reporting periods
beginning on or after January 1, 2011.
Amendments and interpretations of existing principles which are effective for reporting
periods beginning on January 1, 2011
IFRS 3 – Business Combinations: The amendment, applicable for annual periods
beginning on or after July 1, 2010, clarifies that contingent consideration balances arising
from business combinations whose acquisition date preceded the date when an entity
first applied IFRS 3 as issued in 2008, do not have to be adjusted upon application of this
IFRS. The amendment also clarifies that for each business combination, the acquirer shall
measure at the acquisition date components of non-controlling interests in the acquiree
that are present ownership interests and entitle the holder to a proportionate share
of the entity’s net assets in the event of liquidation either at fair value or the present
ownership instruments’ proportionate share in the recognized amounts of the acquiree’s
identifiable net assets. The amendment also specifies that an acquirer must measure
a liability or an equity instrument related to share-based payment transactions of the
acquiree or the replacement of an acquiree’s share-based payment transactions with
share-based payment transactions of the acquirer in accordance with the method set
forth in IFRS 2 at the acquisition date. The amendment had no significant effects on the
Group’s consolidated financial statements as of December 31, 2011.
IAS 24 (revised) – Related party disclosures, issued in November 2009. It supersedes IAS
24 – Related party disclosures, issued in 2003. The revised standard is mandatory for
periods beginning on or after January 1, 2011, clarifies and simplifies the definition of a
related party and removes the requirement for government-related entities to disclose
details of all transactions with the government and other government-related entities. The
amendment had no significant effects on the Group’s consolidated financial statements
as of December 31, 2011.
IFRIC 14 amendments – Prepayments of a minimum funding requirement, issued in
November 2009. The amendments, effective for annual periods beginning January 1, 2011,
correct an unintended consequence of IFRIC 14, IAS 19 – The limit on a defined benefit
asset, minimum funding requirements and their interactions. Without the amendments,
entities are not permitted to recognize as an asset certain voluntary prepayments for
2. NEW
ACCOUNTING
PRINCIPLES