
Article 1 

1. The Annex to Regulation (EC) No 1126/2008 is amended as follows:
(a) IFRS 2 Share-based payment is amended as set out in the Annex to this Regulation;
(b) IFRS 3 Business combinations is amended as set out in the Annex to this Regulation;
(c) IFRS 8 Operating segments is amended as set out in the Annex to this Regulation;
(d) IAS 16 Property, plant and equipment is amended as set out in the Annex to this Regulation;
(e) IAS 24 Related party disclosures is amended as set out in the Annex to this Regulation;
(f) IAS 38 Intangible assets is amended as set out in the Annex to this Regulation;
(g) IAS 37 Provisions, contingent liabilities and contingent assets and 39 Financial instruments: recognition and measurement are amended in accordance with the amendments to IFRS 3 as set out in the Annex to this Regulation.
2. Any reference to IFRS 9 as laid down in the Annex to this Regulation shall be read as a reference to IAS 39 Financial instruments: recognition and measurement.
Article 2 
Each company shall apply the amendments referred to in Article 1(1), at the latest, as from the commencement date of its first financial year starting on or after 1 February 2015.
Article 3 
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 17 December 2014.
For the Commission
The President
Jean-Claude JUNCKER
ANNEX
Paragraphs 15 and 19 were amended and paragraph 63B was added.

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 15 

((a)) …
((b)) if an employee is granted share options conditional upon the achievement of a performance condition and remaining in the entity's employ until that performance condition is satisfied, and the length of the vesting period varies depending on when that performance condition is satisfied, the entity shall presume that the services to be rendered by the employee as consideration for the share options will be received in the future, over the expected vesting period. …
 19 
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 63B Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraphs 15 and 19. In Appendix A, the definitions of ‘vesting conditions’ and ‘market condition’ were amended and the definitions of ‘performance condition’ and ‘service condition’ were added. An entity shall prospectively apply that amendment to share-based payment transactions for which the grant date is on or after 1 July 2014. Earlier application is permitted. If an entity applies that amendment for an earlier period it shall disclose that fact.

In Appendix A, the definitions of ‘market condition’ and ‘vesting conditions’ are amended and the definitions of ‘performance condition’ and ‘service condition’ are added
 Appendix A 
This appendix is an integral part of the IFRS.


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market condition A performance condition upon which the exercise price, vesting or exercisability of an equity instrument depends that is related to the market price (or value) of the entity's equity instruments (or the equity instruments of another entity in the same group), such as:
((a)) attaining a specified share price or a specified amount of intrinsic value of a share option or
((b)) achieving a specified target that is based on the market price (or value) of the entity's equity instruments (or the equity instruments of another entity in the same group) relative to an index of market prices of equity instruments of other entities.A market condition requires the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit.
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performance condition A vesting condition that requires:
((a)) the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit; and
((b)) specified performance target(s) to be met while the counterparty is rendering the service required in (a).The period of achieving the performance target(s):
((a)) shall not extend beyond the end of the service period; and
((b)) may start before the service period on the condition that the commencement date of the performance target is not substantially before the commencement of the service period.A performance target is defined by reference to:
((a)) the entity's own operations (or activities) or the operations or activities of another entity in the same group (ie a non-market condition); or
((b)) the price (or value) of the entity's equity instruments or the equity instruments of another entity in the same group (including shares and share options) (ie a market condition).A performance target might relate either to the performance of the entity as a whole or to some part of the entity (or part of the group), such as a division or an individual employee.
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service condition A vesting condition that requires the counterparty to complete a specified period of service during which services are provided to the entity. If the counterparty, regardless of the reason, ceases to provide service during the vesting period, it has failed to satisfy the condition. A service condition does not require a performance target to be met.
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vesting conditions A condition that determines whether the entity receives the services that entitle the counterparty to receive cash, other assets or equity instruments of the entity, under a share-based payment arrangement. A vesting condition is either a service condition or a performance condition.

Paragraphs 40 and 58 are amended and paragraph 64I and paragraph 67A and its related heading are added.

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 40 
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 58 

((a)) …
((b)) Other contingent consideration that:

((i)) is within the scope of IFRS 9 shall be measured at fair value at each reporting date and changes in fair value shall be recognised in profit or loss in accordance with IFRS 9.
((ii)) is not within the scope of IFRS 9 shall be measured at fair value at each reporting date and changes in fair value shall be recognised in profit or loss.

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 64I 
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 67A If an entity applies this Standard but does not yet apply IFRS 9, any reference to IFRS 9 should be read as a reference to IAS 39.

Paragraph 5.4.4 is amended and paragraph 8.1.4 is added.
 5.4.4 
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 8.1 
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 8.1.4 Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraph 5.4.4 as a consequential amendment derived from the amendment to IFRS 3. An entity shall apply that amendment prospectively to business combinations to which the amendment to IFRS 3 applies.

Paragraphs 4.2.1 and 5.7.5 are amended and paragraph 7.1.4 is added.
 4.2  4.2.1 

((a)) ...
((e)) contingent consideration of an acquirer in a business combination to which IFRS 3 Business Combinations applies. Such contingent consideration shall subsequently be measured at fair value.

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 5.7.5 
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 7.1 
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 7.1.4 Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraphs 4.2.1 and 5.7.5 as a consequential amendment derived from the amendment to IFRS 3. An entity shall apply that amendment prospectively to business combinations to which the amendment to IFRS 3 applies.

Paragraph 5 is amended and paragraph 99 is added.

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 5 

((a)) …
((d)) employee benefits (see IAS 19 Employee Benefits);
((e)) insurance contracts (see IFRS 4 Insurance Contracts). However, this Standard applies to provisions, contingent liabilities and contingent assets of an insurer, other than those arising from its contractual obligations and rights under insurance contracts within the scope of IFRS 4; and
((f)) contingent consideration of an acquirer in a business combination (see IFRS 3 Business Combinations).

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 99 Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraph 5 as a consequential amendment derived from the amendment to IFRS 3. An entity shall apply that amendment prospectively to business combinations to which the amendment to IFRS 3 applies.

Paragraph 9 is amended and paragraph 108F is added.

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 9 
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A financial asset or financial liability at fair value through profit or loss is a financial asset or financial liability that meets any of the following conditions.


((a)) …
((aa)) It is contingent consideration of an acquirer in a business combination to which IFRS 3 Business Combinations applies.
((b)) …

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 108F Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraph 9 as a consequential amendment derived from the amendment to IFRS 3. An entity shall apply that amendment prospectively to business combinations to which the amendment to IFRS 3 applies.

Paragraphs 22 and 28 are amended and paragraph 36C is added.
 22 

((a)) factors used to identify the entity's reportable segments, including the basis of organisation (for example, whether management has chosen to organise the entity around differences in products and services, geographical areas, regulatory environments, or a combination of factors and whether operating segments have been aggregated);
((aa)) the judgements made by management in applying the aggregation criteria in paragraph 12. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics; and
((b)) types of products and services from which each reportable segment derives its revenues.

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 28 

((a)) ...
((c)) the total of the reportable segments' assets to the entity's assets if the segment assets are reported in accordance with paragraph 23.
((d)) ...

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 36C Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraphs 22 and 28. An entity shall apply those amendments for annual periods beginning on or after 1 July 2014. Earlier application is permitted. If an entity applies those amendments for an earlier period it shall disclose that fact.

Paragraph 35 is amended and paragraphs 80A and 81H are added.

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 35 

((a)) the gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the asset. For example, the gross carrying amount may be restated by reference to observable market data or it may be restated proportionately to the change in the carrying amount. The accumulated depreciation at the date of the revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses; or
((b)) the accumulated depreciation is eliminated against the gross carrying amount of the asset.

The amount of the adjustment of accumulated depreciation forms part of the increase or decrease in carrying amount that is accounted for in accordance with paragraphs 39 and 40.

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 80A Paragraph 35 was amended by Annual Improvements to IFRSs 2010–2012 Cycle. An entity shall apply that amendment to all revaluations recognised in annual periods beginning on or after the date of initial application of that amendment and in the immediately preceding annual period. An entity may also present adjusted comparative information for any earlier periods presented, but it is not required to do so. If an entity presents unadjusted comparative information for any earlier periods, it shall clearly identify the information that has not been adjusted, state that it has been presented on a different basis and explain that basis.

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 81H Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraph 35 and added paragraph 80A. An entity shall apply that amendment for annual periods beginning on or after 1 July 2014. Earlier application is permitted. If an entity applies that amendment for an earlier period it shall disclose that fact.

Paragraph 9 is amended and paragraphs 17A, 18A and 28C are added.
 9 
A related party is a person or entity that is related to the entity that is preparing its financial statements (in this Standard referred to as the ‘reporting entity’).


((a)) …
((b)) An entity is related to a reporting entity if any of the following conditions applies:

((i)) …
((viii)) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

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 17A If an entity obtains key management personnel services from another entity (the ‘management entity’), the entity is not required to apply the requirements in paragraph 17 to the compensation paid or payable by the management entity to the management entity's employees or directors.
 18 …
 18A 
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 28C Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraph 9 and added paragraphs 17A and 18A. An entity shall apply that amendment for annual periods beginning on or after 1 July 2014. Earlier application is permitted. If an entity applies that amendment for an earlier period it shall disclose that fact.

Paragraph 80 is amended and paragraphs 130H–130I are added.

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 80 

((a)) the gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the asset. For example, the gross carrying amount may be restated by reference to observable market data or it may be restated proportionately to the change in the carrying amount. The accumulated amortisation at the date of the revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses; or
((b)) the accumulated amortisation is eliminated against the gross carrying amount of the asset.

The amount of the adjustment of accumulated amortisation forms part of the increase or decrease in the carrying amount that is accounted for in accordance with paragraphs 85 and 86.

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 130H Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013, amended paragraph 80. An entity shall apply that amendment for annual periods beginning on or after 1 July 2014. Earlier application is permitted. If an entity applies that amendment for an earlier period it shall disclose that fact.
 130I An entity shall apply the amendment made by Annual Improvements to IFRSs 2010–2012 Cycle to all revaluations recognised in annual periods beginning on or after the date of initial application of that amendment and in the immediately preceding annual period. An entity may also present adjusted comparative information for any earlier periods presented, but it is not required to do so. If an entity presents unadjusted comparative information for any earlier periods, it shall clearly identify the information that has not been adjusted, state that it has been presented on a different basis and explain that basis.
