60 Dialog Semiconductor Plc | Annual report and accounts 2012  |  Section 4 | Consolidated financial statements and notes Notes to the consolidated financial statements For the year ended 31 December 2012  1. General  Company name and registered office  Basis of presentation  Statement of compliance  2. Summary of significant accounting policies  Changes in accounting policies and disclosures  IFRS 7 Financial Instruments: Disclosures (amended)  Recently issued accounting standards not yet adopted (Standards and Interpretations are endorsed by the EU except as noted otherwise)  IFRS 7 Financial Instruments: Disclosures (amended / IAS 32 Financial Instruments: Presentation (amended)  IFRS 9 Financial Instruments  The consolidated financial statements of Dialog Semiconductor Plc (“Dialog or the Group”) for the year ended 31 December 2012 were authorised for  issue in accordance with a resolution of the Directors on 15 February 2013. Dialog Semiconductor Plc is a company incorporated in the UK, whose  shares are publicly traded. The principal activities of the Group are set out in the segment reporting (note 24).  Dialog Semiconductor Plc  Tower Bridge House St Katharine’s Way  London E1W 1AA  United Kingdom  The consolidated financial statements are prepared on the historical cost basis except that derivative financial instruments are stated at their fair value.  The consolidated financial statements are presented in US dollars (“US$”) and all values are rounded to the nearest thousand (US$000) except when  otherwise stated. The accompanying consolidated financial statements have been prepared on the basis of the recognition and measurement requirements of  International Financial Reporting Standards (IFRS) and its interpretation as adopted by the EU. Based on these standards, management has applied the  accounting policies as provided in note 2.  The accounting policies are consistent with those of the previous financial year except for the changes resulting from the adoption of the following  amended, revised and new Standards and new IFRIC interpretations during the year:  The amendment was issued in October 2010 and is effective for annual periods beginning on or after 1 July 2011. The amendments will allow users of  financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations), including understanding the  possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a  disproportionate amount of transfer transactions are undertaken around the end of a reporting period. The amendment had no impact on the  disclosures of Dialog.  The amended IFRS 7 / IAS 32 were issued in December 2011 and are effective for periods beginning on or after 1 January 2013 in respect of IFRS 7 and  1. January 2014 in respect of IAS 32. The amendment standards comprise additional guidance in respect of offsetting financial assets and financial  liabilities and introduce disclosure requirements to assess the effect or potential effect of offsetting arrangements on a company’s financial position. The  new disclosure requirements also improve transparency in the reporting of how companies mitigate credit risk, including disclosure of related collateral  pledged or received.  The new IFRS 9 was issued in November 2009. The new standard for financial instruments sets out provisions for the classification and measurement of  financial assets. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many  different rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash  flow characteristics of the financial assets.  In October 2010 additions to IFRS 9 Financial instruments were issued. The additions outline the requirements on the accounting for financial liabilities.  The new requirements address the problem of volatility in profit or loss (P&L) arising from an issuer choosing to measure its own debt at fair value (often  referred to as the ‘own credit’ problem). The International Accounting Standards Board (IASB) decided to maintain the existing amortised cost  measurement for most liabilities, limiting change to that required to address the own credit problem. With the new requirements, an entity choosing to  measure a liability at fair value will present the portion of the change in its fair value due to changes in the entity’s own credit risk in the other  comprehensive income (OCI) section of the income statement, rather than within profit or loss..  The new IFRS 9 is effective for periods beginning on or after 1 January 2015 (as amended in December 2011). IFRS 9 has not yet been endorsed by the  EU The impact will be further analysed in the future when the project is complete. 