4. New standards and interpretations

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The following new standards, amendments to the existing standards and interpretations have been endorsed by the European Union (the “EU”):
  • IFRS 10 Consolidated Financial Statements (effective for annual periods beginning on or after January 1st 2013; in the EU effective for annual periods beginning on or after January 1st 2014),
  • IFRS 11 Joint Arrangements (effective for annual periods beginning on or after January 1st 2013; in the EU effective for annual periods beginning on or after January 1st 2014),
  • IFRS 12 Disclosure of Interests in Other Entities (effective for annual periods beginning on or after January 1st 2013; in the EU effective for annual periods beginning on or after January 1st 2014),
  • IAS 27 Separate Financial Statements, as amended in 2011 (effective for annual periods beginning on or after January 1st 2013; in the EU effective for annual periods beginning on or after January 1st 2014),
  • IAS 28 Investments in Associates and Joint Ventures, as amended in 2011 (effective for annual periods beginning on or after January 1st 2013; in the EU effective for annual periods beginning on or after January 1st 2014),
  • Amendments to IAS 32 Financial Instruments: Presentation: Offsetting Financial Assets and Financial Liabilities (effective for annual periods beginning on or after January 1st 2014),
  • Amendments to IFRS 10, IFRS 11 and IFRS 12 Transition Guidance (effective for annual periods beginning on or after January 1st 2013; in the EU effective for annual periods beginning on or after January 1st 2014),
  • Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities (effective for annual periods beginning on or after January 1st 2014),
  • Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting, published on June 27th 2013 (effective for annual periods beginning on or after January 1st 2014),
  • Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets, published on May 29th 2013 (effective for annual periods beginning on or after January 1st 2014),

Due to the Group’s obligation to apply new standards, i.e. IFRS 10, IFRS 11, IFRS 12, IAS 27, and IAS 28 as of January 1st 2014, the Group will cease to use the method of proportionate consolidation for the annual periods beginning on or after January 1st 2014 and will account for shares in UAB Minijos Nafta with the equity method.

Starting from January 1st 2014, the investment in UAB Minijos Nafta will be disclosed in the consolidated financial statements under Equity-accounted entities as the Group’s share in net assets of the company, accounting for changes in the assets in the future reporting periods, as well as elimination of the company's intra-Group transactions with other related parties. The Group will no longer disclose the investment as a share in UAB Minijos Nafta's assets, liabilities, revenue and expenses, which were previously aggregated with the corresponding items in the consolidated financial statements. The table below presents separate financial data of UAB Minijos Nafta as at December 31st 2013, as per the Group’s ownership interest.

PLN ’000 Dec 31 2013
Non-current assets 38,222
Current assets 14,728
Liabilities 11,056
Net assets 41,894
   
PLN ’000 for the year ended Dec 31 2013
Revenue 38,805
Net profit 4,730
New standards, amendments to the existing standards and interpretations which have not been adopted by the European Union:
  • Amended IFRS 9 Financial Instruments: Classification and Measurement (the effective date was deferred by the IASB with no planned endorsement date given),
  • IFRIC 21 Levies, published on May 20th 2013 (effective for annual periods beginning on or after January 1st 2014),
  • Amendments introduced as part of the Improvements to IFRSs 2010-2012 cycle, published on December 12th 2013 (effective for annual periods beginning on or after July 1st 2014),
  • Amendments introduced as part of the Improvements to IFRSs 2011-2013 cycle, published on December 12th 2013 (effective for annual periods beginning on or after July 1st 2014),
  • Amendments to IAS 19 Defined Benefit Plans: Employee Contributions (effective for annual periods beginning on or after July 1st 2014),
  • IFRS 14 Regulatory Deferral Accounts, published on January 30th 2014 (effective for annual periods beginning on or after January 1st 2016).

The Group has not opted for early application of any of the standards, interpretations, or amendments which have not yet become effective. The Company’s Management Board is analysing and assessing the effect of the new standards and interpretations on the accounting policies applied by the Group and on the Group’s future financial statements.