Philips 2007 Annual Report Download - page 204

Philips Annual Report 2007210
IFRIC Interpretation 11 ‘Group and Treasury Share Transactions
IFRIC 11 requires a share-based payment arrangement in which an
entity receives goods or services as consideration for its own equity
instruments to be accounted for as an equity-settled share-based
payment transaction, regardless of how the equity instruments are
obtained. IFRIC 11 will become mandatory for the Company’s 2008
nancial statements, with retrospective application required. It is
not expected to have any impact on the Company’s consolidated
nancial statements.
IFRIC Interpretation 12 ‘Service Concession Arrangements’
IFRIC 12 becomes effective for annual reports beginning on or after
January 1, 2008. This interpretation provides guidance on certain
recognition and measurement issues that arise in accounting for
public-to-private service concession arrangements. IFRIC 12 is not
expected to have any material impact on the Company’s consolidated
nancial statements.
IFRIC Interpretation 13 ‘Customer Loyalty Programmes’
IFRIC 13 becomes effective for annual reports beginning on or
after July 1, 2008. This interpretation addresses recognition and
measurement of obligation to provide free or discounted goods or
services in the future. The Company expects that application of this
interpretation will not have a material impact on the Company’s
consolidated nancial statements.
IFRIC Interpretation 14 ‘The Limit on a Dened Benet Asset, Minimum
Funding Requirements and their Interaction’
This interpretation becomes effective for annual reports beginning
on or after January 1, 2008. IFRIC 14 addresses (1) when refunds or
reductions in future contributions should be regarded as ‘available’ in
the context of paragraph 58 of IAS 19 Employee Benets ; (2) how a
minimum funding requirement might affect the availability of reductions
in future contributions; and (3) when a minimum funding requirement
might give rise to a liability. The Company has assessed that application
of this interpretation would result in recognition of additional prepaid
assets of EUR 2,504 million and a simultaneous increase in equity
of EUR 1,866 million (net of tax).
128 Group nancial statements 188 IFRS information
Notes to the IFRS nancial statements
240 Company nancial statements