57
ANNUAL REPORT 2015
Notes to the Financial Statements (cont’d)
for the financial year ended 30 June 2015
2.
Summary of significant accounting policies (cont’d)
2.2 Changes in accounting policies (cont’d)
Amendments to FRS 10, FRS 12 and FRS 127: Investment Entities
These amendments provide an exception to the consolidation requirement for entities that meet the definition
of an investment entity under FRS 10 Consolidated Financial Statements and must be applied retrospectively,
subject certain transition relief. The exception to consolidation requires investment entities to account for
subsidiaries at fair value through profit or loss. This amendment have no impact on the Group, since none of
the entities in the Group would qualify to be an investment entity under FRS 10.
Amendments to FRS 136: Recoverable Amount Disclosures for Non-Financial Assets
The amendments to FRS 136 remove the requirement to disclose the recoverable amount of a cash-generating
unit (CGU) to which goodwill or other intangible assets with indefinite useful lives has been allocated when
there has been no impairment or reversal of impairment of the related CGU. In addition, the amendments
introduce additional disclosure requirements when the recoverable amount is measured at fair value less costs
of disposal. These new disclosures include the fair value hierarchy, key assumptions and valuation techniques
used which are in line with the disclosure required by FRS 13 Fair Value Measurements.
The application of these amendments has no material impact on the disclosures in the Group’s and the
Company’s financial statements.
Amendments to FRS 139: Novation of Derivatives and Continuation of Hedge Accounting
These amendments provide relief from the requirement to discontinue hedge accounting when a derivative
designated as a hedging instrument is novated under certain circumstances. The amendments also clarify that
any change to the fair value of the derivative designated as a hedging instrument arising from the novation
should be included in the assessment and measure of hedge effectiveness. Retrospective application is
required.
These amendments have no impact on the Group and the Company as the Group and the Company does not
have any derivatives that are subject to novation.
IC Interpretation 21: Levies
IC 21 defines a levy and clarifies that the obligating event which gives rise to the liability is the activity that
triggers the payment of the levy, as identified by legislation. For a levy which is triggered upon reaching a
minimum threshold, IC 21 clarifies that no liability should be recognised before the specified minimum threshold
is reached. Retrospective application is required. The application of IC 21 has no material impact on the
disclosures or on the amounts recognised in the Group’s and the Company’s financial statements.
Annual Improvements to FRSs 2010–2012 Cycle
The Annual Improvements to FRSs 2010-2012 Cycle include a number of amendments to various FRSs,
which are summarised below. The application of these amendments have no impact on the Group’s and the
Company’s financial statements.
(i)
FRS 3: Business Combinations
The amendments to FRS 3 clarifies that contingent consideration classified as liabilities (or assets)
should be measured at fair value through profit or loss at each reporting date, irrespective of whether the
contingent consideration is a financial instrument within the scope of FRS 9 or FRS 139. The amendments
are effective for business combinations for which the acquisition date is on or after 1 July 2014.
