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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 194
noteS to the finanCial StatementS
for the year ended 30 June 2015
2. ACCOUNTING POLICIES (CONTINUED)
2.3 Changes in accounting policies and disclosures (Continued)
New and amended standards and interpretations (Continued)
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) – effective 1 January 2014
These amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements were
made to:
provide ‘investment entities’ (as defined) an exemption from the consolidation of particular subsidiaries and instead require that an investment entity measure
the investment in each eligible subsidiary at fair value through profit or loss in accordance with IFRS 9 Financial Instruments or IAS 39 Financial Instruments:
Recognition and Measurement;
require additional disclosure about why the entity is considered an investment entity, details of the entity’s unconsolidated subsidiaries, and the nature of
relationship and certain transactions between the investment entity and its subsidiaries; and
require an investment entity to account for its investment in a relevant subsidiary in the same way in its consolidated and separate financial statements (or to only
provide separate financial statements if all subsidiaries are unconsolidated).
These amendments did not have an impact as the Group is not considered to be an investment entity.
Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36) – effective 1 January 2014
IAS 36 Impairment of Assets was amended to reduce the circumstances in which the recoverable amount of assets or cash-generating units is required to be disclosed,
clarify the disclosures required, and to introduce an explicit requirement to disclose the discount rate used in determining impairment (or reversals) where recoverable
amount (based on fair value less costs of disposal) is determined using a present value technique.
These amendments did not have an impact in the financial statements.
Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39) – effective 1 January 2014
The amendments to IAS 39 Financial Instruments: Recognition and Measurement were made to clarify that there is no need to discontinue hedge accounting if a
hedging derivative is novated, provided certain criteria are met.
A novation indicates an event where the original parties to a derivative agree that one or more clearing counterparties replace their original counterparty to become the
new counterparty to each of the parties. In order to apply the amendments and continue hedge accounting, novation to a central counterparty (CCP) must happen as
a consequence of laws or regulations or the introduction of laws or regulations.
The Group did not enter into any hedge arrangement which required additional disclosure.
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) –effective 1 July 2014
The amendment was made to clarify the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to
periods of service. In addition, it permits a practical expedient if the amount of the contributions is independent of the number of years of service, in that contribution,
can, but are not required, to be recognised as a reduction in the service cost in the period in which the related service is rendered.
This amendment is not applicable for the Group as the Group does not have any defined benefit plans.