BT 2011 Annual Report Download - page 102

FINANCIAL STATEMENTS
99BT GROUP PLC ANNUAL REPORT & FORM 20-F 2011
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS
Accounting standards, interpretations and
amendments to published standards
adopted in the year ended 31 March 2011
The following new, revised and amended standards and
interpretations were adopted in 2011. They have had no significant
impact on the group’s financial position or results of operations for
the current or prior years but may impact the accounting for future
transactions or arrangements.
•IFRS 3 (Revised) ‘Business Combinations’;
•IAS 27 (Revised) ‘Consolidated and Separate Financial
Statements’;
•IFRIC 17 ‘Distributions of Non-cash Assets to Owners’;
•Amendment to IAS 39 ‘Financial Instruments: Recognition and
Measurement: Eligible Hedged items’;
•Amendment to IAS 32 ‘Financial Instruments: Presentation –
Classification of Rights Issues’; and
•Improvements to IFRSs 2009.
Accounting standards, interpretations and
amendments to published standards not
yet effective
Certain new standards, interpretations and amendments to existing
standards have been published that are mandatory for the group’s
accounting periods beginning on or after 1 April 2011 or later
periods. Those which are considered to be relevant to the group’s
operations are set out below.
IFRS 9 ‘Financial Instruments’ (effective 1 April 2013)
IFRS 9 represents the first phase of the IASB’s project to replace
IAS 39 ‘Financial Instruments: Recognition and Measurement’. It
sets out the classification and measurement criteria for financial
assets and financial liabilities and requires all financial assets,
including assets currently classified under IAS 39 as available-for-
sale, to be measured at fair value through profit and loss unless the
assets can be classified as held at amortised cost. Qualifying equity
investments held at fair value may have their fair value changes
taken through other comprehensive income by election. The group
is currently assessing the impact of the standard on its results,
financial position and cash flows.
Those standards, interpretations and amendments which are not
currently expected to have a significant impact on the group’s
financial statements, are as follows:
Amendments to IAS 24 ‘Related Party Disclosures’ (effective
1April 2011)
These amendments clarify the definition of a related party and
provides some exemptions for government-related entities.
Amendment to IFRIC 14 ‘Prepayments of a Minimum Funding
Requirement’ (effective 1 April 2011)
This amendment permits a voluntary prepayment of a minimum
funding requirement to be recognised as an asset.
IFRIC 19 ‘Extinguishing Financial Liabilities with Equity
Instruments’ (effective 1 April 2011)
This interpretation clarifies the accounting when an entity
renegotiates the terms of its debt with the result that the liability is
settled in part or in full by the debtor issuing its own equity
instrument to the creditor.
Improvements to IFRSs 2010 (effective 1 April 2011)
This is the third set of amendments published under the IASB’s
annual improvements process and incorporate minor amendments
to seven standards and interpretations.
Amendments to IFRS 1 ‘First-time Adoption of International
Financial Reporting Standards’ (effective 1 July 2011)
These amendments provide limited exemption from comparative
IFRS 7 disclosures for IFRS first-time adopters.
Amendments to IFRS 7 ‘Financial Instruments: Disclosures’
(effective 1 April 2012)
These amendments are intended to provide greater transparency
around risk exposures when a financial asset is transferred but the
transferor retains some level of continuing exposure in the asset.
The amendments also require disclosures where transfers of
financial assets are not evenly distributed throughout the period.
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