Annual Report 2015
77
2 SIGNIFICANT ACCOUNTING POLICIES
(continued)
2.3 Changes in accounting policies
(continued)
IAS 19 – Defined Benefit Plans: Employee Contributions – Amendments to IAS 19 (effective July 1, 2014)
(continued)
These changes provide a practical expedient for simplifying the accounting for contributions from employees or third parties in
certain situations.
IAS 32 – Offsetting Financial Assets and Financial liabilities (effective January 1, 2014)
These amendments clarify the meaning of the phrase ‘currently has a legally enforceable right to set-off’ by stating that rights
of set-off must not only be legally enforceable in the normal course of business, but must also be enforceable in the event of
default and the event of bankruptcy or insolvency of all of the counterparties to the contract, including the reporting entity
itself. The amendments also clarify that rights of set-off must not be contingent on a future event. The amendments also clarify
the application of the IAS 32 offsetting criteria to settlement systems (such as central clearing house systems) which apply gross
settlement mechanisms that are not simultaneous.
IAS 36 – Recoverable Amount Disclosures for Non-Financial Assets – Amendments to IAS 36 (effective January 1, 2014)
The amendments clarify the disclosure requirements in respect of fair value less costs of disposal. When IAS 36 Impairment
of Assets was originally changed as a result of IFRS 13, the IASB intended to require disclosure of information about the
recoverable amount of impaired assets if that amount was based on fair value less costs to sell. An unintended consequence
of the amendments was that an entity would be required to disclose the recoverable amount for each cash-generating unit for
which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit was significant in
comparison to the entity’s total carrying amount of goodwill or intangible assets with indefinite useful lives. This requirement has
been deleted by the amendment. However, the IASB has added two disclosure requirements:
Additional information about the fair value measurement of impaired assets when the recoverable amount is based on fair value
less costs of disposal.
Information about the discount rates that have been used when the recoverable amount is based on fair value less costs of
disposal using a present value technique. The amendments harmonise disclosure requirements between value in use and fair
value less costs of disposal.
IFRIC 21 – Levies (effective January 1, 2014)
IFRIC 21 is applicable to all levies other than outflows that are within the scope of other standards (e.g. IAS 12) and fines or
other penalties for breaches of legislation. Levies are defined in the interpretation as outflows of resources embodying economic
benefits imposed by government on entities in accordance with legislation.
The interpretation clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by
the relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment
occurs over a period of time, in accordance with the relevant legislation. For a levy that is triggered upon reaching a minimum
threshold, the interpretation clarifies that no liability is recognised before the specified minimum threshold is reached.
2.4 Standards in issue not yet effective
The following is a list of standards and interpretations issued that are not yet effective up to the date of issuance of the Group’s
financial statements. The Group reasonably expects these standards and interpretations to be applicable at a future date and
intends to adopt these standards and interpretations when they become effective.
