–– IFRS 10, Consolidated Financial Statements and amended IAS 27,
Separate Financial Statements – the EU has stated that this standard
is to apply to annual reporting periods beginning on or after 1 January
2014. IFRS 10 supersedes the section in IAS 27 dealing with the preparation
of consolidated financial statements. IAS 27 will continue to
cover the treatment of subsidiaries, joint ventures and associates in
separate financial statements. The rules concerning the preparation
of consolidated financial statements remain unchanged. The amendment
is more about how a company is to go about deciding whether
it has a controlling interest and thus whether a company is to be
consolidated. The standard is to be applied retrospectively in accordance
with IAS 8, with certain modifications, including relief from
retrospective consolidation where this is not practically possible.
The standard is not expected to have any effect on the group.