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notes to the financial statements (cont’d)
for the financial year ended 30 June 2014
JAYA TIASA HOLDINGS BERHAD
58
2. Summary of significant accounting policies (CONT’D)
2.3 Amendments/standards issued but not yet effective (cont’d)
The directors expect that the adoption of the amendments/standards above will have no material impact on
the financial statements of the Group and of the Company in the period of initial application. The nature of the
impending changes in accounting policies on adoption of applicable amendments/standards are described
below:
Annual periods beginning on or after 1 January 2014
•
Amendments to FRS 10, FRS 12 and FRS 127, Investment Entities
These amendments are effective for annual periods beginning on or after 1 January 2014 provide an
exception to the consolidation requirement for entities that meet the definition of an investment entity
under FRS 10. The exception to consolidation requires investment entities to account for subsidiaries at
fair value through profit or loss. It is expected that this amendment would not be relevant to the Group,
since none of the entities in the Group would qualify to be an investment entity under FRS 10.
•
Amendments to FRS 132, Financial Instruments: Presentation - Offsetting Financial Assets and
Financial Liabilities
These amendments clarify the meaning of “currently has a legally enforceable right to set-off” and also
clarify the application of the IAS 32 offsetting criteria to settlement systems (such as central clearing
house systems) which apply gross settlements mechanisms that are not simultaneous. The amendments
to IAS 32 are to be retrospectively applied for annual periods beginning on or after 1 January 2014. The
amendments affect disclosures only and have no impact on the Group’s and the Company’s financial
position or performance.
•
IC Interpretation 21, Levies
The Interpretation clarifies that an entity should recognise a liability to pay a levy when it is within the
scope of FRS 137 Provisions, Contingent Liabilities and Contingent Assets. It also explains that the
obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation
that triggers the payment of the levy. For example, if the activity that triggers the payment of the levy is
the generation of revenue in the current period and the calculation of that levy is based on the revenue
that was generated in the previous period, the obligating event for that levy is the generation of revenue
in the current period. The generation of revenue in the previous period is necessary, but not sufficient,
to create a present obligation.
The Interpretation also clarifies that the liability to pay a levy is recognised progressively if the obligating
event occurs over a period of time. If an obligation to pay a levy is triggered when a minimum threshold
is reached, the liability to pay a levy is recognised when that minimum activity threshold is reached.
The Interpretation is to be applied retrospectively for annual periods beginning on or after 1 January
2014.
The Group and the Company are currently assessing the impact that this standard will have on the
financial position and performance of the Group and the Company.
Annual periods beginning on or after 1 January 2016
•
Amendments to FRS 11, Joint Arrangements Benefits: Accounting for Acquisitions of Interest in
Joint Operations
These amendments clarify that when an entity acquires an interest in a joint operation in which the
activity of the joint operation constitutes a business, as defined in FRS 3 Business Combinations, it shall
apply the relevant principles on business combinations accounting in FRS 3, and other FRSs, that do
not conflict with FRS 11. Some of the impact arising may be the recognition of goodwill, recognition of
deferred tax assets / liabilities and recognition of acquisition-related costs as expenses.
The amendments apply prospectively and are effective for annual periods beginning on or after 1 January
2016.