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JAYA TIASA HOLDINGS BERHAD
Notes to the Financial Statements (cont’d)
for the financial year ended 30 June 2015
2.
Summary of significant accounting policies (cont’d)
2.3 Amendments/standards issued but not yet effective (cont’d)
Annual Improvements to FRSs 2012–2014 Cycle (cont’d)
(ii)
FRS 7: Financial Instruments - Disclosures
The amendment clarifies that a servicing contract that includes a fee can constitute continuing involvement
in a financial asset. An entity must assess the nature of the fee and arrangement against the guidance
for continuing involvement in FRS 7 in order to assess whether the disclosures are required.
In addition, the amendment also clarifies that the disclosures in respect of offsetting of financial assets
and financial liabilities are not required in the condensed interim financial report.
(iii) FRS 119: Employee Benefits
The amendment clarifies that market depth of high quality corporate bonds is assessed based on the
currency in which the obligation is denominated, rather than the country where the obligation is located.
When there is no deep market for high quality corporate bonds in that currency, government bond rates
must be used.
The amendment must be applied prospectively.
(iv) FRS 134: Interim Financial Reporting
FRS 134 requires entities to disclose information in the notes to the interim financial statements ‘if not
disclosed elsewhere in the interim financial report’.
The amendment states that the required interim disclosures must either be in the interim financial
statements or incorporated by cross-reference between the interim financial statements and wherever
they are included within the greater interim financial report (e.g., in the management commentary or risk
report). The other information within the interim financial report must be available to users on the same
terms as the interim financial statements and at the same time.
Amendments to FRS 116 and FRS 138: Clarification of Acceptable Methods of Depreciation and
Amortisation
The amendments clarify that revenue reflects a pattern of economic benefits that are generated from operating
a business (of which the asset is part) rather than the economic benefits that are consumed through the use
of an asset. As a result, a revenue-based method cannot be used to depreciate property, plant and equipment
and may only be used in very limited circumstances to amortise intangible assets.
The amendments are effective prospectively for annual periods beginning on or after 1 January 2016, with
early adoption permitted. These amendments are not expected to have any impact to the Group as the Group
has not used a revenue-based method to depreciate its non-current assets.
Amendments to FRS 10 and FRS 128: Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
The amendments clarify that:
-
gains and losses resulting from transactions involving assets that do not constitute a business, between
investor and its associate or joint venture are recognised in the entity’s financial statements only to the
extent of unrelated investors’ interests in the associate or joint venture; and
-
gains and losses resulting from transactions involving the sale or contribution to an associate of a joint
venture of assets that constitute a business is recognised in full.
The amendments are to be applied prospectively to the sale or contribution of assets occurring in annual
periods beginning on or after 1 January 2016. Earlier application is permitted.
