61
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)
2.3 Amendments/standards issued but not yet effective (cont’d)
Amendments to FRS 10, FRS 12 and FRS 128: Investment Entities - Applying the Consolidation Exception
The amendments clarify that the exemption from presenting consolidated financial statements applies to a parent
entity that is a subsidiary of an investment entity, when the investment entity measures all of its subsidiaries
at fair value. The amendments further clarify that only a subsidiary that is not an investment entity itself and
provides support services to the investment entity is consolidated. In addition, the amendments also provides
that if an entity that is not itself an investment entity has an interest in an associate or joint venture that is an
investment entity, the entity may, when applying the equity method, retain the fair value measurement applied by
that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests
in subsidiaries.
The amendments are to be applied retrospectively and are effective for annual periods beginning on or after
1 January 2016, with early adoption permitted. These amendments will not have any impact on the Group’s
and the Company’s financial statements.
Amendments to FRS 11 Joint Arrangement: Accounting for Acquisitions of Interests in Joint Operations
The amendments to FRS 11 require that a joint operator which acquires an interest in a joint operations which
constitute a business to apply the relevant FRS 3 Business Combinations principles for business combinations
accounting. The amendments also clarify that a previously held interest in a joint operation is not remeasured
on the acquisition of an additional interest in the same joint operation while joint control is retained. In addition,
a scope exclusion has been added to FRS 11 to specify that the amendments do not apply when the parties
sharing joint control, including the reporting entity, are under common control of the same ultimate controlling
party.
These amendments are to be applied prospectively for annual periods beginning on or after 1 January 2016,
with early adoption permitted. The Directors of the Company do not anticipate that the application of these
amendments will have a material impact on the Group’s consolidated financial statements.
Amendments to FRS 101: Disclosure Initiatives
The amendments to FRS 101 include narrow-focus improvements in the following five areas:
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Materiality
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Disaggregation and subtotals
-
Notes structure
-
Disclosure of accounting policies
-
Presentation of items of other comprehensive income arising from equity accounted investments
The directors of the Company do not anticipate that the application of these amendments will have a material
impact on the Group’s and the Company’s financial statements.
Amendments to FRS 127: Equity Method in Separate Financial Statements
The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint
ventures and associate in their separate financial statements. Entities already applying FRS and electing to
change to the equity method in its separate financial statements will have to apply this change retrospectively.
For first-time adopters of FRS electing to use the equity method in its separate financial statements, they will
be required to apply this method from the date of transition to FRS. The amendments are effective for annual
periods beginning on or after 1 January 2016, with early adoption permitted. These amendments will not have
any impact on the Group’s and the Company’s financial statements.
