iBimEiHHta
Notes to the consolidated financial statements
3 Significant accounting policies (continued)
New accounting policies effective for 2015
New accounting policies not yet effective for 2015
Ahold at a glance I Business review I Governance I Financials I Investors
Contributions from employees to defined benefit plans - Amendments to IAS 19
The objective of the amendments was to simplify the accounting for contributions that are independent of the
number of years of employee service, for example, employee contributions that are calculated according
to a fixed percentage of salary. The simplification was to allow entities the option to recognize employee
contributions as a reduction of service costs in the period in which the related service is rendered, instead of
attributing the employee contributions to periods of service. The amendments have no impact on the Group, as
Ahold has chosen not to avail itself of the practical expedient offered in the amendments.
IFRIC 21 Levies
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 adoption of IFRIC 21 does not
have a significant financial effect on the consolidated financial statements of the Group.
Annual improvements to IFRSs 2010-2012 and to IFRSs 2011-2013
Annual improvements to IFRSs 2010-2012 Cycle and annual improvements to IFRSs 2011-2013 Cycle made
a number of amendments to various IFRSs, which did not have a significant effect on the consolidated
financial statements.
The IASB issued several standards, or revisions to standards, that are not yet effective for 2015, but will
become effective in coming years.
Amendments to IAS 1, "Disclosure Initiative," clarify existing disclosure requirements. Most of the amendments
were made to address interpretations of the original wording in IAS 1Specifically, the amendments allow
preparers more freedom in applying materiality when deciding what must be disclosed, even if a standard
requires specific disclosures. Other disclosure clarifications relate to the presentation order of notes and the
use of subtotals to further disaggregate required disclosures. The amendments to IAS 1 apply prospectively for
annual periods beginning on or after January 1, 2016. The Company does not anticipate that the application
of these amendments to IAS 1 will have a significant effect on the results of future consolidated financial
statements, but they may alter the manner in which certain financial information is presented.
Amendments to IFRS 10, IFRS 12, and IAS 28, "Investment Entities: Applying the Consolidation Exception,"
made narrow-scope clarifications of guidance. Specifically, the amendments clarify whether the exemption
to present consolidated financial statements is available to a parent entity that is a subsidiary of an investment
entity, which subsidiaries of an investment entity should be consolidated instead of being measured at fair
value, and how an entity that is not an investment entity should apply the equity method of accounting for its
investment in an associate or joint venture that is an investment entity. The amendments to IFRS 10, IFRS 12, and
IAS 28 apply prospectively for annual periods beginning on or after January 1, 2016. Because Ahold is not
an investment entity, nor does it have investments in an investment entity, these amendments will not have an
effect on the future consolidated financial statements.
Ahold
Annual Report 2015
IFRS 9, "Financial Instruments," addresses the classification, measurement and recognition of financial assets
and financial liabilities. Based on Ahold's current financial position, the Company anticipates that the
application of IFRS 9 in the future may have an impact on amounts reported in respect of the Company's
financial assets and financial liabilities. However, it is not practicable to provide a reasonable estimate of the
effect of IFRS 9 until a detailed review has been completed. IFRS 9, as amended in July 2014, is effective for
annual periods beginning on or after January 1, 2018.
IFRS 15, "Revenue from Contracts with Customers," establishes a single comprehensive model for entities to use
in accounting for revenue from contracts with customers. IFRS 15 will supersede the current revenue recognition
guidance including IAS 18 "Revenue," IAS 11 "Construction Contracts," and the related Interpretations when
it becomes effective for annual periods beginning on or after January 1, 2018. Under IFRS 15, an entity
recognizes revenue when (or as) a performance obligation is satisfied, i.e., when "control" of the goods or
services underlying the particular performance obligation is transferred to the customer. More prescriptive
guidance has been added in IFRS to deal with specific scenarios. Furthermore, extensive disclosures are
required by IFRS 15. The Company is in the process of evaluating the full impact of IFRS 15, but to date has
not identified issues that would have a significant effect on the future consolidated financial statements.
IFRS 16, "Leases," eliminates the current dual accounting model for lessees, which distinguishes between on-
balance sheet finance leases and off-balance sheet operating leases. Instead, there is a single, on-balance
sheet accounting model that is similar to current finance lease accounting. The Company anticipates that
the application of IFRS 16 will have a significant effect on its reported assets and liabilities, and operating
and financing expenses. However, it is not practicable to provide a reasonable estimate of the effect of
IFRS 16 until a detailed review has been completed. IFRS 16 is effective for annual periods beginning on or
after January 1, 2019.
Amendments to IFRS 11"Accounting for Acquisitions of Interests in Joint Operations," provide guidance on
how to account for the acquisition of a joint operation that constitutes a business as defined in IFRS 3 "Business
Combinations." Specifically, the amendments state that the relevant principles on accounting for business
combinations in IFRS 3 and other standards should be applied. The amendments to IFRS 11 apply
prospectively for annual periods beginning on or after January 1, 2016. Based on Ahold's current financial
position, the Company does not anticipate that the application of these amendments to IFRS 11 will have a
significant effect on the future consolidated financial statements.
Amendments to IAS 12, "Income Taxes," were made to address diversity in practice surrounding the
recognition of deferred tax assets for unrealized losses on debt instruments measured at fair value, as well
as provide additional guidance on how deductible temporary differences should be measured in situations
when tax law limits the offsetting of certain types of losses against specific sources of taxable profits.
The amendments to IAS 12 apply prospectively for annual periods beginning on or after January 1, 2017
The Company is in the process of evaluating the full impact of the amendments.
