ING Direct 2015 Annual Report Download - page 34

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
d) Other significant changes in 2015
ING Vysya Bank
In April 2015, the merger between ING Vysya Bank (‘ING Vysya’) and Kotak Mahindra Bank (‘Kotak’) was completed and the legal entity
ING Vysya ceased to exist. As a result of this transaction, ING holds a stake of 6.5% in the combined company, which operates under
the Kotak brand. The transaction resulted in a gain of EUR 367 million and is recognised in the line ‘Share of result from associates and
joint ventures’. The transaction did not materially impact the shareholders’ equity of ING Bank. As at 31 December 2015, ING accounts
for the investment in Kotak as an Available-for-sale equity investment.
For further information on the above transactions, reference is made to Note 5 ‘Investments’, Note 7 ‘Investments in associates and
joint ventures’, Note 11 ‘Assets held for sale’ and Note 50 ‘Other events’.
e) Upcoming changes in IFRS-EU after 2015
Changes to IFRS effective in 2016
On 1 January 2016, a number of changes to IFRS become effective under IFRS-EU. The implementation of these amendments will have
no significant impact on ING Bank’s results or financial position.
The list of upcoming changes to IFRS which are applicable for ING Bank:
• Annual Improvements Cycle 2010 – 2012:
• IFRS 2 Share-based Payment: Definitions of vesting conditions;
• IFRS 3 Business Combinations: Accounting for contingent considerations in a business combination;
• IFRS 8 Operating Segments: Aggregation of operating segments;
• IFRS 8 Operating Segments: Reconciliation of the total of the reportable segments’ assets to entity’s assets;
• IAS 16 Property, Plant and Equipment and IAS 38 Intangible assets: Revaluation method – proportionate restatement of
accumulated depreciation/amortisation;
• IAS 24 Related Party Disclosures: Key management personnel;
• Annual Improvement Cycle 2012 – 2014:
• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations: Changes in methods of disposal;
• IFRS 7 Financial Instruments: Disclosures: Servicing contracts;
• IFRS 7 Financial Instruments: Disclosures – Applicability of the offsetting disclosures to condensed interim financial statements;
• IAS 19 Employee Benefits: Discount rate – Regional market issue;
• IAS 34 Interim Financial Reporting: Disclosure of information ‘elsewhere in the interim financial report’;
• IFRS 11 Joint Arrangements: Accounting for acquisitions of interests in joint operations;
• IAS 1 Presentation of financial statements: Disclosure initiative – amendments to IAS 1;
• IAS 16 and IAS 38 Clarification of acceptable methods of depreciation and amortisation;
• IAS 19 Employee Benefits: Defined benefit plans - Employee contributions; and
• IAS 27 Separate financial statements: Equity method
IFRS 9 ‘Financial Instruments’
IFRS 9 ‘Financial Instruments’ was issued by the IASB in July 2014. IFRS 9 will replace IAS 39 ‘Financial Instruments: Recognition and
Measurement’ and includes requirements for classification and measurement of financial assets and liabilities, impairment of financial
assets and micro hedge accounting. The new requirements become effective as of 1 January 2018. The classification and
measurement and impairment requirements will be applied retrospectively by adjusting the opening balance sheet and opening
equity at 1 January 2018, with no restatement of comparative periods. IFRS 9 is not yet endorsed by the EU. When the actual
endorsement will take place is not clear; the current expectation is in the second half of 2016. It is expected that the implementation
of IFRS 9, if and when endorsed by the EU, will have a significant impact on Shareholders’ equity, Net result and/or Other
comprehensive income and disclosures.
Enhanced Disclosure Task Force (‘EDTF’)
In November 2015, the EDTF published a report on IFRS 9 recommended disclosures which may be useful to help the market
understand the upcoming changes as a result of using the Expected Credit Loss (‘ECL’) approach. Given that full IFRS 9 disclosures are
only required for the year ending 31 December 2018, the additional EDTF recommendations during the period before adoption aims at
promoting consistency and comparability across internationally active banks. ING Bank has adopted these recommendations as
transitional disclosures with an initial focus on qualitative disclosures.
ING Bank Annual Report 2015 32