2. Implementation of new IFRS standards
IFRS 9 Financial Instruments: The new standard replaces IAS 39 and changes the classification and measurement requirements of financial assets, financial liabilities and the rules for hedge accounting. The classification depends on the business model that the financial assets are managed in and the contractual terms of the cash flows of those financial assets. IFRS 9 defined the following three categories: measured at amortized cost, measured at fair value through other comprehensive income, measured at fair value through profit or loss. Basically no financial assets were reclassified to another category. However, as IFRS 9 eliminated the category available for sale, some financial assets, held in this category under IAS 39, were assigned to the category measured at fair value through other comprehensive income. The effects of this change were immaterial. For trade receivables the Group uses the expected loss model and applied the simplified approach, which did not lead to any material effects. As the Group does not have financial liabilities that are designated at fair value through profit or loss, the accounting treatment of financial liabilities was not affected.
IFRS 15 Revenue from Contracts with Customers: The standard replaces IAS 18 and IAS 11 and related interpretations. It establishes a five-step model to account for revenue arising from contracts with customers. The model specifies that revenue should be recognized when an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. Depending on whether certain criteria are met, revenue is recognized as follows: over time or at a point in time. The Group recognizes its revenue from the sales of timber and from the trading business at a point in time and thus no material effects were identified from the adoption of IFRS 15. This standard has been applied with the modified retrospective approach.