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notes to the financial statements (cont’d)
for the financial year ended 30 June 2014
JAYA TIASA HOLDINGS BERHAD
56
2. Summary of significant accounting policies (CONT’D)
2.2 Changes in accounting policies (cont’d)
The adoption of the above amended FRS did not have any material impact on the accounting policies, financial
performance and position of the Group, except as discussed below:
FRS 10, Consolidated Financial Statements
FRS 10 replaces part of FRS 127, Consolidated and Separate Financial Statements that deals with consolidated
financial statements and IC Interpretation 112 Consolidation - Special Purpose Entities.
Under FRS 10, an investor controls an investee when (a) the investor has power over an investee, (b) the
investor has exposure, or rights, to variable returns from its involvement with the investee, and (c) the investor
has ability to use its power over the investee to affect the amount of the investor’s returns. Under FRS 127
Consolidated and Separate Financial Statements, control was defined as the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities.
FRS 10 includes detailed guidance to explain when an investor has control over the investee. FRS 10 requires
the investor to take into account all relevant facts and circumstances.
The application of this new standard is expected to have no impact on the financial statements of the Group.
FRS 11, Joint Arrangements
FRS 11 replaces FRS 131 Interests in Joint Ventures and IC Interpretation 113 Jointly-Controlled Entities -
Non-monetary Contributions by Venturers.
The classification of joint arrangements under FRS 11 is determined based on the rights and obligations of
the parties to the joint arrangements by considering the structure, the legal form, the contractual terms agreed
by the parties to the arrangement and when relevant, other facts and circumstances. Under FRS 11, joint
arrangements are classified as either joint operations or joint ventures.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of
the arrangement.
FRS 11 removes the option to account for jointly controlled entities (“JCE”) using proportionate consolidation.
Instead, JCE that meet the definition of a joint venture must be accounted for using the equity method.
The adoption of this standard is expected to have no impact on the financial statements of the Group.
FRS 12, Disclosures of Interests in Other Entities
FRS 12 includes all disclosure requirements for interests in subsidiaries, joint arrangements, associates and
structured entities. A number of new disclosures are required. This standard affects disclosures only and has
no impact on the Group’s financial position or performance.
FRS 13, Fair Value Measurement
FRS 13 establishes a single source of guidance under FRS for all fair value measurements. FRS 13 does
not change when an entity is required to use fair value, but rather provides guidance on how to measure fair
value under FRS when fair value is required or permitted. As a result of the guidance in FRS 13, the Group
re-assessed its policies for measuring fair values, in particular, its valuation inputs such as non-performance
risk for fair value measurement of liabilities. FRS 13 also required additional disclosures.
Application of FRS 13 has not materially impacted the fair value measurement of the Group. Additional
disclosures were required, are provided in the individual notes relating to the assets and liabilities whose fair
values were determined.