Basis of presentation
ING Group applies International Financial Reporting Standards as adopted by the European Union (‘EU’).
IFRS 7 ‘Financial Instruments: Disclosure’ became effective as of 1 January 2007. Also during the year IFRIC 11 ‘Group and treasury share transactions’ became effective. Neither of these recent standards and interpretations has had a material effect on equity nor profit for the period. Recently issued standards and interpretations that became effective after 1 January 2007 are not expected to have a material effect on equity or profit for the period. ING Group has not early adopted any new International Financial Reporting Standard or interpretation.
International Financial Reporting Standards as adopted by the EU provide several options in accounting policies. ING Group’s accounting policies under International Financial Reporting Standards as adopted by the EU and its decision on the options available are set out in the section ‘Principles of valuation and determination of results’ below.
In this document the term ‘IFRS-EU’ is used to refer to International Financial Reporting Standards as adopted by the EU including the decisions ING Group made with regard to the options available under International Financial Reporting Standards as adopted by the EU.
As permitted by IFRS-EU ING Group adopted IAS 32 and IAS 39 and IFRS 4 for the accounting period beginning on 1 January 2005. For the resulting changes in policies made as at 1 January 2005 see section ‘Implementation of IAS 32, IAS 39 and IFRS 4’ at the end of the ‘Accounting policies’ section.
As explained in the section ‘Principles of valuation and determination of results’ and in Note 23 ‘Derivatives and hedge accounting’ ING Group applies fair value hedge accounting for portfolio hedges of interest rate risk (macro hedging) under the EU ‘carve out’ of IFRS-EU.