53
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont’d)
2.3
Standards issued but not yet effective (cont’d)
Description
Effective for annual period
beginning on or after
Improvements to FRSs (February 2014)
(a) Amendments to FRS 103
Business Combinations
1 July 2014
(b) Amendments to FRS 113
Fair Value Measurement
1 July 2014
Amendments to FRS 27
Equity Method in Separate Financial Statements
1 January 2016
Amendments to FRS 16 and FRS 38
Clarification of Acceptable Methods of Depreciation
and Amortisation
1 January 2016
Improvements to FRSs (November 2014)
(a) Amendments to FRS 107
Financial Instruments: Disclosures
1 January 2016
(b) Amendments to FRS 19
Employee Benefits
1 January 2016
Amendments to FRS 110 and FRS 28
Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture
1 January 2016
Amendments to FRS
1 Disclosure Initiative
1 January 2016
Amendments to FRS 110, FRS 112 and FRS 28
Investment Entities: Applying the
Consolidation Exception
1 January 2016
FRS 115
Revenue from Contracts with Customers
1 January 2017
FRS 109
Financial Instruments
1 January 2018
Except for FRS 115, the directors expect the adoption of the other standards above will have no material impact on the
financial statements in the period of initial application. The nature of the impending changes in accounting policy on adoption
of FRS 115 is described below.
FRS 115
Revenue from Contracts with Customers
FRS 115 was issued in November 2014 and establishes a new five-step model that will apply to revenue arising from contracts
with customers. Under FRS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects
to be entitled in exchange for transferring goods or services to a customer. The principles in FRS 115 provide a more structured
approach to measuring and recognising revenue. The new revenue standard is applicable to all entities and will supersede all
current revenue recognition requirements under FRS. Either a full or modified retrospective application is required for annual
periods beginning on or after 1 January 2017 with early adoption permitted. The Group is currently evaluating the impact of
FRS 115 on the Group’s financial statements and the adoption date.
2.4
Basis of consolidation and business combinations
(a)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at end
of the reporting period. The financial statements of the subsidiaries used in the preparation of the consolidated financial
statements are prepared for the same reporting date
as the Company. Consistent accounting policies are applied to
like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and
continue to be consolidated until the date that such control ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.
