108
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
33.
New or revised accounting standards and interpretations
(continued)
• FRS 16
Property, Plant and Equipment
(effective for annual periods beginning on or after 1
July 2014)
The standard is amended to clarify how the gross carrying amount and the accumulated
depreciation are treated where an entity uses the revaluation model. The carrying amount of
the asset is restated to the revalued amount. The split between gross carrying amount and
accumulated depreciation is treated in one of the following ways:
• either the gross carrying amount is restated in a manner consistent with the
revaluation of the carrying amount, and the accumulated depreciation is adjusted to
equal the difference between the gross carrying amount and the carrying amount after
taking into account accumulated impairment losses; or
• the accumulated depreciation is eliminated against the gross carrying amount of the
asset.
This amendment is not expected to have any significant impact on the financial statements of
the Group.
• FRS 24
Related Party Disclosures
(effective for annual periods beginning on or after 1 July
2014)
The standard is amended to include, as a related party, an entity that provides key
management personnel services to the reporting entity or to the parent of the reporting entity
(‘the management entity’). The reporting entity is not required to disclose the compensation
paid by the management entity to the management entity’s employees or directors, but it is
required to disclose the amounts charged to the reporting entity by the management entity
for services provided.
This amendment will not result in any changes to the Group’s accounting policies but will
require more disclosures in the financial statements.
• FRS 113
Fair value Measurement
(effective for annual periods beginning on or after 1 July
2014)
The amendment clarifies that the portfolio exception in FRS 113, which allows an entity to
measure the fair value of a group of financial assets and financial liabilities on a net basis,
applies to all contracts (including non-financial contracts) within the scope of FRS 39.
This amendment is not expected to have any significant impact on the financial statement of
the Group.
• FRS 115
Revenue from Contracts with Customers
(effective for annual periods beginning on
or after 1 July 2017)
FRS 115 is the new standard on revenue recognition. It will replace with the previous
standards on revenue - FRS 18
Revenue
and FRS 11
Construction Contracts
and related
interpretations on revenue recognition such as INT FRS 115
Agreements for the Construction
of Real Estate
. This new standard introduces a 5-step model when to recognise revenue and
how much revenue to recognise and may affect the company’s recognition, measurement,
timing and disclosure of revenue.
The management anticipates this amendment will not have any significant impact on the
financial statements of the Group.
