2.2 Initial Application of New, Revised or Amended IASB Pronouncements
IFRIC 21 Levies
2.3 Summary of Significant Accounting Policies
Principles of Consolidation
FINANCIAL STATEMENTS
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to their fair value measurement as a
whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable;
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
The Group has established detailed procedures in connection with acquisition or disposal of non-financial assets and related
valuations. Above a certain threshold, the valuation process is centrally led by the Group's internal valuation teams, with t he final
valuation requiring Group CEO and in certain cases Board of Directors approval. In this process, external experts can be
appointed to support the valuation, which is decided on a case-by-case basis. The Group gives prominence to using valuation
techniques based on the income approach (e.g.: discounted cash-flow) and uses other techniques, like market approach, as
supporting or benchmarking tools.
Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair
values are disclosed are summarized in the respective individual notes.
The accounting policies adopted are consistent with those of the previous financial year except for the following new, amended
or revised IASB pronouncements that have been adopted as of January 1, 2014:
Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities;
Amendments to IFRS 13 Short-term Receivables and Payables issued as part of Annual Improvements 2010 - 2012 Cycle;
Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities;
Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting; and
IFRIC 21 Levies.
Where the adoption of a new, amended or revised pronouncement has a significant impact on the presentation of the financial
statements or performance of the Group, its impact is described below.
The interpretation clarifies the accounting for an obligation to pay a levy that is not income tax. In doing so, IFRIC 21 defines a
levy very widely as an outflow of resources embodying economic benefits that is imposed by governments on entities in
accordance with legislation and are (i) not included within the scope of other IFRS and (ii) not fines or penalties imposed for
breaches of legislation. The interpretation then addresses what the obligating event is that gives rise to pay a levy and when a
liability should be recognized, i.e. at after which point of time the Group can no longer avoid the outflow of economic benefit by its
own actions. IFRIC 21 had no impact on the 2014 full year financial statements.
The principal accounting policies applied in the preparation of these consolidated financial statements are described below.
These policies have been consistently applied for all financial years presented except as explained in Note 2.2.
In the event of the presentation of discontinued operations, the comparative income statement is re-presented as if the operation
presented as discontinued operations during the period had been discontinued from the start of the comparative period (see Note
5.3).
The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in
similar circumstances. Subsidiaries are fully consolidated, while investments in joint ventures are accounted for using the equity
method. Accounting policies of subsidiaries and joint ventures have been adjusted, where necessary, to ensure consistency with
the Group policies.
Investments in subsidiaries: Subsidiaries are all entities - including structured entities - over which the Group has control.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the
date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date such
