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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
SIX
THREE
ONE
FOUR
TWO
STANDARDS AND INTERPRETATIONS ISSUED THAT ARE NOT YET EFFECTIVE
The following standards and interpretations have not been applied by the Group as the standards and interpretations are not yet effective.
The Group intends to adopt these standards when they become effective.
IFRS 9:
FINANCIAL INSTRUMENTS – RECOGNITION AND MEASUREMENT
IFRS 9 as issued by the IASB in July 2014, replaces IAS 39 and all previous versions of IFRS 9. IFRS 9 brings together the following three aspects
of the accounting for financial instruments:
•
classification and measurement;
•
impairment; and
•
hedge accounting.
IFRS 9 will be effective for the Group from 1 July 2018 and early application is permitted. The Group has not yet quantified the effect of this standard.
IFRS 11:
JOINT ARRANGEMENTS – ACCOUNTING FOR ACQUISITION OF INTERESTS IN JOINT OPERATIONS
The amendments require an entity acquiring an interest in a joint operation to determine whether an asset or business is acquired. In the case
of acquiring a business, all of the principles in IFRS 3
Business Combinations
should be applied. The amendments to IFRS 11 will be effective for
the Group from 1 July 2016.
IFRS 15:
REVENUE FROM CONTRACTS WITH CUSTOMERS
IFRS 15 replaces all existing revenue requirements in IFRS and applies to all revenue arising from contracts with customers. It also provides
a model for the recognition and measurement of disposal of certain non-financial assets. The core principle is that revenue must reflect the
consideration the Group is entitled to in exchange for transferring goods and services to its customers.
The standard requires retrospective application. There are also more disclosure requirements than the current IAS 18 standard with the aim to
enable users of financial statements to understand the nature, timing and uncertainty of revenue and cash flows arising from contracts with
customers. IFRS 15 will be effective for the group from 1 July 2018 and the impact if any, has not yet been determined.
IFRS 16
LEASES
IFRS 16 requires lessees to account for all leases in a similar way to finance leases under IAS 17. At the commencement date of a lease, a lessee
will recognise a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. Lessees
will be required to separately recognise the interest expense on the lease liability and depreciation expense on the right of use of the asset.
These amendments will be effective from 1 July 2019 and key financial metrics would be impacted, but not to a material extent, for the Group.
IAS 1
PRESENTATION OF FINANCIAL STATEMENTS – DISCLOSURE INITIATIVE AMENDMENTS
The amendments clarify:
•
the materiality requirements in IAS 1;
•
that specific line items in the financial statements may be disaggregated;
•
that entities have flexibility as to the order in which they present the notes to financial statements; and
•
that the share of other comprehensive income of associates and joint ventures accounted for using the equity method must be presented
in aggregate as a single line item, and classified between those items that will or will not be subsequently reclassified to profit or loss. These
amendments will be effective from 1 July 2016 and are not expected to have a significant impact on the Group’s disclosure.
IAS 7
STATEMENT OF CASH FLOWS – DISCLOSURE INITIATIVE AMENDMENTS
The amendments to IAS 7 are part of the IASB’s Disclosure Initiative and require an entity to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash
changes. These amendments will be effective from 1 July 2017 and are not expected to have a significant impact on the Group’s disclosure.
IAS 12
INCOME TAXES – RECOGNITION OF DEFERRED TAX ASSETS FOR UNREALISED LOSSES AMENDMENTS
The amendments clarify the accounting for deferred tax assets for unrealised losses on debt instruments measured at fair value. These
amendments will be effective from 1 July 2017 and are not expected to have a significant impact on the Group’s disclosure.