These basic principles could be reflected in several key points of the both accounting standards whose differences are clarified in this study. Furthermore, an essential key point of CFS namely the basis of consolidation contains enterprises included in the consolidation and capital consolidation methods is illuminated with a concrete example. Thereby, variations of both accounting standards are compared and a major difference is explained explicitly with a concrete example.
It is to point out that despite generally identical conception rules, small variations could be occurred. Khanh Pham-Gia Author. Add to cart. IFRS 3R excludes from its but to the existence of an impersonal entity, scope business combinations involving entities which disposes of all operationally needed under common control, a formation of a joint characteristics to be able to operate venture and the acquisition of an asset or a independently in economic transactions.
A business generally consists of inputs, the processes applied to those inputs and the resulting outputs that are or will be used for generating revenues. If an entity is obliged to prepare consolidated financial statements for the first time or in case it previously excluded certain subsidiaries from its group financial statements in accordance with sec.
Shares issued as their fair value at the acquisition date. The consideration are recorded at fair value at the published price of a share at the acquisition date of exchange, according to GAS 4. The date is the best evidence of fair value in an published price of a share at the date of active market. Alternatively, the nominal value plus capital surplus determined in the course of the resolution to increase the share capital may be recorded as costs for the acquisition of the shares in the subsidiary.
An obligation to pay contingent the cost at the date of the acquisition if it is consideration shall be classified as a liability or probable that the amount be paid and it can be as equity. Financial liabilities are remeasured to fair value Changes in the value or probability of the at each reporting date. Any resulting gain or contingent consideration reflect adjustments to loss is recognised in the income statement. They have to be recorded Equity-classified contingent consideration is not retrospectively against goodwill, even if the remeasured at each reporting date.
Settlement 12 months adjustment window for initial is accounted for within equity. These arrangements are generally recognised as compensation expenses in the post-combination period. However, consideration of the facts and circumstances and specific indicators provided in IFRS is necessary to determine whether the form of the contingent consideration should be recognised as compensation expenses or as part of the consideration transferred.
IFRS German GAAP revised Transaction costs Transaction costs are expensed in the periods Certain costs which are directly attributable to in which the costs are incurred, with one the acquisition form part of the acquisition exception. The costs to issue debt or equity costs. However, only those costs which have securities shall be recognised in accordance been incurred after the decision to acquire an with other IFRSs.
All expenses incurred prior to the decision making have to be expensed as incurred. These An exemption concerning valuation applies to assets and liabilities are measured at their the recognition of provisions and deferred acquisition-date fair values. These items have to be recognised An exception to the recognition and according to their specific valuation standard. Furthermore an exception to the measurement principle applies to reacquired rights, share-based payments and assets held for sale.
These items are accounted for in accordance with the requirements of particular standards or other rules in IFRS 3R. Acquired assets and liabilities — IFRS German GAAP revised restructuring provisions The acquirer may recognise restructuring Provisions for restructuring may only be provisions as part of the acquired liabilities only recorded if they fulfil the general criteria for the if the acquiree has at the acquisition date an recording of provisions at the date of existing liability for restructuring recognised in acquisition, i.
Liabilities for future losses or other no provision may be recorded. Acquired in-process research generally used to Acquired in-process research and development be subsumed within goodwill. The contingent liability is measured subsequently at the higher of the amount initially recognised or, if qualifying for recognition as a provision, the best estimate of the amount required to settle under the provisions guidance with the difference being recognised in the income statement.
Contingent assets are not recognised. Indemnification assets are recognised as assets of the acquirer at the same time and on the same basis as indemnified items are recognised as liabilities of the acquiree. Subsequent control over the subsidiary a purchase price adjustments are recorded in the income allocation cannot be conclusively calculated, statement unless they are to correct an error. The adjustments have to be recorded without an effect on income. Goodwill is recognised as an intangible asset with a finite useful life.
Bargain purchases IFRS German GAAP revised A bargain purchase is a business combination Negative goodwill has to be disclosed as a in which the amount of b above net assets separate item subsequent to equity in the acquired exceeds the aggregate amounts of balance sheet. Reasons for negative goodwill a above aggregate of consideration have to be disclosed in the notes to the transferred, amount of non-controlling interest financial statements.
The Negative goodwill is reduced in case an acquirer reassesses the identification and unfavourable development in view of the future measurement of the assets acquired and profit situation of the acquired entity, which has liabilities assumed and the measurement the been anticipated at acquisition, has taken place consideration transferred, the non-controlling or charges initially expected are realised. Badwill is also eliminated if it is determined, at Any excess remaining after reassessment is the balance sheet date, that it reflects an actual recognised in profit or loss on the acquisition gain.
GAS 4 provides illustrative rules for the treatment of badwill. GAS 4 states there is an indication that goodwill may be that goodwill should be allocated to the impaired. A CGU is the is then determined under consideration of the smallest identifiable group of assets that business unit to which it has been allocated. Each unit or group economic life of goodwill exceeds five years. However GAS 4 states that goodwill with its carrying amount. The impairment exceeds its fair value. A loss resulting from loss is allocated first to goodwill and then on a goodwill impairment cannot be reversed.
Impairment loss recognised for goodwill shall not be reversed in a subsequent period. All the acquisition method at the acquisition date. The fair value of date. The adjustment to any previously held the previously held interest then forms one of interests of the acquirer is treated without an the components that is used to calculate effect on income. Entities elect and consistently apply either acquisition or predecessor accounting for all such transactions.
Revenue recognition criteria for each of these Where the inflow of cash or cash equivalents is categories include the probability that the deferred, discounting to a present value is economic benefits associated with the required under German GAAP only if the transaction will flow to the entity and that the underlying obligation contains an interest revenue and costs can be measured reliably.
Additional recognition criteria apply within each In principle the application of the percentage of broad category. Where the buyer has a right of return, revenue may be recognised either after such a right has expired or when a provision in the amount of the take-back obligation is set off against the revenues. If a provision is made in this case, it must be possible to measure its amount reliably. Accordingly can be estimated reliably.
Revenue may be revenue may only be recognised if it has been recognised on a straight-line basis if the realised at the balance sheet date. When the outcome of a service transaction In such cases partial revenue may be cannot be measured reliably, revenue may be recognised. If the outcome of the transaction is so uncertain that recovery of costs is not probable, revenue would need to be deferred until a more accurate estimate could be made, while the cost incurred is recognised as expense. Revenue may have to be deferred in instances where a specific act is much more significant than any other acts.
It has not been production of goods. A profit method is utilised wherein revenue is construction contract where a legal obligation of recognised to the extent of costs incurred if payment arises after inspection and those costs are expected to be recovered. The acceptance of the constructed assets does not gross-profit approach is not allowed. German GAAP. Combining and segmenting contracts is required when certain criteria are met. In The general revenue recognition criteria apply.
At the same time, two or more transactions may need to be grouped together when they are linked in such a way that the whole commercial effect cannot be understood without reference to the series of transactions as a whole. At the same time, under certain circumstances, a cost-plus-reasonable- margin approach to estimating fair value would be appropriate under IFRS.
Direct insurance, pension individual plans. All other plans are directly.
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DB plans. Differences of the categories IFRS German GAAP revised For DC plans only the contributions that are It is possible to recognise obligations arising paid for each period for the rendered from indirect pension plans off-balance and to employees services are recognised as ongoing account for the contributions as an expense an expenses. For DB plans a liability is recognised underfunding has to be disclosed in the notes.
Actuarial assumptions are required to recognised in the balance sheet and expense measure the obligation and the expense from for the accrual of the liability in profit or loss. DB plans so that actuarial gains or losses may arise. Moreover, the obligation is measured on a discounted basis.
Long-term employee benefits The prevailing view is that jubilee benefits do are accounted for in the same way as DB plans not fall into this category. A small accounting with the exception that actuarial gains and difference arises accordingly. IFRS German GAAP revised Use of realistic parameters Actuarial valuation techniques are used to The regulation to use realistic parameters for make a reliable estimate of the amount of the calculation of pension and similar benefits that employees have earned in return obligations is comparable to IFRS.
Whereas for their services. Based on the pension under the former HGB, the valuation of pension promise these techniques have to include liabilities using an interest rate of 6. Every month the to market yields at the end of the reporting German Federal Bank publishes a yield curve period on high quality corporate bonds. The based on the average market yields for the past currency and term shall be consistent with the seven years. This discount rate is to be used currency and estimated term of the DBO. The discount rate shall basically be chosen to be term-consistent with the obligation, but in order to simplify the calculation, it is acceptable to assume a duration of 15 years if no material over- or underestimation of the obligations results by doing so.
Valuation units IFRS German GAAP revised Where plan assets include qualifying insurance If benefits payable under a plan are determined policies that exactly match the amount and solely by reference to the fair value of the timing of some or all of the benefits payable underlying assets, the value of these benefits under the plan, the fair value of those assets is shall be equal to the fair value of the assets. Through the transition from book value to fair value for assets now recognisable as plan assets, presumably unrecognised gains will be shown in the balance sheet.
As these gains are still unrecognised they are not available for dividend distribution. The deviations arising from experience adjustments volatility of the discount rates is not as high as and changes in actuarial assumptions. All effects shall be recognised actuarial gains and losses: immediately in profit or loss. Such an asset is to tested for whether it can be recognised as an be recognised as a separate line item. IFRS German GAAP revised Net pension expense The pension expense includes all components The pension expense includes all components of the defined benefit obligation and the plan of the defined benefit liability and the plan assets.
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The expected return on plan assets assets. In contrast to IFRS the actual return on reduces the pension expense. Possible deficits arising from indirect pension only schemes have to be shown in the notes. Either way the increase has to be recognised as an extraordinary expense via profit or loss. If the new liability is lower the entity can either maintain the amount if future accruals will reverse the transitional decrease, or choose to recognise the decrease immediately outside of profit or loss.taylor.evolt.org/wumap-nonaspe-dating-app.php
(PDF) Ifrs vs german gaap similarities and differences final | Alex Gomez - yguhuzyz.ga
They have to be reported at fair value. Note that there is a dividend distribution constraint for revenues from fair valuation which have not yet been realised. This means that the difference between the fair value less the associated deferred tax and the acquisition cost is exempt from dividend distribution.
An increase on revaluation is credited directly Not applicable. A decrease on revaluation is charged directly Not applicable. Consistent with the component approach, the Similar to IFRS, when the component approach guidance requires that the carrying amount of is used. BilMoG has eliminated recognition parts or components that are replaced be options of specific provisions for expenses. The costs of a replacement component are recognised as an asset if they meet the recognition criteria.
The following costs are included in the asset. HGB includes a policy choice to include general and administrative costs, expenses for social amenities of the company and the costs of voluntary social benefits and of occupational pensions to the extent that they are attributable to the production process. Continuity in valuation methods has to be observed in successive financial years. Capitalisation of borrowing costs IFRS German GAAP revised Borrowing costs that are directly attributable to Borrowing costs can only be capitalised to the the acquisition, construction or production of a extent that they are used to finance the qualifying asset asset that necessarily takes a production of an asset and if they are directly substantial period of time to get ready for its attributable to the production period.
Determining the amount of borrowing costs that are directly attributable to an otherwise qualifying asset may require professional judgement. Internally generated intangible IFRS German GAAP revised assets Intangible assets that are developed or generated internally must satisfy the criteria for recognition probability that future economic benefits will flow to the entity and that the cost of the asset can be reliably measured.
Difficulties usually arise in distinguishing expected future economic benefits attributable to the internally generated intangible assets from those attributable to the business as a whole. Generally, the difficulties associated with identifying internally generated intangible assets and with satisfying the recognition and measurement criteria mean that such assets are either indistinguishable from the rest of the business or cannot be reliably measured.
Costs in the intangible assets. Costs in be capitalised if they meet the general definition the development phase are capitalised if all of criteria of an individually utilisable asset. Under German items similar in substance cannot be GAAP capitalisation is strictly prohibited for distinguished from the cost of developing the internally generated brands, mastheads, business as a whole. Therefore, such items are publishing titles, customer lists and comparable not recognised as intangible assets. BilMoG is effective from 1 January An earlier application of the revised regulations from 1 January is allowed, provided that all revised regulations are adopted.
There are transitional provisions for internally generated intangible assets, which provide that these are only to be recognised where development starts after 31 December Recognition may however be acceptable where an insignificant part of the development took place before 1 January Where an earlier application from 1 January is chosen, all internally generated intangible assets may be recognised from that date on.
Development costs are costs that are incurred in the application of research findings or other knowledge in the redevelopment of goods and processes or in the advancement of existing goods and processes by means of material modifications. Research on the other hand is the independent and systematic search for new scientific or technical knowledge or general experience whose technical usability and commercial prospects generally cannot be determined.
Research costs have to be expensed as incurred; costs arising during development may be capitalised. When internally generated intangible assets are recognised, all correlative development costs have to be capitalised. Capitalisation is not permitted for any costs if a reliable distinction cannot be made between research and development costs. Subsequently intangible assets are accounted Subsequently intangible assets are accounted for using the cost model or the revaluation for at amortised cost. Revaluations are only model provided fair value can be determined permitted if the decline in value and the with reference to an active market.
Intangible assets may have finite or indefinite In the rare circumstance that there are useful lives. FIFO or weighted average method is value. As for production cost, direct material, used to determine cost. LIFO is prohibited. Choices for other costs apply.
Constant values can be used under certain conditions. Such property is for capital appreciation including property being accounted for as property, plant and constructed or developed for future use as equipment: investment property. When fair value is applied, the gain or loss arising from a change in the fair value is recognised in the income statement and the carrying amount is not depreciated. Where fair value is not reliably measurable for an investment property under construction or development, the property may be measured at cost until completion of the construction or the date when fair value becomes reliably measurable, whichever is earlier.
Irrespective of indication, an strict than under the IFRS principles. According annual impairment test is also required for to this principle, fixed assets must be written intangible assets with indefinite useful lives and down to the lower of cost or market value if it is not yet ready for use as well as for goodwill. IFRS uses a one-step impairment test. The If the decrease in value is temporary, carrying amount of an asset is compared with impairment is optional. This does not apply to the recoverable amount, which is the higher of: financial assets. Prior to BilMoG, the use of this option was In practice, individual assets do not usually restricted to companies that are not meet the definition of a CGU.
As a result assets corporations, partnerships where no individual are rarely tested for impairment individually but person is liable for partnership debts and large are tested within a group of assets. Fair value less costs to sell represents the According to BilMoG, the use of this option is amount obtainable from the sale of an asset or applicable to all legal forms. Value in use represents the future cash flows For current assets, impairment is measured by discounted to present value by using a pre-tax, reference to the reacquisition cost or market market-determined rate that reflects the current price at the balance sheet date or, if such assessment of the time value of money and the values are not available and the costs of risks specific to the asset for which the cash acquisition or production exceed the market flow estimates have not been adjusted.
Leases are classified as an governed by certain decrees of the Federal operating lease or a finance lease. Ministry of Finance. IFRS requires the amount due from a lessee Under German GAAP, the receivable to be under a finance lease to be recognised as a recognised consists only of those rentals that receivable at the amount of the net investment the lessee is required to pay to the lessor plus in the lease total of the future minimum lease any guaranteed and unguaranteed residual payments less gross earnings allocated to value.
Lease payments are to be allocated to principle The gross earnings are allocated between and interest payments. Initial direct costs should be amortised over the lease term. Rental income straight-line basis over the lease term. When attributed to the lessee, finance leases The asset is depreciated over its useful life or are recorded as an asset and an obligation for the lease term if shorter. The interest rate future rentals and depreciated over the useful implicit in the lease is normally used to life of the asset.
Rental payments are calculate the present value of the MLPs. Operating lease the implicit rate is reasonable determinable. Rental expense is recognised operating lease must generally be recognised on a straight-line basis over the lease term if on a straight-line basis over the lease term. IFRS German GAAP revised Finance leaseback Any profit or loss on sale is deferred and A loss must be recognised immediately; a profit amortised over the term of the leaseback must be deferred and amortised over the agreement. The amount received has to be turned into a liability and amortised over the contractual lease term.
Similar to IFRS. In such cases, the difference is deferred over the period over which the asset is expected to be used. IFRS German GAAP revised Operating leaseback — sale at a Excess of the sales price over the fair value of Excess of the sale price over the fair value is price higher than fair value the asset sold is deferred over the period for deemed to be a borrowing and must therefore which the asset is expected to be used. A firm commitment is based derivative for which the entity is or may be on a contract.
Distinction loss incl. A financial asset is classified as held for trading if it is: — acquired or incurred principally for the purpose of selling or repurchasing it in the near term; — part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or — a derivative except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.
An interest acquired in a pool of assets that are not loans or receivables for example, an interest in a mutual fund or a similar fund is not a loan or receivable. The plus, in the case of a financial asset that is not initial recognition of financial assets is at cost recognised as at fair value through profit or including incidental acquisition expenses.
For financial assets that are carried decrease in value is other than temporary; if the at amortised cost the calculation of the decrease in value is temporary, impairment is effective interest rate is generally based on optional. It is focused on Before evaluating whether, and to what extent, whether substantially all risks and rewards of derecognition is appropriate, an entity an asset are permanently retained by or determines if the financial asset being transferred to an entity.
For receivables a considered for derecognition meets one of the substantial risk may be the credit risk. Other following three conditions: financial assets may have other risks and rewards e. In such cases an analysis of the risks and rewards of the asset is required. The entity derecognises the asset completely if an entity transfers substantially all risks and rewards of ownership of the asset e. It continues to recognise the asset if it retains substantially all risks and rewards of ownership of the asset. The transaction is accounted for as a collateralised borrowing in this case.
If an entity neither transfers nor retains substantially all the risks and rewards of ownership of the asset, it needs to determine whether it has retained control over the asset. The asset is derecognised if the entity has lost control. If the entity has retained control, it continues to recognise the asset to the extent of its continuing involvement.
Under continuing involvement, the transferred asset continues to be recognised with an associated liability. On derecognition of a financial asset the difference between the amount received sum of the consideration received and any cumulative gain or loss that had been recognised directly in equity and the carrying amount of the asset is recognised in the income statement.
Any new assets or liabilities arising from the transaction are recognised at fair value. A contingent liability can also guarantees and warranties as well as from be a present obligation that is not recognised granting of security for third party liabilities. Contingent liabilities are disclosed unless the probability of outflows is remote.
Generally, the phrase more incurred without any legal or contractual likely than not denotes any chance greater than obligation. Accordingly treatment of individual items may not be necessarily consistent. Provisions estimate of the expenditure required the must be carried at the amount required to settle amount an entity would rationally pay to settle the obligation based on sound business the obligation at the balance sheet date. The judgement in accordance with the prudence entity must discount the anticipated cash flows principle.
Provisions with a residual term over using a pre-tax discount rate or rates that one year are to be discounted using a market reflect s current market assessments of the rate deemed appropriate for the term seven time value of money and those risks specific to year average; provided by German Federal the liability if the effect is material. Prior to BilMoG, discounting was only permitted where the underlying obligation contained an interest component.
Future increases in prices and costs are to be considered in measurement of provisions also introduced by the revision. A company is usually demonstrably committed when there is legal obligation or when the entity has a detailed formal plan for the restructuring. A current provision is unlikely to be justified if there will be a delay before the restructuring begins or if the restructuring will take an unreasonably long time to complete. Liabilities related to offers for voluntary terminations are measured based on the number of employees expected to accept the offer.
Classification IFRS German GAAP revised The issuer of a financial instrument shall Financial instruments are classified as financial classify the instrument, or its component parts, liabilities or equity instruments. A financial liability is classified as held for trading if it is: — acquired or incurred principally for the purpose of selling or repurchasing it in the near term; — part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or — a derivative except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.
IFRS German GAAP revised Initial measurement A financial liability is recognised initially at its Financial liabilities must be measured at the fair value plus, in the case of a financial liability amount for offsetting the liability at maturity that is not recognised as at fair value through even if the contractual interest rate is zero or profit or loss, transaction costs that are directly below the market rate. Any discount at the date attributable to the acquisition or issue of that of issuance is amortised over the contract term liability.
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A discount may be the difference between the repayable amount of a liability and its value on issuance. Liabilities may only be discounted if the underlying obligation contains an interest component. IFRS German GAAP revised Subsequent measurement After initial recognition, an entity shall measure Any discount is amortised over the contract all financial liabilities at amortised cost using term of the liability or recognised immediately the effective interest method, except for as an expense.
IFRS German GAAP revised Derecognition of financial liabilities A financial liability is derecognised when the Derecognition principles under German GAAP obligation specified in the contract is are similar to IFRS, with the exception that discharged, cancelled or expires, or the primary there is no corresponding provision for the responsibility for the liability is legally treatment of substantial modifications in the transferred to another party. A liability is also considered extinguished if there is a substantial modification in the terms of the instrument.
The difference between the carrying amount of a liability or a portion thereof extinguished or transferred and the amount paid for it should be recognised in net profit or loss for the period. Split accounting is applied to feature characterised by a fixed amount of cash convertible debt where appropriate.
However, for a fixed number of shares, IFRS requires the debt component has to be recognised at bifurcation and split accounting between the the amount for offsetting the liability at maturity.
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The liability higher than its value on issuance, the component is recognised at fair value difference may be included in prepaid calculated by discounting the cash flows expenses on the assets side of the balance associated with the liability component — at a sheet and shall be amortised by systematic market rate for nonconvertible debt — and the annual charges that may be allocated over the equity conversion rights are measured as the full term of the liability. Alternatively such a residual amount and recognised in equity with discount may be recognised as an expense no subsequent measurement.
Equity conversion features within liability host instruments that fail the fixed-for-fixed requirement are considered to be embedded derivatives. Such embedded derivatives are bifurcated from the host debt contract and measured at fair value, with changes in fair value recognised in the statement of operations. Any profit or loss difference between cost and par value is to be offset with reserves available for distribution. Incidental expenses of the acquisition are to be expensed in profit or loss for the period.
On the balance with market. Those derivatives which have no value at initial Contracts of derivatives which are not in line recognition are not recognised on the balance with market require upfront payments. An sheet. The initial margin paid for a future is recognised on the balance sheet as other assets. The consideration paid or received for an option option premium is recognised on the balance sheet as other assets or liabilities. Financial statements provide more relevant information if hedge accounting is applied. In a hedge relationship hedge accounting is applied to the hedged item and the hedging instrument.
The risks have to be similar and in opposite directions. No arithmetical calculations are to be performed. As an exception, the foreign currency risk party.
Consolidated financial statements in IAS/IFRS and German GAAP – Major differences explained
A forecast transaction should be highly A forecast transaction should be highly probable to qualify as a hedged item. In principle derivatives do not qualify as hedged Derivatives qualify as hedged items. Held-to-maturity investments cannot be Not applicable in German GAAP, because the designated as hedged items with respect to category held to maturity does not exist. If the hedged item is a non-financial asset or Under German GAAP there is no distinction liability, it may be designated as a hedged item between financial and non-financial assets or with regard to foreign currency risk only or all liabilities as hedged item.
Forwards and futures to purchase or sell goods non-financial items are also considered as financial instruments for hedge accounting. The only exemption is a non-derivative financial Only financial instruments are used as hedging instrument such as foreign currency instruments. There is no further distinction borrowing to be used as a hedging instrument between derivative and non-derivative for hedging the foreign currency risk.
A written option cannot be designated as a A written option can generally not be hedging instrument unless it is combined with a designated as a hedging instrument. The purchased option may be embedded in another instrument. A hedging relationship may not be designated for only a portion of the time period during which a hedging instrument remains outstanding. It is not permissible to designate changes of cash flows for a specified portion of the time period as a hedging instrument and to leave out the rest of the time period. Designation of a component of a derivative as a Similar to IFRS, the following is allowed: hedging instrument is not allowed.
Although the portfolio may, for risk management purposes, include assets and liabilities, the amount designated is an amount of assets or an amount of liabilities. The overall net position cannot be hedged. The entity may hedge a portion of the interest rate risk associated with this designated amount.
IFRS German GAAP revised Hedge effectiveness A hedge qualifies for hedge accounting under Under German GAAP only prospective testing IFRS if changes in fair values or cash flows of of hedge effectiveness is required to establish the hedged item are expected to be highly that the timing and nominal amount of the effective in offsetting changes in the fair value underlying transaction and hedging instrument or cash flows of the hedging instrument are similar in substance.
Therefore, if an entity is required to produce only annual financial statements, IFRS requires that effectiveness is tested only once a year. These and retrospectively. Fair value hedge: similar to IFRS. Hedge of a net investment in a foreign Hedge of a net investment in a foreign operation: A hedging instrument is used to operation: similar to IFRS.
Fair value hedges: Hedging instruments are Fair value hedges, cash flow hedges, hedges measured at fair value. The hedged item is of net investments in foreign operations: The adjusted for changes in its fair value but only valuation unit is regarded as a new valuation due to the risks being hedged. Gains and object. To the extent and for the time period the losses on the hedging instrument and gains opposing changes of the fair values or cash and losses on the hedged item attributable to flows of the hedged item and the hedging the hedged risk are recognised in the income instrument are offsetting effective part the statement.
Gains neither in balance sheet nor in the income and losses on financial instruments used to statement effective part. This is the hedged item and the hedging instrument not permitted for financial assets or liabilities. The disclosures are presented in the notes. It should be applied retrospectively.