Mercedes 2013 Annual Report Download - page 190

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IFRSs issued but neither EU endorsed nor yet adopted.
IFRS 9 Financial Instruments reflects the first and third phase
of the IASB project to replace IAS 39 and deals with the
classification and measurement of financial assets and financial
liabilities as well as regulations for general hedge accounting.
Accordingly, in the future, financial assets will be classified and
measured either at amortized cost or at fair value. The provi-
sions relating to financial liabilities will generally be adopted from
IAS 39. With the amendment to IFRS 9 issued in November
2013, mandatory adoption as of January 1, 2015 was cancelled.
A new adoption date will be defined only when the standard
has been finalized. Only then endorsement by the EU is planned.
The analysis of the effects of applying IFRS 9 on the
con so lidated financial statements has not yet been finished.
Other IFRSs issued but not EU endorsed are not expected
to have a significant influence on the Group’s financial position,
cash flows or earnings. Subject to EU endorsement of these
standards, which are then to be adopted in future periods,
Daimler currently does not plan to apply these standards earlier.
Presentation. Presentation in the statement of financial
position differentiates between current and non-current assets
and liabilities. Assets and liabilities are classified as current
if they mature within one year or within a longer and normal
operating cycle. Deferred tax assets and liabilities as well
as assets and provisions for pensions and similar obligations
are generally presented as non-current items.
The consolidated statement of income is presented using
the cost-of-sales method.
Commercial practices with respect to certain products
manufactured by the Group necessitate that sales financing,
including leasing alternatives, be made available to the
Group’s customers. Accordingly, the Group’s consolidated
financial statements are significantly influenced by the
activities of its financial services business.
To enhance readers’ understanding of the Group’s consolidated
financial statements, unaudited information with respect
to the results of operations and financial position of the Group’s
industrial and financial services business activities (Daimler
Financial Services) is provided in addition to the audited conso-
lidated financial statements. Such information, however,
is not required by IFRS and is not intended to, and does not
represent the separate IFRS results of operations and finan-
cial position of the Group’s industrial or financial services
business activities. Eliminations of the effects of transactions
between the industrial and financial services businesses
have generally been allocated to the industrial business columns.
The amendments to IAS 36 Recoverable Amount Disclosures
for Non-Financial Assets are applied earlier in 2013.
Accordingly there is no requirement to disclose the recover-
able amount of cash-generating units.
All other IFRSs with an initial application in the EU
as of January 1, 2013 had no significant impact on the
consolidated financial statements.
IFRSs issued and EU endorsed but not yet adopted.
In May 2011, the IASB issued three new standards that provide
guidance with respect to accounting for investments of the
reporting entity in other entities. The EU endorsed the standards
in December 2012. IFRS 10 Consolidated Financial Statements
supersedes consolidation rules in IAS 27 Consolidated and
Separate Financial Statements as well as SIC-12 Consolidation –
Special Purpose Entities. IFRS 10 establishes a single
con solidation model based on control that applies to all entities
irrespective of the type of controlled entity. According to the
new model control exists if the potential parent company has
the power of decision over the potential subsidiary based on
voting rights or other rights, if it participates in positive or nega-
tive variable returns from the potential subsidiary, and if it
can affect these returns by its power of decision. The standard
is not expected to have a significant influence on the Group’s
Financial Statements.
IFRS 11 Joint Arrangements provides new guidance on account-
ing for joint arrangements. The standard supersedes IAS 31
Interests in Joint Ventures as well as SIC-13 Jointly Controlled
Entities – Non-Monetary Contributions by Ventures. In the
future, it has to be decided whether a joint operation or a joint
venture exists. In a joint venture the parties that have joint
control have rights to the net assets. A joint operation exists,
if the parties that have joint control have rights to the assets
and obligations for the liabilities. In the case of a joint operation
the proportionate assets, liabilities, revenues and expenses
have to be recognized. Interests in a joint venture shall be
accounted for as an investment using the equity method. The
identified joint operations at Daimler do not have a signi-
ficant influence on the Group’s Financial Statements. Therefore,
Daimler continues to account for the investments using the
equity method or the investments are measured at amortized
costs.
IFRS 12 Disclosure of Interests in Other Entities provides guid-
ance on disclosure requirements for interests in other entities
by combining existing disclosure requirements from several
standards in one comprehensive disclosure standard.
Daimler will apply the new consolidation standards as of the
mandatory effective date for IFRS users in the EU as of January 1,
2014 on a retrospective basis.
Other IFRSs and interpretations issued are not expected to
have a significant influence on the Group’s financial position,
cash flows or earnings.