BsimEiHHta Notes to the consolidated financial statements 3 Significant accounting policies (continued) Ahold at a glance I Business review I Governance I Financials I Investors property, plant and equipment, and intangible assets, respectively. The Company believes that the straight-line method is the most appropriate method to reflect consumption of economic benefits in the respective assets and accordingly does not anticipate that the application of these amendments will have a significant effect on the future consolidated financial statements. Narrow scope amendments to IAS 27 "Equity Method in Separate Financial Statements," will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The amendments are effective for annual periods beginning on or after January 1, 2016, and are to be applied retrospectively. Based on Ahold's current financial position, these amendments will not have an effect on the future consolidated financial statements. Narrow scope amendments to IFRS 10 and IAS 28, "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture," clarified an inconsistency between these standards with regards to the sale or contribution of assets between an investor and its associate or joint venture. Following the amendments, a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. The Company has yet to assess the amendments' full impact. The amendments will be effective for annual periods commencing on or after January 1, 2016. Annual improvements to IFRSs 2010-2012 Cycle made a number of amendments to various IFRSs, which, based on Ahold's current financial position, the Company anticipates will not have a significant effect on the future consolidated financial statements. The amendments are summarized as follows: a The amendments to IFRS 2, "Share-based Payment," changed the definitions of "vesting conditions" and "market condition" and added definitions for "performance condition" and "service condition," which were previously included within the definition of "vesting condition." a The amendments to IFRS 3, "Business Combinations," clarify that contingent consideration that is classified as an asset or a liability should be measured at fair value at each reporting date with changes in fair value (other than measurement period adjustments) being recognized in profit and loss. a The amendments to IFRS 8, "Operating Segments," require an entity to disclose the judgments made by management in applying the aggregation criteria to operating segments. They also clarify that a reconciliation of the total of the reportable segments' assets to the entity's assets should only be provided if the segment assets are regularly provided to the chief operating decision-maker, a The amendments to the basis for conclusions on IFRS 13, "Fair Value Measurement," clarify that the issuance of IFRS 13, and subsequent amendments to IAS 39 and IFRS 9, did not remove the ability to measure short term receivables and payables with no stated interest rate at their invoice amounts without discounting, if the effect of discounting is immaterial. a The amendments to IAS 16, "Property, Plan and Equipment," and IAS 38 "Intangible Assets," remove perceived inconsistencies in the accounting for accumulated depreciation amortization when an item of property, plant and equipment or an intangible asset is revalued. Ahold Annual Report 2014 a The amendments to IAS 24, "Related Party Disclosures," clarify that a management entity providing key management personnel services to a reporting entity is a related party of the reporting entity. Consequently, the reporting entity should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. Annual improvements to IFRSs 2011-2013 Cycle made a number of amendments to various IFRSs, which, based on Ahold's current financial position, the Company anticipates will not have a significant effect on the future consolidated financial statements. The amendments are summarized as follows: a The amendments to IFRS 3, "Business Combinations," clarify that the standard does not apply to the accounting for the formation of all types of joint arrangements in the financial statements of the joint arrangement itself, a The amendments to IFRS 13, "Fair Value Measurement," clarify that the scope of the portfolio exception for measuring the fair value of a group of financial assets or financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with, IAS 39 or IFRS 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within IAS 32. a The amendments to IAS 40, "Investment Property," clarify that IAS 40 and IFRS 3 are not mutually exclusive and application of both standards may be required. Consequently, an entity acquiring investment property must determine whether the property meets the definition of investment property and whether the transaction meets the definition of a business combination. Annual improvements to IFRSs 2012-2014 Cycle made a number of amendments to various IFRSs, which, based on Ahold's current financial position, the Company anticipates will not have a significant effect on the future consolidated financial statements. The amendments are summarized as follows: a The amendments to IFRS 5, "Non-current Assets Held for Sale and Discontinued Operations," added specific guidance for cases in which an entity reclassifies an asset from held for sale to held for distribution to shareholders or vice versa and cases in which held-for-distribution accounting is discontinued. a The amendments to IFRS 7 "Financial Instruments: Disclosures," include a description of the term "continuing involvement" for the purpose of the transfer disclosures. a The amendments to IAS 19, "Employee Benefits," clarify that the high-quality corporate bonds used in estimating the discount rate for post-employment benefits should be denominated in the same currency as the benefits to be paid. IFRIC 21 addresses the issue of when to recognize a liability to pay a levy imposed by a government. The interpretation defines a levy and specifies that the obligating event that gives rise to the liability is the activity that triggers the payment of the levy, as identified by legislation. The Interpretation provides guidance on how different levy arrangements should be accounted for. In particular, it clarifies that neither economic compulsion nor the going concern basis of financial statements preparation implies that an entity has a present obligation to pay a levy that will be triggered by operating in a future period. IFRIC 21 was endorsed by the EU on June 13, 2014, and is effective for annual periods beginning on or after June 17 2014. The adoption of IFRIC 21 is not expected to have any financial effect on the consolidated financial statements of the Group. There are no other IFRSs or IFRIC interpretations that have been issued but are not yet effective that are expected to have a material effect on the future consolidated financial statements.

Jaarverslagen | 2014 | | pagina 148