Unilever 2015 Annual Report Download - page 102

The roup does not currently beleve adopton of the followng
new standards would have a materal mpact on the consoldated
results or fnancal poston of the roup
• Amendments to IFRS 5 ‘Non-urrent Assets Held for Sale and
Dscontnued Operatons’ adds specfc gudance n IFRS 5 for
cases n whch an entty reclassfes an asset from held for
sale to held for dstrbuton to owners or vce versa
• IFRS 14 ‘Regulatory Deferral Accounts’ permts frst tme
adopters of IFRS to contnue to account for amounts related
to rate regulaton n accordance wth ther prevous AAP
The standard does not apply to the roup and has not been
endorsed by the EU yet
• The ‘Dsclosure Intatve’ ams at clarfyng IAS 1 ‘Presentaton
of Fnancal Statements’ through explorng how presentaton
and dsclosure prncples and requrements n exstng
standards can be mproved to enable preparers n exercsng
ther udgement n presentng ther fnancal reports
• Amendments to IAS 16 ‘Property, Plant and Equpment’ and
IAS 38 ‘Intangble Assets’ covers clarfcaton of the prncple
of the bass of deprecaton and revenue based methods are
not approprate
• Amendments to IAS 19 ‘Employee Benefts’ clarfes that the
hgh qualty corporate bonds used n estmatng the dscount
rate for post-employment benefts should be denomnated
n the same currency as the benefts to be pad
• Amendments to IAS 41 ‘Agrculture Bearer Plants’ change
the accountng for bologcal assets that meet the defnton
of bearer plants These wll now be n the scope of IAS 16
‘Property, Plant and Equpment’
The roup s currently assessng the mpact of the followng
new standards that are not yet effectve and s yet to quantfy
the potental mpact
• IFRS 9 ‘Fnancal Instruments’ (effectve from the year endng
31 December 2018) reflects all phases of the fnancal
nstruments proect and replaces IAS 39 ‘Fnancal
Instruments Recognton and Measurement’ The standard
ntroduces new requrements for classfcaton and
measurement of fnancal nstruments, a new expected credt
loss model for calculatng mparment on fnancal assets and
new general hedge accountng requrements Based on work
performed we expect the adopton of IFRS 9 to mpact the
classfcaton and measurement of certan fnancal assets not
fnancal labltes Work on the mpact of the new mparment
and hedge accountng requrements s n the early stages and
we expect new processes and IT systems may be requred
• IFRS 15 ‘Revenue from ontracts wth ustomers’ (effectve
from the year ended 31 December 2018) supersedes all exstng
revenue recognton requrements under IFRS It s based on
the prncple that revenue s recognsed when control of goods
or servces s transferred and provdes a sngle, prncple-
based model It apples to all transactons to provde goods and
servces except those n the scope of other standards and
replaces the separate models for goods, servces and
constructon contracts under current IFRS
Unlever has commenced work to tran our people and
dentfy areas of dvergence wth current practce Based on
a prelmnary assessment from work performed to date, the
roup beleves that the adopton of IFRS 15 wll not have a
materal mpact on consoldated results or fnancal poston
but work s ongong
• IFRS 16 ‘Leases’ was ssued on 13 January 2016 and s effectve
from the year ended 31 December 2019 The standard replaces
all exstng lease accountng requrements and represents a
sgnfcant change n the accountng and reportng of leases, wth
more assets and labltes to be reported on the balance sheet
and a dfferent recognton of lease costs Unlever wll begn to
assess the mpact of ths standard on the roup durng 2016
1 AOUNTIN INFORMATION
AND POLIIES ONTINUED
Informaton about crtcal udgements n applyng accountng
polces, as well as estmates and assumptons that have the most
sgnfcant rsk of causng a materal adustment to the carryng
amounts of assets and labltes wthn the next fnancal year,
are ncluded n the followng notes
• separate presentaton of tems n the ncome statement – note 3
• measurement of defned beneft oblgatons – note 4B
• utlsaton of tax losses and recognton of other deferred tax
assets – note 6B
• key assumptons used n dscounted cash flow proectons –
note 9
• lkelhood of occurrence of provsons and contngences,
ncludng drect and ndrect tax nvestgatons and audts –
notes 19 and 20 and
• measurement of consderaton and assets and labltes
acqured as part of busness combnatons – note 21
REENT AOUNTIN DEVELOPMENTS
ADOPTED BY THE ROUP
The followng new and amended standards are relevant to the
roup and have been adopted for the frst tme n these fnancal
statements, wth no materal mpact
• Amendments to IFRS 2 ‘Share based Payment’ clarfes ssues
relatng to the defntons of performance and servce
condtons whch are vestng condtons
• Amendments to IFRS 3 ‘Busness ombnatons’ clarfes when
other applcable IFRSs should be referred to when determnng
the classfcaton of contngent consderaton as a fnancal
lablty or equty nstrument
• Amendments to IFRS 3 ‘Busness ombnatons’ clarfes that
t excludes from ts scope the accountng for the formaton of
a ont arrangement n the fnancal statements of the ont
arrangement tself
• Amendments to IFRS 8 ‘Operatng Segments’ clarfes that
enttes should dsclose those factors that are used to dentfy
the entty’s reportable segments when operatng segments
have been aggregated
• Amendments to IFRS 13 ‘Far Value Measurement’ clarfes
that the portfolo excepton n IFRS 13 can be appled not only
to fnancal assets and fnancal labltes, but also to other
contracts wthn the scope of IAS 39 ‘Fnancal Instruments
Recognton and Measurement’
• Amendment to IAS 16 ‘Property, Plant and Equpment’ and IAS
38 ‘Intangble Assets’ clarfes that when an tem of property,
plant and equpment or an ntangble asset s revalued the
gross carryng amount s adusted n a manner that s
consstent wth the revaluaton of the carryng amount
• Amendments to IAS 19 ‘Defned Beneft Plans Employee
ontrbutons’ smplfes the accountng for contrbutons that
are ndependent of the number of years of employee servce
• Amendments to IAS 24 ‘Related Party Dsclosures’ clarfes
that an entty provdng key management personnel servces
to the reportng entty or to the parent of the reportng entty
s a related party of the reportng entty
NOT ADOPTED BY THE ROUP
All of the followng new standards, amendments and nterpretatons
are effectve from 1 January 2016 unless otherwse stated Standards
have been endorsed by the EU unless otherwse stated
95Unilever Annual Report and Accounts 2015 Financial statements