Republic Bank Limited
78
For the year ended September 30, 2015. Expressed in thousands of Trinidad and Tobago dollars ($’000) except where otherwise stated
Notes to theConsolidatedFinancial Statements
4
Financial
2 SIGNIFICANT ACCOUNTING POLICIES
(continued)
2.4 Standards in issue not yet effective
(continued)
The Group is currently assessing the impact of adopting these standards and interpretations. Since the impact of adoption
depends on the assets held by the Group at the date of adoption, it is not practical to quantify the effect at this time.
IAS 1 – Disclosure Initiative – Amendments to IAS 1 (effective January 1, 2016)
The amendments to IAS 1 Presentation of Financial Statements clarify, rather than significantly change, existing IAS 1 requirements.
The amendments clarify the following:
• The materiality requirements in IAS 1
• That specific line items in the statement of income and other comprehensive income (OCI) and the statement of financial
position may be disaggregated
• That entities have flexibility as to the order in which they present the notes to financial statements
• That the share of OCI of associates and joint ventures accounted for using the equity method must be presented in aggregate
as a single line item, and classified between those items that will or will not be subsequently reclassified to the statement of
income.
Furthermore, the amendments clarify the requirements that apply when additional subtotals are presented in the statement of
financial position and the statement of income and OCI.
These amendments are intended to assist entities in applying judgement when meeting the presentation and disclosure
requirements in IFRS, and do not affect recognition and measurement.
IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and Amortisation – Amendments to IAS 16
and IAS 38 (effective January 1, 2016)
The amendments clarify the principle in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets that revenue reflects a
pattern of economic benefits that are generated from operating a business (of which the asset is part) rather than the economic
benefits that are consumed through use of the asset. As a result, the ratio of revenue generated to total revenue expected to be
generated cannot be used to depreciate property, plant and equipment and may only be used in very limited circumstances to
amortise intangible assets.
Entities currently using revenue-based amortisation methods for property, plant and equipment will need to change their current
amortisation approach to an acceptable method, such as the diminishing balance method, which would recognise increased
amortisation in the early part of the asset’s useful life. Revenue generated may be used to amortise an intangible asset only in
very limited circumstances.
IFRS 9 – Financial Instruments: Classification and Measurement (effective January 1, 2018)
IFRS 9 as issued reflects the first phase of the IASB’s work on the replacement of IAS 39 and applies to classification and
measurement of financial assets and liabilities as defined in IAS 39. In subsequent phases, the Board will address impairment
and hedge accounting. The application of IFRS 9 may change the measurement and presentation of many financial instruments,
depending on their contractual cash flows and business model under which they are held. The impairment requirements will
generally result in earlier recognition of credit losses. The new hedging model may lead to more economic hedging strategies
meeting the requirements for hedge accounting.
