Impact of new accounting standards

Audited by PwC

In 2009, the following standards and interpretations with relevance for Novozymes were brought into effect and implemented:

  • "Improvements to IFRSs 2008"
  • Amendment to IFRS 2 "Share-based Payment – Vesting Conditions and Cancellations"
  • Revised IFRS 3 "Business Combinations"
  • Amendment to IFRS 7 "Financial Instruments: Disclosures"
  • Revised IAS 1 "Presentation of Financial Statements"
  • Revised IAS 23 "Borrowing Costs"
  • Revised IAS 27 "Consolidated and Separate Financial Statements"
  • Amendment to IAS 32 "Classification of Rights Issues"
  • IFRIC 13 and 16–18
  • Amendments to IFRIC 9 and IAS 39 "Embedded Derivatives"

The implementation of these has led to further specifications in the Notes, but no changes in recognition and measurement except that borrowing costs relating to qualifying assets DKK 7 million must be capitalized from 2009 pursuant to IAS 23, but comparative figures need not be restated. The Statement of comprehensive income is new and includes items previously shown in the Statement of shareholders’ equity. In addition, IFRS 3 now requires that acquisition costs are expensed and makes it possible to use the full goodwill method. 

Standards and interpretations issued by IASB but not adopted by the EU and therefore not implemented as at December 31, 2009, comprise:

  • "Improvements to IFRSs 2009," etc.
  • Amendments to IFRS 2 "Group Cash-settled Share-based Payment Transactions"
  • IFRS 9 "Financial Instruments"
  • Revised IAS 24 "Related Party Disclosures"
  • Amendments to IFRIC 14 "Prepayment of a Minimum Funding Requirement"
  • IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments"

Implementation of these will lead to further specifications in the Notes but no material changes in recognition and measurement.

My Report