38
39
Interim Financial Statements
Amendments to IAS 1: “Disclosure Initiative” (effective for annual periods
starting on or after 01/01/2016)
In December 2014, the IASB issued amendments to IAS 1. The aforementioned
amendments address settling the issues pertaining to the effective presentation
and disclosure requirements as well as the potential of entities to exercise judg-
ment under the preparation of financial statements. The amendments do not
affect the consolidated Financial Statements.
8.3 New Standards, Interpretations and Amendments to
existing Standards that have not been applied yet or have not
been adopted by the European Union
The following new Standards and amendments of IFRSs have been issued by
the International Accounting Standards Board (IASB), but their application has
not started yet or they have not been adopted by the European Union.
IFRS 14 “Regulatory Deferral Accounts” (effective for annual periods
starting on or after 01/01/2016)
In January 2014, the IASB issued a new Standard, IFRS 14. The aim of this inter-
im Standard is to enhance the comparability of financial reporting by entities that
are engaged in rate-regulated activities. Many countries have industry sectors
that are subject to rate regulation, whereby governments regulate the supply and
pricing of particular types of activity by private entities. The Group will examine
the impact of the above on its Financial Statements. The above have not been
adopted by the European Union, until the issuance of the final Standard.
IFRS 15 “Revenue from Contracts with Customers” (effective for annual
periods starting on or after 01/01/2018)
In May 2014, the IASB issued a new Standard, IFRS 15. The Standard fully con-
verges with the requirements for the recognition of revenue in both IFRS and US
GAAP. The key principles on which the Standard is based are consistent with
much of current practice. The new Standard is expected to improve financial
reporting by providing a more robust framework for addressing issues as they
arise, increasing comparability across industries and capital markets, provid-
ing enhanced disclosures and clarifying accounting for contract costs. The new
Standard will supersede IAS 11 “Construction Contracts”, IAS 18 “Revenue” and
several revenue related Interpretations. The Group will examine the impact of
the above on its Financial Statements. The above have not been adopted by the
European Union.
IFRS 9 “Financial Instruments” (effective for annual periods starting on
or after 01/01/2018)
In July 2014, the IASB issued the final version of IFRS 9. The package of improve-
ments introduced by the final version of the Standard, includes a logical model
for classification and measurement, a single, forward-looking “expected loss”
impairment model and a substantially-reformed approach to hedge accounting.
The Group will examine the impact of the above on its Financial Statements. The
above have not been adopted by the European Union.
Amendments to IFRS 10 and IAS 28: “Sale or Contribution of Assets be-
tween an Investor and its Associate or Joint Venture” (the IASB post-
poned the effective date of this amendment indefinitely)
In September 2014, the IASB published narrow scope amendments to IFRS 10
and IAS 28. The objective of the aforementioned amendments is to address an
acknowledged inconsistency between the requirements in IFRS 10 and those in
IAS 28, in dealing with the sale or contribution of assets between an investor and
its associate or joint venture. In December 2015, the IASB postponed the effec-
tive date of this amendments indefinitely pending the outcome of its research
project on the equity method of accounting. The Group will examine the impact
of the above on its Financial Statements. The above have not been adopted by
the European Union.
Amendments to IFRS 10, IFRS 12 and IAS 28:
“Investment Entities: Applying the Consoli-
dated Exception” (effective for annual periods
starting on or after 01/01/2016)
In December 2014, the IASB published narrow
scope amendments to IFRS 10, IFRS 11 and IAS
28. The aforementioned amendments introduce
explanation regarding accounting requirements for
investment entities, while providing exemptions in
particular cases, which decrease the costs related
to the implementation of the Standards. The Group
will examine the impact of the above on its Financial
Statements. The above have not been adopted by
the European Union.
IFRS 16 “Leases” (effective for annual periods
starting on or after 01/01/2019)
In January 2016, the IASB issued a new Standard,
IFRS 16. The objective of the project was to develop
a new Leases Standard that sets out the principles
that both parties to a contract, i.e. the customer
(‘lessee’) and the supplier (‘lessor’), apply to pro-
vide relevant information about leases in a manner
that faithfully represents those transactions. To meet
this objective, a lessee is required to recognise as-
sets and liabilities arising from a lease. The Group
will examine the impact of the above on its Financial
Statements. The above have not been adopted by
the European Union.
Amendments to IAS 12: “ Recognition of De-
ferred Tax Assets for Unrealized Losses” (ef-
fective for annual periods starting on or after
01/01/2017)
In January 2016, the IASB published narrow scope
amendments to IAS 12. The objective of the amend-
ments is to clarify the accounting for deferred tax
assets for unrealized losses on debt instruments
measured at fair value. The Group will examine the
impact of the above on its Financial Statements.
The above have not been adopted by the European
Union.
Amendments to IAS 7: “Disclosure Initiative”
(effective for annual periods starting on or after
01/01/2017)
In January 2016, the IASB published narrow scope
amendments to IAS 7. The objective of the amend-
ments is to enable users of financial statements to
evaluate changes in liabilities arising from financing
activities. The amendments will require entities to
provide disclosures that enable investors to evaluate
changes in liabilities arising from financing activities,
including changes arising from cash flows and non-
cash changes. The Group will examine the impact
of the above on its Financial Statements. The above
have not been adopted by the European Union.
Clarification to IFRS 15 “Revenue from Con-
tracts with Customers” (effective for annual pe-
riods starting on or after 01/01/2018)
In April 2016, the IASB published clarifications to IFRS 15. The amend-
ments to IFRS 15 do not change the underlying principles of the Stan-
dard, but clarify how those principles should be applied. The amend-
ments clarify how to identify a performance obligation in a contract,
how to determine whether a company is a principal or an agent and
how to determine whether the revenue from granting a license should
be recognized at a point in time or over time. The Group will examine
the impact of the above on its Financial Statements. The above have
not been adopted by the European Union.
Amendment to IFRS 2: “Classification and Measurement of
Share-based Payment Transactions” (effective for annual peri-
ods starting on or after 01/01/2018)
In June 2016, the IASB published narrow scope amendment to IFRS
2. The objective of this amendment is to clarify how to account for cer-
tain types of share-based payment transactions. More specifically, the
amendments provide requirements on the accounting for the effects
of vesting and non-vesting conditions on the measurement of cash-
settled share-based payments, for share-based payment transactions
with a net settlement feature for withholding tax obligation, as well as,
a modification to the terms and conditions of a share-based payment
that changes the classification of the transaction from cash-settled
to equity-settled. The Group will examine the impact of the above on
its Financial Statements. The above have not been adopted by the
European Union.
8.4 Pro forma figure “Operating Earnings before
Financial & Investment results, Tax, Depreciation
& Amortization” (Group EBITDA)
Pro forma figures (EBITDA, EBITDA margin, free cash flow, net debt)
are not governed by the International Financial Reporting Standards
(IFRS). Thus, these figures are calculated and presented by the Group
in a way that provides a more fair view of the financial performance
of its Business Sectors. The Group defines “Group EBITDA” as the
Operating earnings before any interest income and expenses, invest-
ment results, depreciation, amortization and before the effects of any
special factors. “Group EBITDA” is an important indicator used by
Mytilineos Group to manage the Group’s operating activities and to
measure the performance of the individual segments.
The special factors that affect the Group’s net profit / (losses) and
EBITDA are the following:
a) the share in the EBITDA of associates when these are active in one
of the Group’s reported Business Sector and
b) the effects of eliminations of any profit or loss fromasset construction
transactions of the Group with the associates.
It is noted that the Group financial statements, pre-
pared according to IAS 1 and IAS 28, include:
The Group’s profit realized in connection with the
construction of fixed assets on account of subsid-
iaries and associates, when these are active in one
of its reported Business Segments. Such profits are
deducted from the Group’s equity and fixed assets
and released in the Group accounts over the same
period as depreciation is charged. Consequently,
for the calculation of EBITDA (operational results
before depreciation), the Group does not eliminate
the profit from the construction of fixed assets as its
recovery through their use will effect only the profit
after depreciation.
The Group states that the calculation of “Group
EBITDA” may differ from the calculation method
used by other companies/groups. However, “Group
EBITDA” is calculated with consistency in each fi-
nancial reporting period and any other financial
analysis presented by the Group. Specifically finan-
cial results contain interest income/expense, while
investment results contain gains/loss of financial
assets at fair value through profit and loss, share of
results in associates companies and gains/losses
from the disposal of financial assets (such as sub-
sidiaries and associates).
Finally, the proforma figure “Group EBITDA”
should not be confused with the figure “Earnings
before income tax, financial results, depreciation
and amortization” calculated for the purposes of
6/448/11.10.2007 resolution of the Hellenic Capital
Committee, according to Circular No. 34, as the pur-
pose of the latter is not to define proforma figures
like EBITDA despite the familiar terminology used.
