107
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
32.
Events occurring after balance sheet date
On 15 January 2015, as part of an internal exercise, the Company proposed to transfer 2,100,000
ordinary shares or its entire 70% equity interest in Vac-Tech for a total consideration of $8,400,000
to Mencast Energy, a company jointly owned by the Company and MIS Investment Pte Ltd.
Mencast Energy is a 70% - held subsidiary of the Company. Accordingly, the Company in effect
disposed 21% equity interests in Vac-Tech under the said transfer, pursuant to which Vac-Tech
become an indirectly owned subsidiary of the company.
As at the date of audit report, the proposed transfer of shares is not yet completed.
33.
New or revised accounting standards and interpretations
Below are the mandatory standards, amendments and interpretations to existing standards that
have been published, and are relevant for the Group’s accounting periods beginning on or after 1
January 2015 and which the Group has not early adopted:
• FRS 102
Share-based Payment
(effective for annual periods beginning on or after 1 July 2014)
The amendment clarifies the definition of vesting condition and separately defines
“performance condition” and “service condition”. The Group will apply this amendment
from 1 January 2015, but this is not expected to have any significant impact on the financial
statements of the Group.
• FRS 103
Business Combinations
(effective for annual periods beginning on or after 1 July
2014)
The standard is amended to clarify that an obligation to pay contingent consideration which
meets the definition of a financial instrument is classified as a financial liability or as equity,
on the basis of the definitions in FRS 32 Financial instruments: Presentation. The standard
is further amended to clarify that all non-equity contingent consideration, both financial and
non-financial, is measured at fair value at each reporting date, with changes in fair value
recognised in profit and loss.
The standard is also amended to clarify that FRS 103 does not apply to the accounting for the
formation of any joint arrangement under FRS 111. The amendment also clarifies that the
scope exemption only applies in the financial statements of the joint arrangement itself.
The Group will apply this amendment for business combinations taking place on/after 1
January 2015.
• FRS 108
Operating Segments
(effective for annual periods beginning on or after 1 July 2014)
The standard is amended to require disclosure of the judgements made by management in
aggregating operating segments. This includes a description of the segments which have
been aggregated and the economic indicators which have been assessed in determining that
the aggregated segments share similar economic characteristics. The standard is further
amended to require a reconciliation of segment assets to the entity’s assets when segment
assets are reported. This amendment will not result in any changes to the Group’s accounting
policies but will require more disclosures in the financial statements.
