Download STANDARDS, INTERPRETATION AND CHANGES TO PUBLISHED

Talanx Group. Annual Report 2013
is mandatory for financial years beginning on or after 1 January
2014; earlier application is permitted. The Group implemented
these amendments in the 2013 financial year in accordance with
the transition guidelines.
IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine”
must be applied for financial years beginning on or after 1 January
2013, but had no practical relevance for the Group.
STANDARDS, INTERPRETATION AND CHANGES TO
PUBLISHED STANDARDS, APPLICATION OF WHICH WAS
NOT YET MANDATORY IN 2013 AND WHICH WERE NOT
APPLIED EARLY BY THE GROUP
On 12 May 2011 the IASB published three new and two revised
standards governing consolidation, the accounting of interests in
associated companies and joint ventures, and the related disclosures in the Notes:
IFRS 10 “Consolidated Financial Statements” replaces the regulations
previously contained in IAS 27 “Consolidated and Separate Financial
Statements” and SIC 12 “Consolidation – Special purpose Entities”. It
defines the principle of control as the universal basis for establishing the existence of a parent-subsidiary relationship. The standard
also contains additional guidelines demonstrating when control
exists. In future the revised IAS 27 will contain only provisions on
accounting requirements for interests in subsidiaries, associated
companies and joint ventures disclosed in the parent company’s
individual financial statements. Aside from several minor changes,
the wording of the previous standard was retained. We are currently
examining the implications of the new IFRS 10 for the Group. Based
on current information, however, we do not expect any significant
change in consolidation decisions regarding our participating
interests and special purpose entities, nor any significant change
in the current recognition of these participating interests and special
purpose entities.
IFRS 11 “Joint Arrangements” addresses the accounting requirements
in cases where an entity shares management control over a joint
venture or joint operation. The new standard replaces the pertinent
regulations in IAS 31 “Interests in Joint Ventures” and SIC 13 “Jointly
Controlled Entities – Non-Monetary Contributions by Venturers”.
According to IFRS 11 it is no longer permitted to consolidate joint
ventures, e.g. arrangements where the parties have rights to the net
assets, on a proportional basis. The equity method must be applied
in future where an entity is classified as a joint venture. The Group
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does not expect any significant impact from this new rule as the
joint ventures in the financial statements are already included at
equity. According to the current status of the analysis there are
also no joint operations on the basis of which the Group has rights
to assets under an arrangement and liabilities for related debts.
The revised IAS 28 “Investments in Associates and Joint Ventures” is
being expanded to include rules governing accounting for interests
in joint ventures. The equity method must be applied as standard
in future. Another amendment affects accounting procedures in
accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” if only part of an interest in an associated
company/joint venture is held for sale. IFRS 5 must only be applied
for the portion held for sale.
Disclosure requirements relating to the consolidation and accounting treatment of interests in associated companies and joint ventures are brought together in IFRS 12 “Disclosure of Interests in
Other Entities”. To some extent, duties of disclosure under the new
standard for subsidiaries, associated companies, joint arrangements,
unconsolidated structured companies and all other participating
interests extend far beyond what was previously the case, the aim
being to provide users of financial statements with a clearer picture
of the nature of the company’s interests in other entities and the
effects on assets, financial position and net income, including risks.
We are currently reviewing the implications of these expanded
disclosure requirements for the Group.
Application of the provisions of IFRS 10, 11 and 12 and the amended
IAS 27 and 28 – ratified by the EU on 11 December 2012 – is mandatory
for financial years beginning on or after 1 January 2014.
In June 2012 the IASB published transitional provisions (amendments to IFRS 10, IFRS 11 and IFRS 12). The amendments clarify the
transition guidance and also provide additional relief, limiting the
requirement to provide comparative information. The effective date
of the amendments is aligned with the effective date of IFRS 10, 11
and 12. In October 2012 the IASB announced further amendments
to IFRS 10 and 12 and IAS 27, which contain an exception to the full
consolidation of controlled subsidiaries. These amendments provide
that parent companies meeting the definition of an investment
entity must measure their investments in subsidiaries at fair value
through profit or loss. As a non-investment entity, Talanx AG will
not be affected by this exception, meaning that this amendment
has no practical relevance for the consolidated financial statements.
The June 2012 amendment was ratified by the EU on 4 April 2013,
and the amendment announced in October 2012 was ratified on
20 November 2013.
CONSOLIDATED FINANCIAL STATEMENTS
290
NOTES
183 Consolidation
188 Non-current assets held for sale and
disposal groups
189 Nature of risks associated with insurance
contracts and financial instruments
209 Notes on the consolidated
balance sheet – assets
239 Notes on the consolidated
balance sheet – liabilities
258 Notes on the consolidated
statement of income
270 Other information
279 List of shareholdings for the consolidated
financial statements
288 Responsibility statement
FURTHER INFORMATION
151
152
Talanx Group. Annual Report 2013
The IASB adapted the provisions governing the set-off of financial
assets and liabilities and published changes on 16 December 2011 in
the form of amendments to IAS 32 “Financial Instruments: Presentation” – Offsetting Financial Assets and Financial Liabilities. The
offsetting requirements set down in IAS 32 were retained more or less
in their entirety and were merely clarified by additional guidelines
on application. The amendment is applicable retrospectively to
financial years beginning on or after 1 January 2014. We are currently
reviewing the implications of these two amendments, ratified by the
EU on 13 December 2012, for the consolidated financial statements.
In June 2013 the IASB adopted “Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39 “Financial
Instruments: Recognition and Measurement”). According to this
amendment, despite novation the derivative remains designated as a
hedging instrument in an existing hedging relationship. Application
of the amendments ratified by the EU in December 2013 is mandatory
for financial years beginning on or after 1 January 2014. The Group
does not expect these amendments to have any material impact.
On 20 May 2013 the IASB published IFRIC 21 “Levies”. This clarifies how
liabilities should be recognised for levies and in particular when these
liabilities which are imposed by a government body and do not fall
under the scope of a different standard, should be carried. Application
of this interpretation, which has not yet been ratified by the EU, is
mandatory for financial years beginning on or after 1 January 2014.
We are currently examining the impacts of this amendment.
On 21 November 2013 the IASB published “Defined Benefit Plans:
Employee Contributions” (amendments to IAS 19 [revised in 2011]).
This amendment clarified how companies should recognise contributions to defined benefit plans from employees or third parties.
This amendment – whose application is mandatory for financial
years beginning on or after 1 July 2014 – has not yet been ratified by
the EU. This amendment has no practical relevance for the Group.
In November 2009 the IASB published a new standard on the classification and measurement of financial instruments. IFRS 9 “Financial
Instruments” is the first step in a three-phase project intended to
replace IAS 39. Amongst other things, IFRS 9 introduces new provisions for classifying and measuring financial assets. In this context,
financial assets must be classified into two measurement categories
(at fair value or amortised cost). Crucial for this categorisation are the
contractually agreed upon cash flows associated with the financial
instrument as well as the type of financial-instrument management employed by the Group (business model). This standard was
expanded in October 2010 to include rules governing the accounting treatment of financial liabilities and derecognition of financial
instruments, the latter having been imported unchanged from IAS 39.
Furthermore, the IASB published a draft amendment on IFRS 9 in
November 2012, which provides for a third measurement model
for financial assets. Under certain conditions, debt instruments can
therefore be measured at fair value, recognising any changes in value
under “Other comprehensive income”. On 19 November 2013 the IASB
finalised phase 3 as part of the revision of IFRS 9 and published the
new section on the accounting treatment of hedging relationships
(hedge accounting). IFRS 9 no longer includes an initial application
date either. Consequently, the mandatory initial application date
from 1 January 2015 contained in IFRS 9 will be removed; the initial
application date is not expected before 1 January 2017. Neither IFRS 9
nor the consequential amendments mentioned have been ratified yet
by the EU. The Group has still to analyse the full implications of IFRS 9,
including the two additional phases (rules on recording impairments
and on recognising hedging relationships). It is already becoming
clear, however, that the revised rules will have an influence, inter alia,
on the accounting treatment of financial assets within the Group.
On 12 December 2013 and as part of the IFRS annual improvement
process the IASB published the outstanding document from the
2010–2012 Cycle and the collection of amendments for the 2011–2013
Cycle. Application of these amendments, which have not yet been
ratified by the EU, is mandatory for financial years beginning on or
after 1 July 2014. The Group is currently examining the impacts of
these amendments.
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OPPORTUNITIES SQUARED
42
COMBINED MANAGEMENT REPORT
140
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTES
142
144
145
146
148
149 General information
149 General accounting principles and application
of International Financial Reporting Standards
153 Accounting policies
172 Segment reporting
Balance sheet
Statement of income
Statement of comprehensive income
Statement of changes in shareholders’ equity
Cash flow statement