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2003R1725 EN 30.01.2006 006.001 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
B COMMISSION REGULATION (EC) No 1725/2003
of 29 September 2003
adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council
(Text with EEA relevance)
(OJ L 261, 13.10.2003, p. 1)
Amended by:
Official Journal
No page date
M1 Commission Regulation (EC) No 707/2004 of 6 April 2004 L 111 3 17.4.2004
M2 Commission Regulation (EC) No 2086/2004 of 19 November 2004 L 363 1 9.12.2004
M3 Commission Regulation (EC) No 2236/2004 of 29 December 2004 L 392 1 31.12.2004
M6 Commission Regulation (EC) No 211/2005 of 4 February 2005 L 41 1 11.2.2005
M7 Commission Regulation (EC) No 1073/2005 of 7 July 2005 L 175 3 8.7.2005
M8 Commission Regulation (EC) No 1751/2005 of 25 October 2005 L 282 3 26.10.2005
M12 Commission Regulation (EC) No 108/2006 of 11 January 2006 L 24 1 27.1.2006

BCOMMISSION REGULATION (EC) No 1725/2003
of 29 September 2003
adopting certain international accounting standards in accordancewith Regulation (EC) No 1606/2002 of the European Parliament
and of the Council
(Text with EEA relevance)
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community.
Having regard to Regulation (EC) No 1606/2002 of the EuropeanParliament and of the Council of 19 July 2002 on the application ofinternational accounting standards (1), and in particular Article 3(3)thereof,
Whereas:
(1) Regulation (EC) No 1606/2002 requires that for each financialyear starting on or after 1 January 2005, publicly tradedcompanies governed by the law of a Member State shall undercertain conditions prepare their consolidated accounts inconformity with international accounting standards as defined inArticle 2 of that Regulation.
(2) The Commission, having considered the advice provided by theAccounting Technical Committee, has concluded that the interna-tional accounting standards in existence on 14 September 2002meet the criteria for adoption set out in Article 3 of Regulation(EC) No 1606/2002.
(3) The Commission has also considered the current improvementsprojects that propose to amend many existing standards. Interna-tional accounting standards resulting from the finalisation of theseproposals will be considered for adoption once those standardsare final. The existence of these proposed amendments toexisting standards does not impact upon the Commission'sdecision to endorse the existing standards, except in the cases ofIAS 32 Financial instruments: disclosure and presentation,IAS 39 Financial instruments: recognition and measurement anda small number of interpretations related to these standards,SIC 5 Classification of financial instruments Contingentsettlement provisions, SIC 16 Share capital reacquired ownequity instruments (treasury shares) and SIC 17 Equity Costsof an equity transaction.
(4) The existence of high quality standards dealing with financialinstruments, including derivatives, is important to theCommunity capital market. However, in the cases of IAS 32 andIAS 39, amendments currently being considered may be soconsiderable that it is appropriate not to adopt these standards atthis time. As soon as the current improvement project is completeand revised standards issued, the Commission will consider, as amatter of priority, the adoption of the revised standards further toRegulation (EC) No 1606/2002.
(5) Accordingly, all international accounting standards in existenceon 14 September 2002 except IAS 32, IAS 39 and the relatedinterpretations should be adopted.
(6) The measures provided for in this Regulation are in accordancewith the opinion of the Accounting Regulatory Committee.
2003R1725 EN 30.01.2006 006.001 2
(1) OJ L 243, 11.9.2002, p. 1.

BHAS ADOPTED THIS REGULATION,
Article 1
The international accounting standards set out in the Annex are adopted.
Article 2
This Regulation shall enter into force on the third day following itspublication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable inall Member States.
2003R1725 EN 30.01.2006 006.001 3

BANNEX
INTERNATIONAL ACCOUNTING STANDARDS
IAS 1: Presentation of Financial Statements
IAS 2: Inventories
IAS 7: Cash flow statements (revised 1992)
IAS 8: Accounting policies, changes in accounting estimates and errors
IAS 10: Events after the balance sheet date
IAS 11: Construction contracts (revised 1993)
IAS 12: Income taxes (revised 2000)
IAS 14: Segment reporting (revised 1997)
IAS 16: Property, plant and equipment
IAS 17: Leases
IAS 18: Revenue (revised 1993)
IAS 19: Employee benefits (revised 2002)
IAS 20: Accounting for government grants and disclosure of governmentassistance (reformatted 1 994)
IAS 21: The effects of changes in foreign exchange rates
IFRS 3: Business combinations
IFRS 4: Insurance contracts
IAS 23: Borrowing costs (revised 1993)
IAS 24: Related party disclosures
IAS 26: Accounting and reporting by retirement benefit plans (reformatted1994)
IAS 27: Consolidated and separate financial statements
IAS 28: Investments in associates
IAS 29: Financial reporting in hyperinflationary economies (reformatted1994)
IFRS 7: IFRS 7 Financial instruments: Disclosure
IAS 31: Interests in Joint Ventures
IAS 32: Financial instruments: disclosure and presentation
IAS 33: Earnings per share
IAS 34: Interim financial reporting (1998)
IFRS 5: Non-current assets held for sale and discontinued operations
IAS 36: Impairment of assets
IAS 37: Provisions, contingent liabilities and contingent assets (1998)
IAS 38: Intangible assets
IAS 39: Financial Instruments: Recognition and Measurementwith theexception of the provisions on the use of the fair value optionand certain provisions relating to hedge accountingM9 with the addition of the provisions on the use of thefair value option
IAS 40: Investment property
IAS 41: Agriculture (2001)
IFRS 2: Share-based Payment
IFRS 6: International Financial Reporting Standard (IFRS) 6 Explorationfor and evaluation of mineral resources
2003R1725 EN 30.01.2006 006.001 4

BINTERPRETATIONS OF THE STANDING INTERPRETATIONS
COMMITTEE
SIC-7: Introduction of the euro
IFRS 1: First-time adoption of International Financial Reporting Standard
SIC-10: Government assistance No specific relation to operatingactivities
SIC-12: Consolidation Special purpose entities
IFRIC Amendment to SIC 12 Scope of SIC 12; Consolidation Special Purpose Entities
SIC-13: Jointly controlled entities Non-monetary contributions byventurers
SIC-15: Operating leases Incentives
SIC-21: Income taxes Recovery of revalued non-depreciable assets
SIC-25: Income taxes Changes in the tax status of an enterprise or itsshareholders
SIC-27: Evaluating the substance of transactions involving the legal formof a lease
SIC-29: Disclosure Service concession arrangements
SIC-31: Revenue Barter transactions involving advertising services
SIC-32: Intangible assets Web site costs
IFRIC 1: Changes in existing decommissioning, restoration and similarliabilities
IFRIC 2: Members Shares in Cooperative Entities and Similar Instruments
IFRIC 4: IFRIC Interpretation 4 Determining whether an arrangementcontains a lease
IFRIC 5: IFRIC Interpretation 5 Rights to interests arising from decommis-sioning, restoration and environmental funds
IFRIC 6: IFRIC Interpretation 6 Liabilities arising from Participating in aSpecific Market Waste Electrical and Electronic Equipment
Note:Any appendices to those standards and interpretations are not considered aspart of those standards and interpretations and shall therefore not be reproduced.
Reproduction allowed within the European Economic Area. All existingrights reserved outside the EEE, with the exception of the right toreproduce for the purposes of personal use or other fair dealing. Furtherinformation can be obtained from the IASB at www.iasb.org.uk.
INTERNATIONAL ACCOUNTING STANDARD 1
Presentation of Financial Statements
SUMMARY
Paragraphs
Objective 1
Scope 2-6
Purpose of Financial Statements 7
Components of Financial Statements 8-10
Definitions 11-12
Overall considerations 13-41
Fair Presentation and Compliance with IFRSS 13-22
Going Concern 23-24
Accrual Basis of Accounting 25-26
2003R1725 EN 30.01.2006 006.001 5
M8
B
M5

M5
Consistency of Presentation 27-28
Materiality and Aggregation 29-31
Offsetting 32-35
Comparative Information 36-41
Structure and content 42-126
Introduction 42-43
Identification of the Financial Statements 44-48
Reporting Period 49-50
Balance Sheet 51-77
Current/Non-current Distinction 51-56
Current Assets 57-59
Current

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