62 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  The amendments to IAS 19 Employee Benefits were issued in December 2010 and are effective for annual periods beginning on or after 1 January 2013.  The amendments especially relate to: Since the Group does not operate any defined benefit plan, the Group does not expect a material effect on its financial statements resulting from this  amendment.  Improvements to IFRSs – a collection of amendments to International Financial Reporting Standards (annual improvements project)  The IASB has also issued a collection of amendments to various IFRSs (“Improvements to IFRSs”) in May 2012, which are effective for annual periods  beginning on or after 1 January 2013. This includes amendments to various existing IFRSs. Dialog does not expect a material impact on the financial  position nor the financial performance of Dialog. The amended standards have not yet been endorsed by the EU.  In addition, the following interpretation has been issued:  The Group does not intend to make early application of the amended or revised Standards and Interpretation listed above.  The consolidated financial statements include Dialog Semiconductor Plc and its subsidiaries as at 31 December each year:  Principles of consolidation and investments in affiliated companies  Interpretation Title  Effective date  IFRIC 20 $^{1)}$  Stripping Costs in the Production Phase of a Surface Mine  1 January 2013  $^{1)}$ IFRIC 20 is not relevant to the operations of the Group   eliminating an option to defer the recognition of gains and losses, known as the ‘corridor method’, improving comparability and faithfulness of  presentation;  streamlining the presentation of changes in assets and liabilities arising from defined benefit plans, including requiring remeasurements to be  presented in other comprehensive income (OCI), thereby separating those changes from changes that many perceive to be the result of an entity’s  day-to-day operations;  enhancing the disclosure requirements for defined benefit plans, providing better information about the characteristics of defined benefit plans  and the risks that entities are exposed to through participation in those plans. Name  Country of incorporation Participation Dialog Semiconductor GmbH  Germany 100% Dialog Semiconductor B.V.  The Netherlands 100% Dialog Semiconductor (UK) Limited UK 100% Dialog Semiconductor Inc.  USA 100% Dialog Semiconductor KK  Japan 100% Dialog Semiconductor Hong Kong Limited  Hong Kong  100% Dialog Semiconductor (Italy) S.r.l.  Italy 100% Dialog Semiconductor Arastirma Gelistirme ve Ticaret A.S.  Turkey 100% Dialog Semiconductor Trading (Shanghai) Limited China 100% Subsidiaries are fully consolidated from the date of acquisition, being the date on which Dialog obtains control, and continue to be consolidated until  the date such control ceases.  The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.  All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.  IAS 19 Employee Benefits (amended)  2. Summary of significant accounting policies continued