## IAS 27 (revised) ‘Consolidated and separate fi nancial statements’ and consequential amendments to IAS 28 ‘Investments in Associates’ and IAS 31 ‘Interests in Joint Ventures’ 

The revised IAS 27, applicable prospectively to all new transactions undertaken with non-controlling interest (minority interest) after January 1, 2010, requires the recording of the effect of all transactions in equity if there is no change in control. Where an interest is disposed and control (or significant influence or joint control) is lost, any remaining interest in the entity is re-measured to fair value and a gain or loss is recognized in profit and loss. In the past, the effect of transactions with non-controlling interests were accounted for as partial acquisitions and disposals and reflected either as goodwill or within the profit and loss account. The adoption of IAS 27 (revised) had no impact during the current period as there were no transactions with non-controlling interests and no disposals where an interest in an entity was retained after the loss of control (or significant influence or joint control) of that entity. 

## Improvements to IFRS (2009) 

The IASB issued, in April 2009, a number of minor amendments to IFRS which resulted from the IASB’s 2009 annual improvements project. These amendments, which were effective either from July 1, 2009 or January 1, 2010, deal with minor changes to the wordings used in the individual standards and seek to remove editorial and other inconsistencies in the literature. AEGON adopted all the relevant changes from the improvements project to its accounting policies. The improvements project did not result in any changes to the classification, measurement or presentation of any items in the financial statements. 

In addition, the following new standards, amendments to existing standards and interpretations are mandatory for the first time for the financial year beginning January 1, 2010 but are not currently relevant for the Group: 

■ Amendments to IAS 39 Financial Instruments – Eligible hedged items. 

■ IFRIC 17 Distributions of non-cash assets to owners. 

■ IFRIC 18 Transfers of assets from customers. 

■ IFRS 1 (revised) First time adoption of IFRS – additional exemptions. 

■ Amendment to IFRS 2 Share Based Payments (Group cash settled and share based payment transactions. 

■ Amendment to IAS 32 Classification of Rights Issues. 

## NOTE 2.1.2 FUTURE ADOPTION OF NEW IFRS ACCOUNTING STANDARDS 

The following standards, amendments to existing standards and interpretations, published prior to January 1, 2011, were not early adopted by the Group and will be applied in future years: 

■ IFRS 9 Financial Instruments$^{ 1}$. 

■ IFRS 7 (amendment) Financial Instruments - Disclosures (adopted October 2010). 

■ Improvements to IFRS (2010). 

## IFRS 9 ‘Financial Instruments’ 

IFRS 9 Financial Instruments addresses classification and measurement of financial assets, is available for early adoption immediately but mandatory only for accounting periods beginning on or after January 1, 2013. IFRS 9 replaces the multiple classification and measurement models in IAS 39 with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 represents the first stage in the IASB’s planned replacement of IAS 39. IFRS 9 is expected to have a significant impact on the Group’s financial statements because it will likely result in a reclassification and re- measurement of AEGON’s financial assets. However the full impact of IFRS 9 will only be clear after the remaining stages of the IASB’s project on IAS 39 are completed and issued. 

## Improvements to IFRS (2010) 

This set of improvements to IFRS issued by the IASB in May 2010 makes a number of minor amendments to 7 different standards and interpretations. These amendments, which are effective for accounting periods beginning on January 1, 2011, 

will all be applied by AEGON in its 2011 financial statements to the extent they are relevant. None of these amendments are expected to have a material change to the classification, measurement or presentation of any items in AEGON’s financial statements. 

In addition to the above, the following standards, amendments to standards and interpretations have been published and are mandatory for accounting periods beginning on or after January 1, 2011 or later periods but are not material for the Group’s operations: 

■ IAS 24 (revised) Related Party Disclosures. 

■ IFRIC 14 (amendment ) Prepayment of a minimum funding requirement. 

■ IFRIC 19 Extinguishing financial liabilities with equity instrument. 

■ IFRS 1 (amendment) First Time Adoption – Limited Exemption from Comparative IFRS 7 Disclosures for First Time Adopters. 

