Siemens 2011 Annual Report Download - page 271

153 D. Consolidated Financial Statements 273 E. Additional information
158 D. Consolidated Statements of Changes in Equity
160 D. Notes to Consolidated Financial Statements
266 D. Supervisory Board and Managing Board
154 D. Consolidated Statements of Income
155 D. Consolidated Statements of Comprehensive Income
156 D. Consolidated Statements of Financial Position
157 D. Consolidated Statements of Cash Flow
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costs. Based on the new regulation, non-controlling interests
may be measured at their fair value (full-goodwill-methodolo-
gy) or at the proportional fair value of assets acquired and
liabilities assumed. In business combinations achieved in
stages, any previously held equity interest in the acquiree is
remeasured to its acquisition date fair value. Any changes to
contingent consideration classified as a liability at the acquisi-
tion date are recognized in profit and loss. Acquisition-related
costs are expensed in the period incurred.
Major changes in relation to IAS  () relate to the ac-
counting for transactions which do not result in a change of
control as well as to those leading to a loss of control. If there
is no loss of control, transactions with non-controlling inter-
ests are accounted for as equity transactions not affecting
profit and loss. At the date control is lost, any retained equity
interests are re-measured to fair value. Based on the amended
standard, non-controlling interests may show a deficit bal-
ance since both profits and losses are allocated to the share-
holders based on their equity interests.
In September , the International Accounting Standards
Board (IASB) issued IAS , Presentation of Financial State-
ments: A Revised Presentation (IAS  revised). IAS  revised re-
places IAS , Presentation of Financial Statements (revised in
), as amended in . The revision is aimed at improv-
ing users’ ability to analyze and compare the information giv-
en in financial statements. IAS  revised sets overall require-
ments for the presentation of financial statements, guide-
lines for their structure and minimum requirements for their
content. The new standard is effective for fiscal periods be-
ginning on or after January , . The Company retrospec-
tively applied IAS  revised in fiscal  for all periods pre-
sented.
In fiscal , the Company also adopted IAS , Statements of
Cash Flows (retrospectively) and IAS , Property, Plant and
Equipment in conjunction with the  Improvements to
IFRSs as well as IAS , Borrowing Costs (as revised ).
RECENT ACCOUNTING PRONOUNCEMENTS,
NOT YET ADOPTED
The following pronouncements, issued by the IASB, are not
yet effective and have not yet been adopted by the Company:
In June , the IASB issued IAS , Employee Benefits. The
amended IAS  eliminates the corridor approach and requires
recognition of actuarial gains and losses in line item Other
Comprehensive Income. These changes will have no impact
on the Company because the Company does not apply the
corridor approach and already recognizes changes in actuarial
gains and losses in line item Other Comprehensive Income.
The amended IAS , in addition, replaces the expected return
on assets and interest costs on the defined benefit obligation
with a single net interest component. Past service costs will
be recognized fully in the period of the related plan amend-
ment. The amendments to IAS  also change the require-
ments for termination benefits and include enhanced presen-
tation and disclosure requirements. The standard is effective
for annual periods beginning on or after January , ; early
application is permitted. The Company is currently assessing
the impact of adopting the amended IAS  on the Company ’s
Consolidated Financial Statements and will determine an
adoption date.
In May , the IASB published its improvements to the ac-
counting and disclosure requirements for consolidation, off
balance sheet activities and joint arrangements by issuing
IFRS , Consolidated Financial Statements, IFRS , Joint Ar-
rangements, IFRS , Disclosure of Interests in Other Entities
and consequential amendments to IAS , Separate Financial
Statements (amended ) and IAS , Investments in Asso-
ciates and Joint Ventures (amended ).
IFRS  supersedes the requirements relating to consolidated
financial statements in IAS , Consolidated and Separate
Financial Statements (amended ) and also supersedes
SIC-, Consolidation – Special Purpose Entities. IFRS  super-
sedes IAS , Interests in Joint Ventures (amended ) and
SIC-, Jointly Controlled Entities – Non-Monetary Contribu-
tions by Venturers. IFRS  replaces disclosure requirements
in IAS , Consolidated and Separate Financial Statements
(amended ), IAS , Investments in Associates and IAS
, Interests in Joint Ventures (amended ). IFRS  builds
on existing principles by identifying a comprehensive concept
of control as the determining factor in whether an entity
should be included within the Consolidated Financial State-
ments. The standard provides additional guidance to assist in
the determination of control where this is difficult to assess.
An investor controls an investee when it is exposed, or has
rights, to variable returns from its involvement with the in-
vestee and has the ability to affect those returns through its
power over the investee. Major changes in relation to current
guidance might relate to the assessment of control in situa-
tions when an investor holds less than a majority of voting
rights, however, has the practical ability to direct the relevant
activities of the investee unilaterally by other means.