137 2.1.3 Future adoption of new IFRS accounting standards IFRS 9 Financial Instruments The following standards, amendments to existing standards and interpretations, published prior to January 1, 2014, were not early  adopted by the Group, but will be applied in future years: ■ IFRS 9 Financial Instruments*; ■ IAS 36 Impairment of Assets – Recoverable Amounts Disclosures for Non-Financial Assets; and ■ IAS 39 Novation of Derivatives and Continuation of Hedge Accounting. * Not yet endorsed by the European Union. The IFRS 9 project is to replace IAS 39 with a new standard. The project is divided into the following components: Classification  and Measurement of Financial Instruments, Impairment and Hedge Accounting. The IASB recently has decided tentatively to defer  the mandatory effective date to January 1, 2018. In addition, the IASB decided to reopen IFRS 9 in order to consider interaction with  the insurance project as well as the US FASB’s classification and measurement model for financial instruments. For the Impairment  component, the IASB issued an exposure draft proposing the recognition and measurement of a credit loss allowance or provision  based on expected losses rather than incurred losses. On November 19, 2013, the IASB issued a new version of Hedge Accounting,  which includes the new hedge accounting requirements. Macro hedging is decoupled from the hedge accounting component in order  to avoid impact on the effective date or timing of the completion of the IFRS 9 project. IFRS 9 is expected to have a significant impact  on the Group’s financial statements because it will likely result in a reclassification and remeasurement 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 IFRS 9 are completed and issued. The IASB has issued amendments to IAS 36, “Impairment of Assets” relating to disclosures in respect of fair value less costs of  disposal. The IASB has made changes to three disclosure requirements, including the requirement to add information about the fair  value measurement of impaired assets when the recoverable amount is based on fair value less costs of disposal. The amendments are  effective per January 1, 2014, with earlier application permitted. The amendment affects disclosure only and has therefore no impact  on Aegon’s financial position or performance. IASB made a narrow-scope amendment to IAS 39 to permit the continuation of hedge accounting in certain circumstances in  which the counterparty to a hedging instrument changes in order to achieve clearing for that instrument. The amendment is to be  applied retrospectively with effective date January 1, 2014. Aegon expects that the amendment does not result in any changes to  the classification, measurement or presentation of any items in the financial statements. The following amendments to the existing standard and interpretation, published prior to January 1, 2014, which are not yet effective  for or early adopted by the Group, will not significantly impact the financial position or financial statements: IAS 36 Impairment of Assets – Recoverable Amounts Disclosures for Non-Financial Assets IAS 39 Novation of Derivatives and Continuation of Hedge Accounting ■ IFRIC 21 – Levies*. ■ Annual improvements 2011-2013 Cycle*; and  ■ Annual improvements 2010-2012 Cycle*;  ■ IAS 32 Financial Instruments: Presentation – Amendment Offsetting Financial Assets and Financial Liabilities;  ■ IAS 19 Employee Benefits – Amendment Employee Contributions*; ■ IFRS 14 Regulatory Deferral Accounts*; ■ IFRS 10 Consolidated Financial Statements - Amendment Investment Entities; 2.2 Basis of consolidation a. Subsidiaries Changes in accounting policies * Not yet endorsed by the European Union. Aegon early adopted IFRS 10, “Consolidated Financial Statements” on January 1, 2013. Aegon also early adopted IFRS 11,  ‘’Joint Arrangements”, IFRS 12, ”Disclosure of Interests in Other Entities”, and consequential amendments to IAS 28, ”Investments  in Associates and Joint Ventures” and IAS 27, “Separate Financial Statements”, at the same time. Aegon’s accounting policy for  consolidation, as set out below, reflects the changes under IFRS 10 for the control definition.  Aegon has applied the new policy for consolidated financial statements on or after January 1, 2012. In accordance with the transitional  provisions of IFRS 10, if control in a former subsidiary was lost before January 1, 2013, Aegon has not restated the carrying amount of 