REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
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The consolidated financial statements for 2013 of the Group and the entities that comprise it have not yet been approved by the shareholders at the respective Annual
General Meetings or by the respective shareholders or sole shareholders. Nonetheless, the directors of the Parent Company understand that said financial statements
will be approved without any significant changes. The consolidated financial statements for 2012 were approved by the shareholders at the Annual General Meeting held
on 25 June 2013 and filed at the Mercantile Registry of Madrid.
Since the accounting standards and valuation criteria applied in the preparation of the Group’s consolidated financial statements for 2013 may differ from those used by
some of its member companies, adjustments and reclassifications were used to standardise them and adapt them to the European Union’s IFRS.
2.1.1.
Standards and interpretations effective in this period
In 2013 new accounting standards came into force and were therefore taken into account when preparing the accompanying consolidated financial statements, but
which did not give rise to a change in the Group’s accounting policies:
Standards, amendments and interpretations
Mandatory application for
financial years starting from:
Approved for use in the EU
Amendment to IAS 12 - Income tax - deferred taxes relating to
property (published in December 2010)
On the calculation of deferred taxes relating to real estate
property according to the IAS 40 fair value model
1
January 2013
Amendment to IFRS 7 - Off-setting financial assets and financial
liabilities (published in December 2011)
Introduction of new breakdowns relating to the off-setting
of financial assets and financial liabilities of IAS 32
1
January 2013
Improvement to IFRS 2009 -2011 Cycle (published inMay 2012)
Minor amendments to a series of standards
1
January 2013
Interpretation of IFRIC 20 - Stripping costs in the production
phase of a surface mine (published in October 2011)
This has a very specific scope in the mining sector
1
January 2013
The Group has applied the following standards and interpretations since they came into force on 1 January 2013 and which have led to changes in the Group’s accounting
policy:
IFRS 13 Fair Value Measurement
IFRS 13 – Fair value measurement, is currently the only source of information for calculating the fair value of asset or liability items that are measured in this way in
accordance with the requirements of other standards. Fair value in accordance with IFRS 13 is defined as the measurement date price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction betweenmarket participants, irrespective of whether or not this price is directly observable or estimated using
another measurement technique.
The Group has analysed the extent to which the new fair value definition could affect the measurement of assets and liabilities. The conclusion reached is that IFRS
13
only gives rise to noteworthy modifications in relation to the methods and calculations carried out to date with regard to the valuation and registration of financial
derivatives.
IFRS 11 Joint Arrangements
Effective 1 January 2013, the Group started to apply IFRS 11 Joint Arrangements early, after that standard replaced IAS 31. The essential change brought about is the
elimination of the proportional consolidation option for entities subject to joint control, which shall be accounted for using the equity method.
The application of the most relevant headings of this standard as at 31 December 2012 entails a drop in property, plant and equipment of €11,548 thousand, a drop in
investment property of €1,857 thousand, a drop of €20,187 thousand in working capital, a €7,558 thousand drop in liabilities, a drop in turnover of €7,555 thousand, a
drop in purchasing costs of €5,961 thousand, an €860 thousand drop in personnel costs and €1,094 thousand less in operating costs.
These new standards had the previously described impact on the Group’s consolidated financial statements, since the option that has been applied to consolidate joint
ventures is the proportionate consolidation of its financial statements.
IAS 19 Employee Contributions
The entry into force of the amendment to IAS 19 Employee Contributions has had a significant impact on the Group, as accounting policy applied in the past involved
applying the “band of fluctuation”; therefore, a certain proportion of actuarial gains and losses on defined benefit pension plans was deferred. This amendment is
retroactive in nature, and as a result has also affected the figures reported in 2012 and the opening reserves for that financial year.
The application of the amendment to this standard, effective 1 January 2012, results in lower reserves of €5,169 thousand, higher minority holdings of €249 thousand
and a decline in income in 2012 of €1.569 million.
2.1.2.
Standards and interpretations issued and not in force
The most significant standards and interpretations published by the IASB on the date these consolidated annual accounts were drawn up but had not yet entered into
force either because the date of their entry into force was subsequent to the date of these consolidated annual accounts or because they had not been endorsed by the
European Union, were the following:
