2. New and Revised Standards and Interpretations

The following standards and interpretations must be applied for the first time in financial year 2009/2010:

• Amendments to IFRS 1: First-time Adoption of International Financial Reporting Standards and IAS 27: Consolidated and Separate Financial Statements

The amendments facilitate measurement of the cost of an investment in a subsidiary, jointly controlled entity or associate in the separate financial statements of the parent. The amendments also deal with initial measurement of cost in the separate financial statements of a parent formed as a result of reorganisation. The amendments have no effect on the Consolidated Financial Statements.

• Amendments to IFRS 2: Share-based Payment

The revised standard clarifies the meaning of vesting conditions and the treatment of non-vesting conditions when accounting for share-based payment. It also clarifies the scope of stipulations regarding cancellations. Application of the revised IFRS 2 has no effect on the presentation of the Group’s financial position or financial performance or on its earnings per share.

• Amendments to IFRS 3: Business Combinations and IAS 27: Consolidated and Separate Financial Statements

The main changes relate to the identification and measurement of consideration transferred by the acquirer in a business combination, the measurement of non-controlling interests and accounting for step acquisitions. Contingent consideration must be recognised at the acquisition date on purchase price allocation. Transaction costs directly attributable to the acquisition are not capitalised as part of the consideration transferred by the acquirer but immediately recognised as expenses. The new standard introduces an option of recognising goodwill in connection with any non-controlling interests. Finally, it changes the accounting treatment of step acquisitions. The acquisition date in a step acquisition is deemed to be the date control is achieved. The amendments have no effect on the Consolidated Financial Statements.

• Amendments to IFRS 7: Financial Instruments: Disclosures and IFRS 4: Insurance Contracts

The amendments to IFRS 7 require additional disclosures on the measurement of fair values of financial instruments and on liquidity risk. The amendments solely require minor additional disclosures in the Notes to the Consolidated Financial Statements.

• IFRS 8: Operating Segments

The new IFRS 8 Operating Segments replaces IAS 14 Segment Reporting. The new standard introduces the management approach to segment reporting. The previous year’s figures for the reportable segments have been restated to reflect operating adjustments. The changes in segment reporting have no effect at Group level on net income after tax or on earnings per share. Further information on the changes in segment reporting is provided in Note 4.

• Amendments to IAS 1: Presentation of Financial Statements

The main changes concern the presentation of the income statement or statement of comprehensive income, the statement of changes in equity and in some cases the balance sheet. All non-owner changes in equity must be presented either in a single statement of comprehensive income or in two statements comprising a conventional income statement and a statement of comprehensive income beginning with profit or loss and displaying components of other comprehensive income. Owner changes in equity must be presented in the statement of changes in equity separately from comprehensive income. If retrospective changes affect the balance sheet, a restated balance sheet must additionally be presented as at the beginning of the earliest comparative period. Demag Cranes AG has elected the single statement option. The modifications are purely technical and have no effect on the presentation of the Group’s financial position or financial performance or on its earnings per share.

• Amendments to IAS 23: Borrowing Costs

Under the revised IAS 23, the capitalisation of borrowing costs as part of the cost of a qualifying asset ceased to be optional. These borrowing costs must now be capitalised. Application of the amendments has had no effect on the Consolidated Financial Statements.

• Amendments to IAS 32: Financial Instruments: Presentation and IAS 1: Presentation of Financial Statements

The revised IAS 32 and IAS 1 require, in contrast with earlier revisions, the presentation of certain puttable financial instruments in equity together with the corresponding disclosures. Application of the amendments has had no effect on the presentation of the Group’s financial position or financial performance or on its earnings per share.

• Amendments to IAS 39: Financial Instruments: Recognition and Measurement

The amendments clarify the circumstances in which a hedged risk or a portion of cash flows qualifies for hedge accounting. Application of the revised standard has not resulted in any change in accounting policy at Demag Cranes AG.

• IFRIC 9: Reassessment of Embedded Derivatives and IAS 39: Financial Instruments: Recognition and Measurement

The amendments clarify the treatment of embedded derivatives when a hybrid financial instrument accounted for at fair value through profit or loss is reclassified. First-time application has had no effect on the presentation of the Group’s financial position or financial performance or on its earnings per share.

• IFRIC 12: Service Concession Agreements

IFRIC 12 relates to service concessions granted to private-sector operators by government or government agencies in order to provide public services. The Interpretation addresses the accounting treatment of rights and obligations under such agreements for private-sector operators. The Interpretation is not relevant to the Demag Cranes Group and has no effect on the Consolidated Financial Statements.

• IFRIC 13: Customer Loyalty Programmes

IFRIC 13 addresses accounting for loyalty award credits granted to customers on buying goods or services. Specifically, it stipulates how the consideration paid by customers is allocated between the goods or services and the loyalty credits and when the portion allocated to the loyalty credits is recognised as revenue. The Interpretation is not relevant to the Demag Cranes Group and has no effect on the Consolidated Financial Statements.

• IFRIC 14 IAS 19: The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

IFRIC 14 explains the circumstances in which economic benefits from a pension plan are considered to be available to the entity. The Interpretation also addresses how the measurement of defined contribution pension plan assets or liabilities is affected by a statutory or contractual minimum funding requirement. It clarifies to what extent such a requirement restricts the availability of economic benefits and whether the requirement triggers recognition of a liability. First-time application has had no effect on the presentation of the Group’s financial position or financial performance or on its earnings per share.

• IFRIC 16: Hedges of a Net Investment in a Foreign Operation

IFRIC 16 addresses specific issues in connection with accounting for hedges of a net investment in a foreign operation. The issues clarified include the nature of the risk to be hedged, the amount to be hedged, which entity in a group can hold the hedging instrument, and the recognition of any foreign exchange gains on disposal of the foreign operation. As the Group has not designated any hedges of this kind, there has been no effect on the presentation of its financial position or financial performance or on its earnings per share.

• Annual Improvements

In May 2008, the IASB issued its first set of annual improvements to various standards with the primary aim of removing inconsistencies and clarifying wording. Transitional provisions apply for the standards affected. The amendments that are effective for annual periods beginning on or after 1 January 2009 have had no effect on the presentation of the Group’s financial position or financial performance or on its earnings per share.