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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
Since the accounting policies and measurement bases used in preparing the Group’s consolidated financial statements
for 2011 and 2010 (IFRSs) are not exactly the same as those used by the Group companies (local standards), the
required adjustments and reclassifications were made on consolidation to unify the policies and methods used and to
make them compliant with the International Financial Reporting Standards adopted by the European Union.
The 2011 consolidated financial statements of the Group and the 2011 financial statements of the Group companies
have not yet been approved by their shareholders at the respective Annual General Meetings; they are expected to be
approved without modification.
The statement of comprehensive income is presented in two statements; one which presents the components of
income (Separate Income Statement) and a second statement which presents the components of comprehensive
income (Statement of Comprehensive Income).
The consolidated separate income statement is presented on the basis of the nature of expenses.
The consolidated cash flow statement is presented using the indirect method.
At the date of authorisation for issue of these consolidated financial statements, the Group had applied all the mandatory
IFRSs and interpretations adopted by the European Union (IFRS-EU) and in force for annual periods beginning on or
after 1 January 2011.
2.2. Changes in accounting policies
a) Standards and interpretations adopted by the European Union applicable in 2011
The accounting principles applied in the preparation of the consolidated financial statements for the year ended 31
December 2011 are the same as those applied to the 2010 consolidated financial statements, except for the following
standards and interpretations, applicable for annual periods beginning on or after 1 January 2011:
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IAS 32 Classification of Rights Issues
This amendment alters the definition of a financial liability in IAS 32. It classifies cer tain rights issues, options or warrants
as equity instruments.This is applicable if the rights are given pro rata to all of the existing owners of the same class of
the equity’s non-derivative equity instruments, in order to acquire a fixed number of the entity’s own equity instruments
for a fixed amount in any currency. Adoption of this amendment did not have any impact on the Group’s financial
position or results.
•
IAS 24 Related Party Transactions
The amendment to IAS 24 is twofold. The amendment clarifies the definition of a related par ty. It also provides for
an exemption to related par ty disclosures for government-related entities. It only requires disclosure about these
transactions if they are individually or collectively significant.The adoption of these revisions did not affect the disclosures
in the Group’s consolidated financial statements.
•
IFRIC 14 PrepaymentsWhen There is a Minimum Funding Requirement
This change is applied in specific situations in which the company is obligated to make minimum annual contributions
to its defined benefit plan and make prepayments in order to meet this obligation.The amendment allows the company
to consider the economic benefits that arise from prepayments as an asset.The Group does not make minimum annual
contributions to defined-benefit plans.Therefore, application of these criteria had no impact on its financial position or
results.