Accounting policies [extract]
Basis of preparation of financial statements [extract]
The Interim Financial Statements have been prepared in accordance with the accounting policies set out in the Annual Financial Statements, except for accounting policy changes made after the date of the Annual Financial Statements. The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements, except where noted below. Where necessary, comparative information has been reclassified or expanded from the previously reported Interim Financial Statements to take into account any presentational changes made in the Annual Financial Statements or in these Interim Financial Statements.
Changes in accounting policies [extract]
In 2007 the Group early adopted IFRS 8 ‘Operating Segments’ and IAS 23 (revised) ‘Borrowing Costs’ which are required to be implemented from 1 January 2009 at the latest. In 2008 the Group has early adopted the revised versions of IFRS 3 ‘Business Combinations’ and IAS 27 ‘Consolidated and Separate Financial Statements’ that were published in early 2008 and which are required to be implemented from 1 January 2010 at the latest. The Group has also adopted IFRIC interpretation 14 which relates to IAS 19 ‘Employee benefits’. The Group is currently assessing the potential impacts of the other new and revised standards that will be effective from 1 January 2009, notably the revisions to IFRS 2 ‘Share-based Payment’.
IFRS 3 (revised): ‘Business combinations’. Amongst other matters, the revised standard requires that directly attributable transaction costs are expensed in the current period, rather than being included in the cost of acquisition as previously. The revised standard also requires that contingent consideration arrangements should be included in acquisition accounting at fair value and expands the disclosure requirements for business combinations. The Group has applied the revised standard prospectively for all business combinations since 1 January 2008 and transaction costs totalling 42 million Swiss francs have been expensed in 2008 that would have been included in the cost of acquisition under the previous accounting policy. Business combinations in 2007 and prior periods have not been restated. Had the new accounting policy been applied in 2007, the Group would have expensed an additional 5 million Swiss francs of transaction costs in the interim period of 2007 (15 million Swiss francs in the full year 2007) and goodwill would have been reduced by these amounts in the respective periods. This change has a negative impact of 0.05 Swiss francs on earnings per share and non-voting equity security (basic and diluted) in 2008, and would have had a negative impact of 0.01 Swiss francs in the interim period of 2007 (0.02 Swiss francs in the full year 2007) if the revised standard had been applied retrospectively.
IAS 27 (revised): ‘Consolidated and separate financial statements’. Amongst other matters, the revised standard requires that changes in ownership interests in subsidiaries are accounted for as equity transactions if they occur after control has already been obtained and if they do not result in a loss of control. Additionally the revised standard renames ‘minority interests’ as ‘non-controlling interests’. The Group has applied the revised standard retrospectively. There were no transactions in 2007 that required restatement.
IFRIC interpretation 14 to IAS 19: ‘Employee benefits’. The interpretation adds to the existing requirements of IAS 19 regarding the interaction between the limits on recognition of assets from defined benefit postemployment plans and any minimum funding requirement of such plans. Some of the Group’s plans do have a minimum funding requirement and the application of this interpretation results in an increase in the assets recorded on the Group’s balance sheet and a corresponding increase in the Group’s equity. The Group has applied the revised standard retrospectively and the impacts on the previously published balance sheet and statement of recognised income and expense are shown in the tables below. The application of the interpretation has no impact on net income and earnings per share.
the interim financial statements have been prepared in accordance with the accountin 597949
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