Linde Group's Detailed Response to IASB ED/2015/1 on Liabilities

The document is a formal response from the Linde Group, a global gases and engineering company, to the International Accounting Standards Board's (IASB) Exposure Draft ED/2015/1, which proposes amendments to IAS 1 regarding the classification of liabilities. The response, addressed to Mr. Hans Hoogervorst, Chairman of the IASB, provides the Linde Group's perspective on the proposed changes. The Group agrees with the clarifications regarding the classification based on the entity's rights at the end of the reporting period, the link between settlement and outflow of resources, and the proposed transition arrangements. The response is detailed, addressing specific questions raised in the ED and offering the Linde Group's support for the IASB's efforts to improve IFRS and promote high-quality financial reporting. The document also includes contact information for further discussion and is prepared in accordance with IFRS as adopted by the European Union.

Linde AG, Klosterhofstraße 1, 80331 München
Telefon [phone], Telefax 089.35757-1075, E-Mail [e-mail]
Sitz der Gesellschaft: München, Registergericht: München, HRB 169850
Aufsichtsrat: Manfred Schneider (Vorsitzender), Vorstand: Wolfgang Büchele (Vorsitzender),
Thomas Blades, Christian Bruch, Georg Denoke, Bernd Eulitz, Sanjiv Lamba
Mr Hans Hoogervorst
Chairman of the
International Accounting Standards Board
30 Cannon Street
London EX4M 6XH
United Kingdom
Our Ref. Phone Fax E-mail Date
BS/HDF [phone]
[phone]
[phone]
[phone]
[e-mail]
[e-mail]
June 3, 2015
Re: ED/2015/1 – Classification of Liabilities
Dear Hans,
The Linde Group is a world-leading gases and engineering company with approximately 65.000 emplo
working in more than 100 countries worldwide. In the 2014 financial year it achieved sales of EUR 17 billion.
We offer a wide range of compressed and liquefied gases as well as chemicals and we are therefor
importantand reliablepartnerfor a huge varietyof industries.Our engineeringdivisionis successful
throughout the world, with its focus on promising market segments such as olefin plants, natural gas plants a
air separation plants, as well as hydrogen and synthesis gas plants.
The Linde Group is listed in the leading German share index (DAX) and prepares its consolidated fin
statements in accordance with International Financial Reporting Standards as adopted by the European Union
The LindeGroup welcomesvery much to have thepossibility to commenton the IASB’s Exposure Draft
ED/2015/1 “Classificationof Liabilities– Proposedamendmentsto IAS 1”. We appreciatethe efforts
undertakenby the IASB to continuouslyimprovethe IFRS to developa single set of high quality,
understandable, enforceable and globally accepted financial reporting standards.
If you have any questions or remarks, please do not hesitate to contact us. We would be happy to discuss any
our comments with you at your convenience.
Yours sincerely,
Bjoern Schneider Dr. Hans-Dieter Fladung
Head of Group Accounting & Reporting Head of IFRS Competence Centre & External
Reporting

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Appendix I: Answers to the questions raised in the ED
We agree with the clarifications made.
We agree with the clarification made.
We agree with the transition method.
Question 1—Classification based on the entity’s rights at the end of the reporting Period
The IASB proposes clarifying that the classification of liabilities as either current or non-current should be
based on the entity’s rights at the end of the reporting period. To make that clear, the IASB proposes:
(a) replacing ‘discretion’ in paragraph 73 of the Standard with ‘right’ to align it with the requirements of
paragraph 69(d) of the Standard;
(b) making it explicit in paragraphs 69(d) and 73 of the Standard that only rights in place at the reporting
date should affect this classification of a liability; and
(c) deleting ‘unconditional’ from paragraph 69(d) of the Standard so that ‘an unconditional right’ is replaced
by ‘a right’.
Do you agree with the proposed amendments? Why or why not?
Question 2—Linking settlement with the outflow of resources
The IASB proposes making clear the link between the settlement of the liability and the outflow of resources
from the entity by adding ‘by the transfer to the counterparty of cash, equity instruments, other assets or
services’ to paragraph 69 of the Standard.
Do you agree with that proposal? Why or why not?
Question 3—Transition arrangements
The IASB proposes that the proposed amendments should be applied retrospectively.
Do you agree with that proposal? Why or why not?