Application
of new and revised IFRS
i.
Standards, interpretations and amendments to IFRS
which are effective in the current year:
IFRS 1
'First-time adoption of International Financial Reporting Standards'. Government loans – (amendments) is amended to addresses
how a first-time adopter would account for a government loan with a
below-market rate of interest when transitioning to IFRS. It also adds an
exception to the retrospective application of IFRS, which provides the same
relief to first-time adopters granted to existing preparers of IFRS financial
statements when the requirement was incorporated into IAS 20 in 2008, the
amendment is effective for annual periods on after 1 January 2013.
IFRS 7 'Financial
instruments: Disclosures' on
asset and liability offsetting is amended to include new disclosures to
facilitate comparison between those entities that prepare IFRS financial
statements to those that prepare financial statements in accordance with US
GAAP.
IFRS 10
'Consolidated financial statements'
– replaces the portion of IAS 27 consolidated and separate financial statements
that addresses the accounting for consolidated financial statements, effective
for annual periods beginning on after 1 January 2013.
IFRS 11
'Joint arrangements' – replaces IAS 31 interests in joint ventures and SIC –
13 jointly-controlled entities-nonmonetary contributions by venturers,
effective for annual periods beginning on after 1 January 2013.
IFRS 12
'Disclosure of interests in other entities' – disclosures that were previously in IAS 27 related
to consolidated financial statements, as well as all of the disclosures that
were previously included in IAS 31 and IAS 28, effective for annual periods beginning
on after 1 January 2013.
IFRS 13 'Fair
value measurement' is effective
from 1 January 2013 and requires fair value disclosure for both financial and
non-financial items regardless of whether those items are measured at fair
value on a recurring or non-recurring basis. Further, it requires entities to
take the risk of non-performance into account when calculating the fair value
of liabilities (principally derivatives).
IAS 1
'Presentation of Financial Statements' is amended to clarify that only one comparative period – which is the
preceding period – is required for a complete set of financial statements. If
an entity presents additional comparative information, then that additional
information need not be in the form of a complete set of financial statements.
However, such information should be accompanied by related notes and should be
in accordance with IFRS. Furthermore, it clarifies that the ‘third statement of
financial position’, when required, is only required if the effect of
restatement is material to statement of financial position, effective for
annual periods beginning on after 1 January 2013.
IAS 16 'Property,
Plant and Equipment' is amended
to clarify the accounting of spare parts, stand-by equipment and servicing
equipment. The definition of ‘property, plant and equipment’ in IAS 16 is now
considered in determining whether these items should be accounted for under
that standard. If these items do not meet the definition, then they are accounted
for using IAS 2 Inventories, effective for annual periods beginning on after 1
January 2013.
IAS 19 'Employee
benefits' (revised) the amended
standard requires costs associated with the management of plan assets to be
deducted from the return on plan assets, which is unchanged from the existing
standard. Other administration expenses should be recognised in profit or loss
when the services are received, effective for annual periods beginning on after
1 January 2013.
IAS 27
'Separate financial statements' (revised) effective for annual periods beginning on or after 1
January 2013.
IAS 28
'Investments in associates and joint ventures' (as
revised in 2011) effective for annual periods beginning on after 1 January
2013;
IAS 32
'Financial instruments; Presentation' is amended to clarify that tax effect of a distribution to holders of
equity instruments should be accounted for in accordance with IAS 12 Income
Taxes, effective for annual periods beginning on after 1 January 2013.
IAS 34 'Interim financial
reporting' is
amended to clarify interim reporting of segment information for total assets in
order to enhance consistency with the requirements in IFRS 8 Operating
Segments, effective for annual periods beginning on after 1 January 2013.
IFRIC 20 'Stripping
costs in the production phase of a surface mine' is issued to sets out the accounting for overburden waste
removal (stripping) costs in the production phase of a mine, effective for
annual periods beginning on after 1 January 2013.
ii. Standards,
interpretations and amendments to IFRS that are not yet effective are as
follows:
IFRS 9 'Financial
Instruments' reissued,
incorporating new requirements on accounting for financial liabilities and
carrying over from IAS 39 the requirements for derecognition of financial
assets and financial liabilities. Further, It includes the new general hedge
accounting model, furthermore it allow early adoption of the requirement to
present fair value changes due to own credit on liabilities designated as at
fair value through profit or loss to be presented in other comprehensive
income.
IFRS 10 'Consolidated
Financial Statements', IFRS 12 'Disclosure of Interests in Other Entities' and
IAS 27 'Separate Financial Statements' on consolidation for investment entities are amended to mean that many
funds and similar entities will be exempt from consolidating most of their subsidiaries.
Instead, they will measure them at fair value through profit or loss. The
amendments give an exception to entities that meet an ‘investment entity’
definition and which display particular characteristics. Changes have also been
made IFRS 12 to introduce disclosures that an investment entity needs to make.
IAS 32
'Financial instruments; Presentation' is amended its application guidance and clarify some of the requirements
for offsetting financial assets and financial liabilities on the balance sheet.
IAS 36 'Impairment
of assets' is amended to address the
disclosure of information about the recoverable amount of impaired assets if that
amount is based on fair value less costs of disposal.
IAS 39 'Financial
Instruments: Recognition and Measurement' is amended to provide relief from discontinuing hedge accounting when
novation to a hedging instrument to a central counter party meets specified
criteria.
IFRIC 21 'Levies' is issued to provide guidance on when to recognise a
liability for a levy imposed by a government, both for levies that are
accounted for in accordance with IAS 37 Provisions, Contingent
Liabilities and Contingent Assets and those where the timing and amount of
the levy is certain.
Annual improvements to
IFRS on 2010–12 and 2011-13 cycle on 12 December 2013 contains amendments to
the following standards, with consequential amendments to other standards and
interpretations, these amendments shall be effective for annual periods
beginning on or after 1 July 2014:
IFRS 1 'First-time
Adoption of International Financial Reporting Standards' (changes to the Basis for Conclusions only) is amended
to clarify that an entity, in its first IFRS financial statements, has the
choice between applying an existing and currently effective IFRS or applying
early a new or revised IFRS that is not yet mandatorily effective, provided
that the new or revised IFRS permits early application. An entity is required
to apply the same version of the IFRS throughout the periods covered by those
first IFRS financial statements.
IFRS 2 'Share-based
Payment' is amended to define the
'vesting condition' and 'market condition' and adds definitions for
'performance condition' and 'service condition' (which were previously part of
the definition of 'vesting condition').
IFRS 3 'Business
Combinations' (with consequential
amendments to other standards) is
amended to clarify that contingent consideration that is classified as an asset
or a liability shall be measured at fair value at each reporting date. Further,
clarify that IFRS 3 excludes from its scope the accounting for the formation of
a joint arrangement in the financial statements of the joint arrangement
itself.
IFRS 8 'Operating Segments' is amended to clarify that an entity shall only
provide reconciliations of the total of the reportable segments' assets to the
entity's assets if the segment assets are reported regularly. Further, it
requires an entity to disclose the judgments made by management in applying the
aggregation criteria to operating segments.
IFRS 13 'Fair
Value Measurement' (amendments to the basis of conclusions only, with
consequential amendments to the bases of conclusions of other standards) is
amended to clarify that issuing IFRS 13 and amending IFRS 9 and IAS 39 did not
remove the ability to measure short-term receivables and payables with no
stated interest rate at their invoice amounts without discounting if the effect
of not discounting is immaterial. Further, clarify that the scope of the
portfolio exception defined in paragraph 52 of IFRS 13 includes all contracts
accounted for within the scope of IAS 39 Financial Instruments:
Recognition and Measurement or IFRS 9 Financial Instruments,
regardless of whether they meet the definition of financial assets or financial
liabilities as defined in IAS 32 Financial Instruments: Presentation.
IAS 16 'Property,
Plant and Equipment' is amended to clarify that when an item of property,
plant and equipment is revalued the gross carrying amount is adjusted in a
manner that is consistent with the revaluation of the carrying amount.
IAS 24 'Related
Party Disclosures' that an entity
providing key management personnel services to the reporting entity or to the
parent of the reporting entity is a related party of the reporting entity.
IAS 38 'Intangible
Assets' that when an intangible
asset is revalued the gross carrying amount is adjusted in a manner that is
consistent with the revaluation of the carrying amount.
IAS 40 'Investment
Property' is amended to clarify
that determining whether a specific transaction meets the definition of both a
business combination as defined in IFRS 3 Business
Combinations and investment property as defined in IAS
40 Investment Property requires the separate application of both
standards independently of each other.
-------------------------------------- Summarized Version --------------------------------------
Application
of new and revised International Financial Reporting Standards (IFRS)
(a) Standards,
interpretations and amendments to IFRS which are adopted and are effective in the current year:
IAS 1
'Presentation of Financial Statements' is amended to clarify that only one comparative period – which is the
preceding period – is required for a complete set of financial statements. If
an entity presents additional comparative information, then that additional
information need not be in the form of a complete set of financial statements.
However, such information should be accompanied by related notes and should be
in accordance with IFRS. Furthermore, it clarifies that the ‘third statement of
financial position’, when required, is only required if the effect of
restatement is material to statement of financial position; and
IAS 16 'Property,
Plant and Equipment' is amended
to clarify the accounting of spare parts, stand-by equipment and servicing
equipment. The definition of ‘property, plant and equipment’ in IAS 16 is now
considered in determining whether these items should be accounted for under
that standard. If these items do not meet the definition, then they are
accounted for using IAS 2 Inventories.
There are other new and
amended standards and interpretations that are adopted in the current reporting
year but do not have any material effect over the operations or presentation therefore
not detailed in these financial statements.
(b) Standards,
amendments and interpretations effective in current year but not relevant or do
not have any significant effect are as follows:
IFRS 1
'First-time adoption of International Financial Reporting Standards'. Government loans – (amendments) the amendment is
effective for annual periods on after 1 January 2013;
IFRS 7 'Financial
instruments disclosures' –
offsetting financial assets and financial liabilities, the amendments are effective on
annual periods beginning on after 1 January 2013;
IFRS 10
'Consolidated financial statements'
– replaces the portion of IAS 27 consolidated and separate financial statements
that addresses the accounting for consolidated financial statements, effective
for annual periods beginning on after 1 January 2013;
IFRS 12
'Disclosure of interests in other entities' – disclosures that were previously in IAS 27 related
to consolidated financial statements, as well as all of the disclosures that
were previously included in IAS 31 and IAS 28, effective for annual periods
beginning on after 1 January 2013;
IAS 27
'Separate financial statements' (revised) effective for annual periods beginning on or after 1
January 2013;
There are certain other new
and amended standards and interpretations that are mandatory for accounting
periods beginning on or after July 1, 2012 but are considered not to be
relevant or do not have any significant effect on the operations and are
therefore not detailed in these financial statements.
(c) Standards,
interpretations and amendments to IFRS that are not yet effective are as
follows:
Annual improvements to IFRS
on 2010–12 and 2011-13 cycle on 12 December 2013 contains amendments to the
following standards, with consequential amendments to other standards and
interpretations, these amendments shall be effective for annual periods
beginning on or after 1 July 2014:
IFRS
1 First-time Adoption of International Financial Reporting Standards (changes to the Basis for Conclusions only) is amended
to clarify that an entity, in its first IFRS financial statements, has the
choice between applying an existing and currently effective IFRS or applying
early a new or revised IFRS that is not yet mandatorily effective, provided
that the new or revised IFRS permits early application. An entity is required
to apply the same version of the IFRS throughout the periods covered by those
first IFRS financial statements.
IFRS 2 Share-based
Payment is amended to define the
'vesting condition' and 'market condition' and adds definitions for
'performance condition' and 'service condition' (which were previously part of
the definition of 'vesting condition').
IFRS 3 Business
Combinations (with consequential
amendments to other standards) is
amended to clarify that contingent consideration that is classified as an asset
or a liability shall be measured at fair value at each reporting date. Further,
clarify that IFRS 3 excludes from its scope the accounting for the formation of
a joint arrangement in the financial statements of the joint arrangement
itself.
IFRS 8 Operating Segments is amended to clarify that an entity shall only
provide reconciliations of the total of the reportable segments' assets to the
entity's assets if the segment assets are reported regularly. Further, it
requires an entity to disclose the judgments made by management in applying the
aggregation criteria to operating segments.
IFRS 13 Fair
Value Measurement (amendments to the basis of conclusions only, with
consequential amendments to the bases of conclusions of other standards) is
amended to clarify that issuing IFRS 13 and amending IFRS 9 and IAS 39 did not
remove the ability to measure short-term receivables and payables with no
stated interest rate at their invoice amounts without discounting if the effect
of not discounting is immaterial. Further, clarify that the scope of the
portfolio exception defined in paragraph 52 of IFRS 13 includes all contracts
accounted for within the scope of IAS 39 Financial Instruments:
Recognition and Measurement or IFRS 9 Financial Instruments,
regardless of whether they meet the definition of financial assets or financial
liabilities as defined in IAS 32 Financial Instruments: Presentation.
IAS 16 Property,
Plant and Equipment is amended to clarify that when an item of property,
plant and equipment is revalued the gross carrying amount is adjusted in a
manner that is consistent with the revaluation of the carrying amount.
IAS 24 Related
Party Disclosures that an entity
providing key management personnel services to the reporting entity or to the
parent of the reporting entity is a related party of the reporting entity.
IAS 38 Intangible
Assets that when an intangible asset
is revalued the gross carrying amount is adjusted in a manner that is
consistent with the revaluation of the carrying amount.
IAS
40 Investment Property is
amended to clarify that determining whether a specific transaction meets the
definition of both a business combination as defined in IFRS
3 Business Combinations and investment property as defined
in IAS 40 Investment Property requires the separate application
of both standards independently of each other.
There are certain other
amended standards and interpretations that are pronounced earlier to 12
December 2013 but still are not yet effective, the management has estimated
that they are not expected to have any significant effect and are therefore not
detailed in these financial statements.
The management anticipates
that all of the above standards and interpretations will be adopted to the
extent applicable to them from their effective dates. The adoption of these
standards, amendments and interpretations is also not expected to have any
material impact on the financial statements in the period of their initial
application.
-------------------------------------- Further Summarized Version --------------------------------------
Application
of new and revised IFRS
i.
Standard, interpretation and amendment to IFRS which
is adopted:
IAS
1 'Presentation of Financial Statements' is amended to clarify that entity should classify between whether
items of the other comprehensive income will or will not be subsequently
classified to profit and loss. Further only one comparative period – which is
the preceding period – is required for a complete set of financial statements.
If an entity presents additional comparative information, then that additional
information need not be in the form of a complete set of financial statements.
However, such information should be accompanied by related notes and should be
in accordance with IFRS, effective for annual periods beginning on or after 1
January 2013.
ii.
Standards, amendments and interpretations effective for
annual periods beginning on or after 1 January 2013 but not relevant or do not
have any significant effect are as follows:
·
IFRS 1 'First-time adoption of International
Financial Reporting Standards'
·
IFRS 7 'Financial instruments: Disclosures'
·
IFRS 10 'Consolidated financial statements'.
·
IFRS 11 'Joint arrangements'
·
IFRS 12 'Disclosure of interests in other entities'
·
IFRS 13 'Fair value measurement'
·
IAS 19 'Employee benefits' (revised)
·
IAS 27 'Separate financial statements' (revised)
·
IAS 28 'Investments in associates and joint
ventures' (as revised in 2011)
·
IAS 32 'Financial instruments; Presentation'
·
IAS 34 'Interim financial'
·
IFRIC 20 'Stripping costs in the production phase of
a surface mine'
iii.
Standards, interpretations and amendments to IFRS that
are not yet effective:
There
are number of new amendment to standards and interpretations that are
pronounced earlier to 12 December 2013 but still are not yet effective, the
management anticipates that all of those standards and interpretations will be
adopted to the extent applicable to them from their effective dates. The
adoption of those standards, amendments and interpretations is also not
expected to have any material impact on the financial statements in the period
of their initial application therefore not detailed in these financial
statements.
