2 Impact of new or amended IFRS standards and interpretations
Only two of the new or amended IFRS standards and interpretations detailed under Note 1 have an impact on the consolidated semi-annual financial statements of the Allreal Group.
2.1 Fair Value Measurement (IFRS 13)
The new standard replaces the requirements previously incorporated in IAS 40 for determining the fair value of investment real estate. The concept of “highest and best use”, which entails a slightly modified definition of fair value, has been applied since 2013. Examples of cases potentially resulting in higher fair values are underused plots of land, future changes of use, replacement buildings and conversions of rental apartments into condominium properties. The external real estate valuer identified the Escher-Wyss-Areal Zurich and the residential property at Zollikerstrasse 185/187 Zurich as two yield-producing properties which meet the relevant criteria. The first-time application of the “highest and best use” concept led to a positive correction of CHF 19 million (before tax) and is contained in earnings from revaluation of investment real estate in the consolidated semi-annual statements.
2.2 Employee Benefits (IAS 19)
The revised standard has resulted in a large number of changes in the treatment of pension fund assets and pension fund commitments. The main changes relate to the recalculation of pension fund commitments and past-service cost taking account of the apportionment of risk between the employer and the employees. In addition, the corridor method for recognising actuarial gains and losses will cease to be used and a net interest rate is to be introduced in place of interest costs and anticipated returns.
As the corridor method ceased to be applied as of 1 January 2013, actuarial gains and losses will be taken immediately to other earnings in equity (not recognised in income) and recognised immediately in past-service cost.
The first-time application of IAS 19 (revised) was made retrospectively. As a result, pension fund commitments as at 31 December 2012 increased by CHF 4.4 million and deferred taxes by CHF 1.0 million. Accordingly, equity was CHF 3.4 million lower. Application of the net interest method increases personnel expense by CHF 0.6 for the full 2012 financial year and by CHF 0.3 million for the first half of 2012.
The following tables summarise the impact of the adjustments on the prior-year period:
Consolidated statement of comprehensive income
CHF million | 1st half-year 2013 | 1st half-year 2012 adjusted | 1st half-year 2012 published | 2012 adjusted | 2012 published |
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Personnel expense | –30.5 | –26.9 | –26.6 | –58.3 | –57.7 |
Operating expenses | –37.2 | –31.8 | –31.5 | –69.9 | –69.3 |
EBITDA | 89.8 | 103.5 | 103.8 | 164.2 | 164.8 |
Operating profit (EBIT) | 88.4 | 102.5 | 102.8 | 161.7 | 162.3 |
Net profit before tax | 74.0 | 83.5 | 83.8 | 127.6 | 128.2 |
Tax expense | –14.8 | –19.3 | –19.4 | –30.1 | –30.2 |
Net profit | 59.2 | 64.2 | 64.4 | 97.5 | 98.0 |
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Items subsequently restated in |
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Valuation of financial instruments | 35.4 | –2.6 | –2.6 | 9.4 | 9.4 |
Deferred taxes from valuation of | –7.8 | 0.6 | 0.6 | –2.0 | –2.0 |
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Items subsequently restated in |
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Change in staff pension fund | 3.3 | –2.3 | 0.0 | –3.8 | 0.0 |
Deferred taxes from change in staff pension fund | –0.7 | 0.5 | 0.0 | 0.9 | 0.0 |
Other comprehensive income | 30.2 | –3.8 | –2.0 | 4.5 | 7.4 |
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Total comprehensive income | 89.4 | 60.4 | 62.4 | 102.0 | 105.4 |
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Consolidated balance sheet |
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CHF million | 30.06.2013 | 31.12.2012 adjusted | 31.12.2012 published | 31.12.2011 adjusted | 31.12.2011 published |
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Fixed assets |
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Deferred tax assets | 42.8 | 48.9 | 47.9 | 43.0 | 43.0 |
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Liabilities |
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Other long-term liabilities | 44.1 | 76.8 | 72.4 | 77.4 | 77.4 |
Equity | 1 906.1 | 1 907.3 | 1 910.7 | 1 614.3 | 1 614.3 |
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Consolidated statement of changes in shareholders’ equity |
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CHF million | 30.06.2013 | 31.12.2012 adjusted | 31.12.2012 published | 30.06.2012 adjusted | 30.06.2012 published |
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Net profit | 59.2 | 97.5 | 98.0 | 64.2 | 64.4 |
Change in staff pension fund | 2.6 | –2.9 | 0.0 | –1.8 | 0.0 |
Total comprehensive income | 89.4 | 102.0 | 105.4 | 60.4 | 62.4 |
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Other retained earnings | 654.0 | 595.8 | 599.2 | 542.0 | 544.0 |