Changes in accounting and measurement methods due to new standards and interpretations

The following standards which affected the Group were applied for the first time in fiscal year 2014/15.

Standards and interpretations applied for the first time

        T 030
         
  Standards/interpretations Compulsory application in the EU Adoption by EU Commission Impact
         
IFRS 10 Consolidated Financial Statements 1/1/2014 12/11/2012 no impacts
IFRS 11 Joint Arrangements 1/1/2014 12/11/2012 Elimination of proportional consolidation, i.e. the 50 % inclusion in consolidated financial statement reporting line items in the statement of financial position and the income statement is discontinued and the joint venture is accounted for using the equity method. The joint venture is disclosed under investments measured using the equity method.
IFRS 12 Disclosure of Interests in Other Entities 1/1/2014 12/11/2012 more extensive disclosures of interests in other entities
IFRS 10
IFRS 11
IFRS 12
Amendments: Transitional Provisions 1/1/2014 4/4/2013 no impacts
IAS 27
Separate Financial Statements
(rev. May 2011)
1/1/2014 12/11/2012 no impacts
         
IAS 28 Investments in Associates and
Joint Ventures (rev. May 2011)
1/1/2014 12/11/2012 no impacts
IFRS 10
IFRS 12
IAS 27
Amendments: Investment Entities 1/1/2014 11/20/2013 no impacts
IAS 32 Amendments: Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities 1/1/2014 12/13/2012 no impacts
IAS 36 Amendments: Impairment of Assets: Recoverable Amount Disclosures for Non-Financial Assets 1/1/2014 12/19/2013 no impacts
IAS 39 Amendments: Financial Instruments:
Recognition and Measurement –
Novation of Derivatives and Continuation
of Hedge Accounting
1/1/2014 12/19/2013 no impacts
IFRIC 21 Levies 6/17/2014 6/13/2014 no impacts

The following standards are to be applied to all fiscal years beginning after October 1, 2014. They were not adopted early in the consolidated financial statements.

Standards and interpretations not adopted early

        T 031
         
  Standards/interpretations Compulsory application in the EU Adoption by EU Commission Impact
         
IFRS 9 Financial Instruments – Classification and Measurement 1/1/2018 open Includes rules for classifying and measuring financial instruments depending on the business model as well as the cash flows of the financial instrument. Establishes the accounting requirements relating to impairments of financial assets, in that not only incurred losses (the previous so-called incurred loss model) but also expected losses (the so-called expected loss model) are to be recorded. Defines hedge accounting requirements.
IFRS 15 Revenue from Contracts with Customers 1/1/2018 open Description of when and in what amount revenues should be recorded as well as an explanation of required disclosures in the notes to the financial statements. Determination of revenues based on a five-stage model that must be applied to all contracts with customers.
Various Improvements to IFRS (2010-2012) 2/1/2015 12/17/2014 no significant impacts
Various Improvements to IFRS (2011-2013) 1/1/2015 12/18/2014 no significant impacts
Various Improvements to IFRS (2012-2014) 1/1/2016 open being investigated by Management
IAS 16
IAS 38
Amendments: Clarification of -Acceptable Methods of Depreciation and Amortization 1/1/2016 open being investigated by Management
IAS 19 Amendments: Defined Benefit Plans: Employee Contributions 2/1/2015 12/17/2014 no impacts
IFRS 10
IAS 28
Amendments: Sales or contributions of assets between an investor and its associate/joint venture open open being investigated by Management
IFRS 10
IFRS 12
IAS 28
Amendments: Investment Entities: Applying the Consolidation Exception 1/1/2016 open no impacts
IAS 27 Amendments: Equity method in separate financial statements 1/1/2016 open no impacts
IFRS 11 Amendments: Accounting for Acquisitions of Interests in Joint Operations 1/1/2016 open no impacts
IFRS 14 Regulatory Deferral Accounts 1/1/2016 open no impacts
IAS 1 Amendments: Disclosure Initiative 1/1/2016 open Clarifications on the materiality of the presentation and disclosure of information in IFRS financial statements. Standards on the presentation of subtotals, the structure of the notes to the financial statements and information about accounting methods.
IAS 16
IAS 41
Amendments: Agriculture:
Bearer Plants
1/1/2016 open no impacts

Adjustment pursuant to IAS 8

In May 2011, the IASB published IFRS 11 “Joint Arrangements”, which was adopted into European law by the EU in December 2012. This is to be applied for the first time in fiscal years that start on or after January 1, 2014.

IFRS 11 outlines the accounting treatment for joint arrangements, which are classified as joint operations or joint ventures. In this connection, the previously permissible method for inclusion of joint ventures by means of proportional consolidation is no longer allowed. In accordance with IFRS 11, joint ventures must now be accounted for using the equity method.

As a consequence, Aurubis AG’s previous 50 % inclusion of Schwermetall Halbzeugwerk GmbH & Co. KG in the individual reporting line items within the statement of financial position and the income statement in the consolidated financial statements no longer applies . The joint venture is now included by applying the equity method. Schwermetall Halbzeugwerk GmbH & Co. KG is now recognized in the statement of financial position under “Investments measured using the equity method”. The contribution to earnings (after taxes) of Schwermetall Halbzeugwerk GmbH & Co. KG is shown in the income statement under “Result from investments measured using the equity method”. Aurubis has applied IFRS 11 since October 1, 2014. The amendments are to be retroactively applied as from the beginning of the comparative period.

Furthermore, personnel obligations that represent an accrued liability according to IAS 37, such as Christmas bonuses, outstanding vacation entitlements and success-based remuneration, have been reclassified from current personnel provisions to other financial liabilities in the statement of financial position. Aurubis has applied this amendment retroactively from October 1, 2014 as from the beginning of the comparative reporting period.

The quantitative impacts of the retrospective corrections to the consolidated statement of financial position and the consolidated income statement pursuant to IAS 8 for fiscal year 2013/14 are presented in the following table:

      T 032
       
in € thousand 10/1/2013
before
correction
Corrections
pursuant to
IAS 8
10/1/2013
after
correction
       
Assets      
Intangible assets 84,342 (63) 84,279
Property, plant and equipment 1,319,102 (19,861) 1,299,241
Financial fixed assets 35,992 0 35,992
Investments measured using the equity method 0 44,592 44,592
Fixed assets 1,439,436 24,668 1,464,104
Deferred tax assets 8,751 0 8,751
Non-current receivables and financial assets 19,809 0 19,809
Other non-current assets 775 0 775
Non-current receivables and other assets 20,584 0 20,584
Non-current assets 1,468,771 24,668 1,493,439
Inventories 1,940,195 (44,573) 1,895,622
Trade accounts receivable 395,046 (14,370) 380,676
Income tax receivables 33,268 (324) 32,944
Other current receivables and financial assets 92,093 1,463 93,556
Other current non-financial assets 66,327 (467) 65,860
Current receivables and other assets 586,734 (13,698) 573,036
Cash and cash equivalents 32,765 (32) 32,733
Assets “held-for-sale” 6,782 0 6,782
Current assets 2,566,476 (58,303) 2,508,173
       
Total assets 4,035,247 (33,635) 4,001,612
       
Equity and liabilities      
Subscribed capital 115,089 0 115,089
Additional paid-in capital 343,032 0 343,032
Generated Group earnings 1,482,378 1,137 1,483,515
Accumulated other comprehensive income components 5,846 0 5,846
Equity attributable to shareholders of Aurubis AG 1,946,345 1,137 1,947,482
Non-controlling interests 3,020 0 3,020
Equity 1,949,365 1,137 1,950,502
Deferred tax liabilities 277,136 (3,405) 273,731
Pension provisions 158,990 (1,231) 157,759
Other non-current provisions 62,553 (431) 62,122
Non-current provisions 221,543 (1,662) 219,881
Non-current financial liabilities 428,573 (8,761) 419,812
Other non-current non-financial liabilities 743 0 743
Non-current liabilities 429,316 (8,761) 420,555
Non-current provisions and liabilities 927,995 (13,828) 914,167
Other current provisions 80,908 (39,280) 41,628
Current financial liabilities 83,722 (8,567) 75,155
Trade accounts payable 817,770 (4,123) 813,647
Income tax liabilities 4,938 (726) 4,212
Other current financial liabilities 100,224 33,032 133,256
Other current non-financial liabilities 70,325 (1,280) 69,045
Current liabilities 1,076,979 18,336 1,095,315
Current provisions and liabilities 1,157,887 (20,944) 1,136,943
Total liabilities 2,085,882 (34,772) 2,051,110
       
Total equity and liabilities 4,035,247 (33,635) 4,001,612
       
The corrections pursuant to IAS 8 include reclassifications of accrued liabilities from other current provisions to other current financial liabilities in the amount of € 37,033 thousand as at October 1, 2013.
      T 033
       
in € thousand 9/30/2014
before
correction
Corrections
pursuant to
IAS 8
9/30/2014
after
correction
       
Assets      
Intangible assets 83,363 (35) 83,328
Property, plant and equipment 1,330,667 (23,351) 1,307,316
Financial fixed assets 32,200 0 32,200
Investments measured using the equity method 0 45,445 45,445
Fixed assets 1,446,230 22,059 1,468,289
Deferred tax assets 2,780 0 2,780
Non-current receivables and financial assets 13,216 (10) 13,206
Other non-current assets 1,031 0 1,031
Non-current receivables and other assets 14,247 (10) 14,237
Non-current assets 1,463,257 22,049 1,485,306
Inventories 1,763,497 (46,151) 1,717,346
Trade accounts receivable 425,497 (11,262) 414,235
Income tax receivables 9,339 0 9,339
Other current receivables and financial assets 89,993 2,200 92,193
Other current non-financial assets 37,879 (366) 37,513
Current receivables and other assets 562,708 (9,428) 553,280
Cash and cash equivalents 187,440 (158) 187,282
Current assets 2,513,645 (55,737) 2,457,908
       
Total assets 3,976,902 (33,688) 3,943,214
       
Equity and liabilities      
Subscribed capital 115,089 0 115,089
Additional paid-in capital 343,032 0 343,032
Generated Group earnings 1,423,051 1,137 1,424,188
Accumulated other comprehensive income components (7,529) 0 (7,529)
Equity attributable to shareholders of Aurubis AG 1,873,643 1,137 1,874,780
Non-controlling interests 3,069 0 3,069
Equity 1,876,712 1,137 1,877,849
Deferred tax liabilities 227,433 (3,133) 224,300
Pension provisions 232,183 (1,544) 230,639
Other non-current provisions 61,542 (313) 61,229
Non-current provisions 293,725 (1,857) 291,868
Non-current financial liabilities 315,288 (10,654) 304,634
Other non-current non-financial liabilities 999 0 999
Non-current liabilities 316,287 (10,654) 305,633
Non-current provisions and liabilities 837,445 (15,644) 821,801
Other current provisions 70,646 (38,295) 32,351
Current financial liabilities 165,179 (9,262) 155,917
Trade accounts payable 801,272 (4,424) 796,848
Income tax liabilities 15,399 (672) 14,727
Other current financial liabilities 127,914 33,686 161,600
Other current non-financial liabilities 82,335 (214) 82,121
Current liabilities 1,192,099 19,114 1,211,213
Current provisions and liabilities 1,262,745 (19,181) 1,243,564
Total liabilities 2,100,190 (34,825) 2,065,365
       
Total equity and liabilities 3,976,902 (33,688) 3,943,214
       
The corrections pursuant to IAS 8 include reclassifications of accrued liabilities from other current provisions to other current financial liabilities in the amount of € 35,281 thousand as at September 30, 2014.
      T 034
       
in € thousand 12 months
2013/14
before
correction
Corrections
pursuant to
IAS 8
12 months
2013/14
after
correction
       
Revenues 11,334,578 (93,611) 11,240,967
Changes in inventories of finished goods and work in process (211,869) 577 (211,292)
Own work capitalized 6,389 0 6,389
Other operating income 55,705 (491) 55,214
Cost of materials (10,294,260) 67,843 (10,226,417)
Gross profit 890,543 (25,682) 864,861
Personnel expenses (424,780) 9,635 (415,145)
Depreciation and amortization of intangible assets and property, plant and equipment (130,429) 2,390 (128,039)
Other operating expenses (241,142) 7,234 (233,908)
Operational result (EBIT) 94,192 (6,423) 87,769
Result from investments measured using the equity method 0 4,074 4,074
Interest income 4,949 (13) 4,936
Interest expense (37,504) 1,283 (36,221)
Other financial income 225 0 225
Other financial expenses (3,231) 0 (3,231)
Earnings before taxes (EBT) 58,631 (1,079) 57,552
Income taxes (14,531) 1,079 (13,452)
       
Consolidated net income 44,100 0 44,100
       
Consolidated net income attributable to Aurubis AG shareholders 42,633 0 42,633
Consolidated net income attributable to non-controlling interests 1,467 0 1,467
Basic earnings per share (in €) 0.95 0.00 0.95
Diluted earnings per share (in €) 0.95 0.00 0.95

In the 2014/15 consolidated financial statements, the comparative ­prior-year figures and the opening balance as at October 1, 2013 were adjusted to comply with the provisions of IAS 8.