(3.) Adoption of new and amended IFRS

The following standards, interpretations and amendments to existing standards were adopted for the first time in the 2016 financial year, but had no or no material effect on the consolidated financial statements of WILO SE: 

  • Amendment to IFRS 10 “Consolidated Financial Statements”, IFRS 12 “Disclosure of Interests in Other Entities” and IAS 28 “Investments in Associates and Joint Ventures” – Investment Entities: Applying the Consolidation Exception
  • IFRS 11 “Joint Arrangements” – Accounting for Acquisitions of Interests in Joint Operations
  • IAS 1 “Presentation of Financial Statements” – Disclosure Initiative
  • IAS 16 “Property, Plant and Equipment” and IAS 38 “Intangible Assets” – Clarification of Acceptable Methods of Depreciation and Amortisation
  • Amendment to IAS 16 “Property, Plant and Equipment” and IAS 41 “Agriculture” – Bearer Plants
  • Amendment to IAS 27 “Separate Financial Statements” – Equity Method in Separate Financial Statements
  • Various amendments as part of the “Improvements to International Financial Reporting Standards 2012-2014” 

The following standards, amendments to existing standards and interpretations issued by the IASB and the IFRS Interpretations Committee are not yet effective in the 2016 financial year or have not yet been endorsed by the European Union. WILO SE is not planning early adoption of these standards, interpretations or amendments to existing standards or interpretations:

  • IFRS 9 “Financial Instruments” – Classification of Financial Assets and Financial Liabilities and subsequent amendments to IFRS 9 and IFRS 7 – Mandatory Effective Date and Transition Disclosures, Hedge Accounting
  • Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 
  • IFRS 15 “Revenue from Contracts with Customers”
  • Amendments to IAS 7 “Statement of Cash Flows” – Disclosure Initiative
  • Amendments to IAS 12 “Income Taxes” – Recognition of Deferred Tax Assets for Unrealised Losses
  • Amendments to IFRS 2 “Share-based Payment”
  • Amendments to IFRS 4 “Insurance Contracts”
  • Amendments to IAS 40 “Investment Property”
  • IFRIC 22 “Foreign Currency Transactions and Advance Consideration”
  • IFRS 16 “Leases”
  • Various amendments as part of the “Improvements to International Financial Reporting Standards 2014-2016” 

IFRS 15 “Revenue from Contracts with Customers” specifies an extensive framework for determining whether, when and in what amount to recognise revenue. It replaces existing guidelines on the recognition of revenue, including IAS 18 “Revenue”, IAS 11 “Construction Contracts” and IFRIC 13 “Customer Loyalty Programmes”. IFRS 15 is applicable for the first time to financial years beginning on or after 1 January 2018. Early application is permitted, but not intended. No material effect on revenue is expected on the first-time application of IFRS 15 “Revenue from Contracts with Customers”, as the Group neither has nor is currently planning any significant “construction contracts” according to IAS 11 or significant “customer loyalty programmes” according to IFRIC 13. Moreover, an impact analysis has shown that revenue from sales is not expected to have any material impact compared to current practice under IAS 18.

IFRS 9, which was issued in July 2014, replaces the existing guidelines in IAS 39 “Financial Instruments: Recognition and Measurement”. IFRS 9 contains revised guidelines for the classification and measurement of financial instruments, including a new model of expected credit losses for calculating the impairment of financial assets and new general requirements for hedge accounting. It also carries over the guidelines for recognising and derecognising financial instruments from IAS 39. IFRS 9 is applicable for the first time in financial years beginning on or after 1 January 2018. Early application is permitted, but not intended. The new model for recognising credit losses is not expected to result in significantly higher impairment.

The effects of the first-time adoption of IFRS 16 are currently still being investigated. IFRS 16 replaces the existing guidelines on leases, including IAS 17 “Leases”, IFRIC 4 “Determining Whether an Arrangement Contains a Lease”, SIC-15 “Operating Leases – Incentives” and SIC-27 “Evaluating the Substance of Transactions in the Legal Form of a Lease”. Subject to adoption into EU law, the standard is applicable for the first time in the first reporting period of a financial year beginning on or after 1 January 2019. Early application is permissible for entities that already apply IFRS 15 “Revenue from Contracts with Customers” on or before the date of the first-time application of IFRS 16. The Group has begun to evaluate the potential impact of the application of IFRS 16 on its consolidated financial statements. However, the effects cannot be precisely quantified at present.

The first-time adoption of the other standards, interpretations and amendments to existing standards listed above are not expected to have an effect on the consolidated financial statements of WILO SE.

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WILO SE
Corporate Communications
Nortkirchenstraße 100
44263 Dortmund
T +49 231 4102-0
F +49 231 4102-7363

Contact

WILO SE
Corporate Communications
Nortkirchenstraße 100
44263 Dortmund
T +49 231 4102-0
F +49 231 4102-7363