Philips 2008 Annual Report Download - page 215

IFRIC Interpretation 15 ‘Agreements for the Construction of Real Estate’
IFRIC 15 applies to the accounting for revenue and associated
expenses by entities that undertake the construction of real estate
directly or through subcontractors. Agreements in the scope of this
Interpretation are agreements for the construction of real estate. In
addition to the construction of real estate, such agreements may
include the delivery of other goods or services. This Interpretation
will be applicable to the Company on January 1, 2009. The application
of this interpretation will not have a material impact on the Company’s
consolidated financial statements.
IFRIC 16 ‘Hedges of a Net Investment in Foreign Operations’
IFRIC 16 applies to an entity that hedges the foreign currency risk
arising from its net investments in foreign operations and wishes to
qualify for hedge accounting in accordance with IAS 39. It does not
apply to other types of hedge accounting. The main expected change
in practice is to eliminate the possibility of an entity applying hedge
accounting for a hedge of the foreign exchange differences between
the functional currency of a foreign operation and the presentation
currency of the parent’s consolidated financial statements. This
interpretation is applicable to the Company on January 1, 2009.
The current accounting practice of Philips is consistent with this
amendment.
IFRIC 17 ‘Distributions of Non-cash Assets to Owners’
IFRIC 17 clarifies that dividends payable should be recognized when
the dividend is appropriately authorized and is no longer at the
discretion of the entity and should measure the dividend payable at
the fair value of the net assets to be distributed. It also provides that
an entity should recognize the difference between the dividend paid
and the carrying amount of the net assets distributed in the statements
of income. IFRIC 17 is applicable to the Company on January 1, 2010.
The application of this interpretation will not have a material impact
on the Company’s consolidated financial statements.
IFRIC 18 ‘Transfers of Assets from Customers’
IFRIC 18 clarifies the requirements of IFRS for agreements in which
an entity receives from a customer an item of property, plant and
equipment that the entity must then use either to connect the customer
to a network or to provide the customer with ongoing access to
a supply of goods or services (such as a supply of electricity, gas
or water). The interpretation is applicable on January 1, 2010. The
application of this IFRIC will not have a material impact on the
Company’s consolidated financial statements.
Philips Annual Report 2008 215
254
Corporate governance
250
Reconciliation of
non-US GAAP information
262
Ten-year overview
266
Investor information