Annual Financial Report for the period from1st of January to the 31st of December 2013
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New Standards, Interpretations and amendments to existing Standards which have not taken
effect yet or have not been adopted by the European Union
Τhe following new Standards, Revised Standards as well as the following Interpretations to the existing
Standards have been publicized but have not taken effect yet or have not been adopted by the European Union.
In particular:
IFRS 9 “Financial Instruments” (removal of mandatory effective date)
In November 2009, IASB issued the new Standard, the revised IFRS 9 “Financial Instruments: Recognition
and Measurement” which is the first step in IASB project to replace IAS 39. In October 2010, IASB expanded
IFRS 9 to add new requirements for classifying and measuring financial liabilities, derecognition of financial
instruments, impairment, and hedge accounting. IFRS 9 defines that all financial assets are initially measured
at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Subsequent measurement of financial assets ismade either at amortized cost or at fair value, depending on how
an entity manages its financial instruments (its business model) and the contractual cash flow characteristics
of the financial assets. IFRS 9 generally prohibits reclassification between categories, however, when an
entity changes its business model in a way that is significant to its operations, a re-assessment is required
of whether the initial determination remains appropriate. The standard requires all investments in equity
instruments to be measured at fair value. However, if an equity investment is not held for trading, an entity
can make an irrevocable election at initial recognition to measure it at fair value through other comprehensive
income with only dividend income recognized in profit or loss. Fair value profit and loss is not subsequently
carried forward to income statement while dividend income shall still be recognized in the income statement.
IFRS 9 abolishes “cost exception” for unquoted equities and derivatives in unquoted shares, while providing
guidance on when cost represents fair value estimation. In November 2013, IASB issued amendments to IFRS
9. These amendments make three important changes to IFRS 9. Firstly, a new chapter on hedge accounting
has been added to IFRS 9. This represents a major overhaul of hedge accounting and puts in place a new
model that introduces significant improvements principally by aligning the accounting more closely with risk
management. There are also improvements to the disclosures about hedge accounting and risk management.
The second amendment makes the improvements to the reporting of changes in the fair value of an entity’s
own debt contained in IFRS 9 more readily available. The third change is the removal of the mandatory effective
date of IFRS 9, because the impairment phase of the IFRS 9 project is not yet completed that would allow
sufficient time for entities to prepare to apply the Standard. Entities may however still choose to apply IFRS
9. The Group’s/Entity’s Management is not going to adopt the requirements of IFRS 9 earlier following the
relevant approval of the Standard by the European Union. The current Standard has not been adopted by the
European Union yet.
IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements” and IFRS 12 “Disclosure of
Interests in Other Entities”, IAS 27 “Separate Financial Statements” and IAS 28 “Investments in Associates
and Joint Ventures” (effective for annual periods beginning on or after 01/01/2014)
In May 2011, IASB issued three new Standards, namely IFRS 10, IFRS 11 and IFRS 12. IFRS 10 “Consolidated
Financial Statements” sets out a new consolidation method, defining control as the basis under consolidation
of all types of entities. IFRS 10 supersedes IAS 27 “Consolidated and Separate Financial Statements” and SIC
12 “Consolidation — Special Purpose Entities”. IFRS 11 “Joint Arrangements” sets out the principles regarding
financial reporting of joint arrangements participants. IFRS 11 supersedes IAS 31 “Interests in Joint Ventures”
and SIC 13 “Jointly Controlled Entities – Non-Monetary Contributions by Venturers”. IFRS 12 “Disclosure
of Interests in Other Entities” unites, improves and supersedes disclosure requirements for all forms of
interests in subsidiaries, under common audit, associates and non-consolidated entities. As a result of these
