ELIA GROUP 2011 FINANCIAL REPORT
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sures about the nature and extent of risks associated with financial instruments (applicable to financial years as from 1 January 2011). Amendment to IFRIC 13 Loyalty Programmes (applicable to financial years as from 1 January 2011).
The standards and interpretations listed hereafter are published on the date of approval of these consolidated financial statements but are not yet effective, and the Group did not opt for early adoption 1 : • Amendment to IFRS 7 Financial Instruments: Disclosures on derecognition (applicable to financial years as from 1 July 2011). • Amendment to IFRS 7 Financial Instruments: Disclosures – Amendments enhancing disclosures about offsetting of financial assets and financial liabilities (applicable to financial years as from 1 January 2013). • Amendment to IFRS 1 First time adoption, on fixed dates and hyperinflation (applicable to financial years as from 1 July 2011). • Amendment to IAS 12 Income taxes - Deferred taxes: recovery of underlying assets (applicable to financial years as from 1 January 2012). • Amendment to IAS 1 Presentation of Financial statements – Amendments to revise the way other comprehensive income is presented (applicable to financial years as from 1 July 2012). • Amendment to IAS 19 Employee benefits – amended Standard resulting from Post-Employment Benefits and Termination Benefits projects (applicable to financial years as from 1 January 2013). • IFRS 9 Financial instrument – Classification and measurement (applicable to financial years as from 1 January 2013). • IFRS 10 Consolidated financial statements: defines the principles of control and establishes controls as the basis for consolidation (applicable to financial years as from 1 January 2013). • IFRS 11 Joint operations: reflection of joint arrangements by focusing on the rights and obligations of the arrangement rather than its legal form (applicable to financial years as from 1 January 2013). • IFRS 12 Disclosures of interests in other entities (applicable to financial years as from 1 January 2013). • IFRS 13 Fair value measurement (applicable to financial years as from 1 January 2013). • IAS 27 (revised 2011) Separate financial Statements (applicable to financial years as from 1 January 2013). • IAS 28 (revised 2011) Investments in Associates and Joint Ventures (applicable to financial years as from 1 January 2013).
1 The Group does not expect any major impact on its financial statements in the period of their initial application of the other standards and interpretations listed hereafter, except for IFRS 10 and IFRS 11, for which Elia started the assessment of their impact on its financial statements in 2011.
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3.2. Basis of consolidation 1. SUBSIDIARIES
A subsidiary is an entity that is controlled by the company. Control means that the company has the power to directly or indirectly govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. 2. ASSOCIATED COMPANIES
Associated companies are those companies in which the company has significant influence, but not control, over the financial and operating policies. The consolidated financial statements include the Group’s share of the total recognised profits and losses of associated companies on the basis of the equity method, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of the losses exceeds its interest in an associated company, the Group’s carrying amount is reduced to nil and further losses are not recognised except to the extent that the Group has incurred legal or constructive obligations or has made payments on behalf of an associated company. 3. JOINT VENTURES
‘Joint ventures’ refers to jointly controlled entities, established pursuant to a contractual agreement and subject to the required approval for strategic, financial and operating decisions. Investments in joint ventures are consolidated proportionally: a proportionate part of the assets, equities & liabilities and income and expenditure statements must be in accordance with IFRS as applied by Elia, with similar items in the consolidated figures grouped into the same category. The gain or loss realised via the acquisition will be recognised as a surplus or as gain on bargain purchase. If, following integration, the joint venture takes over a controlled entity (authorised to manage, either directly or indirectly, the financial and operating activities of the subsidiary in question to derive benefit from those activities), the requirements set out in IFRS 3 Business Combinations must be applied. 4. LOSS OF CONTROL
Upon the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of other comprehensive income related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently