59
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 119: Defined Benefit Plans: Employee Contributions
The amendments to FRS 119 clarify how an entity should account for contributions made by employees or
third parties to defined benefit plans, based on whether those contributions are dependent on the number of
years of service provided by the employee. For contributions that are independent of the number of years of
service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in
which the service is rendered, instead of allocating the contributions to the periods of service. For contributions
that are dependent on the number of years of service, the entity is required to attribute them to the employees’
periods of service.
These amendments have no impact on the Group, since none of the entities in the Group has defined benefit
plan.
2.3 Amendments/standards issued but not yet effective
The amendments/standards issued but not yet effective up to the date of issuance of the Group’s financial
statements are listed below. The Group and the Company intend to adopt these amendments/standards, if
applicable, when they become effective.
Effective for annual
periods beginning
Description
on or after
Annual Improvements to FRSs 2012 - 2014 Cycle
1 January 2016
Amendments to FRS 116 and FRS 138: Clarification of Acceptable Methods
of Depreciation and Amortisation
1 January 2016
Amendments to FRS 10 and FRS 128: Sale or Contribution of Assets between
an Investor and its Associate or Joint Venture
1 January 2016
Amendments to FRS 10, FRS 12 and FRS 128: Investments Entities - Applying
the Consolidation Exception
1 January 2016
Amendments to FRS 11: Accounting for Acquisitions of Interests in Joint Operations
1 January 2016
Amendments to FRS 101: Disclosure Initiatives
1 January 2016
Amendments to FRS 127: Equity Method in Separate Financial Statements
1 January 2016
FRS 14 Regulatory Deferral Accounts
1 January 2016
FRS 9 Financial Instruments
1 January 2018
The directors expect that the adoption of the above standards and interpretations will have no material impact
on the financial statements in the period of initial application except as discussed below:
Annual Improvements to FRSs 2012–2014 Cycle
The Annual Improvements to FRSs 2012-2014 Cycle include a number of amendments to various FRSs,
which are summarised below. The directors of the Company do not anticipate that the application of these
amendments will have a significant impact on the Group’s and the Company’s financial statements.
(i)
FRS 5: Non-current Assets Held for Sale and Discontinued Operations
The amendment to FRS 5 clarifies that changing from one of these disposal methods to the other should
not be considered to be a new plan of disposal, rather it is a continuation of the original plan. There is
therefore no interruption of the application of the requirements in FRS 5.
The amendment also clarifies that changing the disposal method does not change the date of
classification. This amendment is to be applied prospectively to changes in methods of disposal that
occur in annual periods beginning on or after 1 January 2016, with earlier application permitted.
