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2 Basis of preparation and significant accounting policies

2.1 Basis of preparation

These unaudited financial statements are the interim condensed consolidated financial statements of Tecan Group Ltd. and its subsidiaries (together referred to as the ‘Group’) for the six-month period ending June 30, 2016. The financial statements are prepared in accordance with International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’ and should be read in conjunction with the consolidated financial statements 2015 as they provide an update of previously reported information. The interim condensed consolidated financial statements were authorized for issue on August 10, 2016.

 

The preparation of these interim condensed consolidated financial statements requires management to make assumptions and estimates that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of these interim financial statements. If in the future such assumptions and estimates deviate from the actual circumstances, the original assumptions and estimates will be modified as appropriate in the period in which the circumstances change.

 

The Group operates in industries where significant seasonal or cyclical variations in total sales are not experienced during the financial year. 

 

Income tax expense is recognized based on the best estimate of the weighted average annual income tax rate expected for the full financial year. 

 

2.2 Introduction of new and revised/amended accounting standards and interpretations

The accounting policies used in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the consolidated financial statements 2015, except for the adoption of the following new or revised/amended standards and interpretations, effective as from January 1, 2016: 

 

Standard/interpretation1

IFRS 11 amended ‘Joint Arrangements’ – Accounting for Acquisitions of Interests in Joint Operations

IAS 1 amended ‘Presentation of Financial Statements’ – Disclosure Initiative

IAS 16 amended ‘Property, Plant and Equipment’ and IAS 38 amended ‘Intangible Assets’ – Clarification of Acceptable Methods of Depreciation and Amortization

IAS 27 amended ‘Separate Financial Statements’ – Equity Method

Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)

Annual improvements to IFRSs 2012 – 2014 Cycle

  1. IAS = International Accounting Standards, IFRS = International Financial Reporting Standards, IFRIC = Interpretations as by the IFRS Interpretations Committee (formerly International Financial Reporting Interpretations Committee)

The adoption of these new or revised/amended standards and interpretations did not result in substantial changes to the Group’s accounting policies.

 

2.3 New standards and interpretations not yet applied

The following new and revised/amended standards and interpretations have been issued, but are not yet effective and are not applied early in these interim condensed consolidated financial statements:

 

Standard/interpretation1

Effective date 
for the Group

IAS 7 amended ‘Statement of Cash Flows’ – Disclosure Initiative

Reporting year 2017

IAS 12 amended ‘Income taxes’ – Recognition of Deferred Tax Assets on Unrealised Losses

Reporting year 2017

IFRS 9 ‘Financial Instruments’

Reporting year 2018

IFRS 15 ‘Revenue from Contracts with Customers’

Reporting year 2018

IFRS 16 ‘Leases’

Reporting year 2019

IFRS 10 amended ‘Consolidated Financial Statements’ and IAS 28 amended ‘Investments in Associates and Joint Ventures’ – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

To be defined

  1. IAS = International Accounting Standards, IFRS = International Financial Reporting Standards, IFRIC = Interpretations as by the IFRS Interpretations Committee (formerly International Financial Reporting Interpretations Committee)

These changes are not expected to have a significant impact on the consolidated financial statements except for IFRS 15 ‘Revenue from Contracts with Customers’ and IFRS 16 ‘Leases’. However, a comprehensive and profound analysis is yet to be performed.

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