Application of the following new or revised standards was required 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 when first preparing separate financial statements of the parent. The amendments to IAS 27 deal with initial measurement of cost in the separate financial statements of a parent formed as a result of reorganisation. The amendments have not affected the presentation of the Company’s financial position or financial performance or its earnings per share.
• 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. The amendments have not affected the presentation of the Company’s financial position or financial performance or 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 not affected the presentation of the Company’s financial position or financial performance or its earnings per share.
• 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. Specifically, the standard requires disclosure of fair value determination in a three level hierarchy. The revised standard also requires additional disclosures on liquidity risk. The amendments require minor additional disclosures in the Notes to the Consolidated Financial Statements. In all other respects, they have not affected the presentation of the Company’s financial position or financial performance or its earnings per share.
• IFRS 8: Operating Segments
  The new IFRS 8 Operating Segments replaces IAS 14 Segment Reporting. IFRS 8 introduces the management approach to segment reporting. The previous year’s figures for the reportable segments have been restated to reflect operating adjustments. Further information on the effects of IFRS 8 on segment reporting by Demag Cranes AG is provided in Note 31.
• 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 statement of financial position. 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. Demag Cranes AG has elected the single statement option. Owner changes in equity must be presented in the statement of changes in equity separately from comprehensive income. If changes in accounting policy or the correction of errors result in retrospective changes affecting the statement of financial position, a restated statement of financial position must additionally be presented as at the beginning of the earliest comparative period. The amendments have not affected the presentation of the Company’s financial position or financial performance or 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. The amendments have not materially affected the presentation of the Company’s financial position or financial performance or its earnings per share.
• 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. The amendments have not affected the presentation of the Company’s financial position or financial performance or 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. The amendments have not affected the presentation of the Company’s financial position or financial performance or its earnings per share.
• 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. The amendments have not affected the presentation of the Company’s financial position or financial performance or 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 Demag Cranes AG and consequently has had no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• 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 Demag Cranes AG and consequently has had no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• 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. The Interpretation has had no effect on the presentation of the Company’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 entity’s currency risks to be hedged, the amount to be hedged and the recognition of any foreign exchange gains on disposal of the foreign operation. The Interpretation has had no effect on the presentation of the Company’s 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 aim of removing inconsistencies and clarifying wording. Transitional provisions apply for the standards affected. The amendments, which are effective for annual periods beginning on or after 1 January 2009, have not affected the presentation of the Company’s financial position or financial performance or its earnings per share.

A number of new International Financial Reporting Standards were issued during financial year 2009/2010 and endorsed by the EU. These are effective for future periods and Demag Cranes AG has not elected to adopt them early.

• Amendments to IFRS 1: First-time Adoption of International Financial Reporting Standards and IFRS 7:
  Financial Instruments: Disclosures
  The amendments exempt first-time adopters of IFRS from the comparative disclosures on the determination of fair value and on liquidity risk required by IFRS 7. The amendments are not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• Amendments to IFRS 1: First-time Adoption of International Financial Reporting Standards
  The revised IFRS 1 introduces exemptions for first-time adopters of IFRS in the oil and gas industry. The amendments are not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• Amendments to IFRS 1: First-time Adoption of International Financial Reporting Standards
  The revised IFRS 1 aims to facilitate the first-time adoption of IFRS. The amendments are not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• Amendments to IFRS 2: Share-based Payment
  The amendments clarify accounting by subsidiaries for group cash-settled share-based payment transactions. The amendments are currently expected to have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• Amendments to IAS 24: Related Party Disclosures and IFRS 8: Operating Segments
  The definition of a related party has been revised to simplify the application of IAS 24. The amendments also simplify disclosure requirements for government-related entities. These changes have resulted in amendments to IFRS 8. Demag Cranes AG is currently assessing the effects of the new standard on the presentation of its financial position and financial performance.
• Amendments to IAS 32: Financial Instruments: Presentation
  The amendments to IAS 32 clarify how the rules on classification of rights issues other than in the issuer’s functional currency are applied. The amendments are not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• Amendments to IFRIC 14: Prepayments of a Minimum Funding Requirement
  The Interpretation addresses accounting for prepayments of a minimum funding requirement on a defined benefit plan. It allows such prepayments to be recognised as assets. The Interpretation is not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• IFRIC 15: Agreements for the Construction of Real Estate
  IFRIC 15 addresses the recognition of revenue for real estate sales concluded before construction is complete. The Interpretation is not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• IFRIC 17: Distributions of Non-cash Assets to Owners
  IFRIC 17 clarifies the accounting treatment of distributions of non-cash assets. The Interpretation is not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• IFRIC 18: Transfers of Assets from Customers
  IFRIC 18 clarifies the accounting treatment in instances where an entity receives from a customer an item of property, plant and equipment (or cash to construct such an item) that the entity must then use to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services. Demag Cranes AG expects that first-time application will have no material effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• IFRIC 19: Extinguishing Financial Liabilities with Equity Instruments
  The Interpretation clarifies the accounting treatment in instances where an entity renegotiates a financial liability with a creditor and issues equity instruments to extinguish the financial liability. The Interpretation is not relevant to Demag Cranes AG and will consequently have no effect on the presentation of the Company’s financial position or financial performance or on its earnings per share.
• Annual Improvements
  As part of its annual improvements project, the IASB amended various standards in April 2009 with the aim of removing inconsistencies and clarifying wording. Transitional provisions apply for the standards affected. The amendments are effective for annual periods beginning on or after 1 January 2010. Demag Cranes AG does not expect applying the amendments to have a material effect on the presentation of its financial position, financial performance or on its earnings per share.