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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 196
noteS to the finanCial StatementS
for the year ended 30 June 2015
2. ACCOUNTING POLICIES (CONTINUED)
2.4 Accounting standards and interpretations issued but not yet effective
Standards and interpretations issued but not yet effective up to the date of issuance of the Group’s financial statements are listed below. This listing is of standards and
interpretations issued, which the Group reasonably expects to be applicable at a future date. The Group intends to adopt those standards when they become effective.
IFRS 9 Financial Instruments – Classification and measurement of financial assets, Accounting for financial liabilities and derecognition – 1 January 2018
IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:
Classification and measurement of financial assets
All financial assets are measured at fair value on initial recognition, adjusted for transaction costs if the instrument is not accounted for at fair value through profit
or loss (FVTPL). Debt instruments are subsequently measured at FVTPL, amortised cost or fair value through other comprehensive income (FVOCI), on the basis
of their contractual cash flows and the business model under which the debt instruments are held. There is a fair value option (FVO) that allows financial assets
on initial recognition to be designated as FVTPL if that eliminates or significantly reduces an accounting mismatch. Equity instruments are generally measured at
FVTPL. However, entities have an irrevocable option on an instrument-by-instrument basis to present changes in the fair value of non-trading instruments in other
comprehensive income (OCI) (without subsequent reclassification to profit or loss).
Classification and measurement of financial liabilities
For financial liabilities designated as FVTPL using the FVO, the amount of change in the fair value of such financial liabilities that is attributable to changes in credit risk
must be presented in OCI. The remainder of the change in fair value is presented in profit or loss, unless presentation of the fair value change in respect of the liability’s
credit risk in OCI would create or enlarge an accounting mismatch in profit or loss. All other IAS 39 Financial Instruments: Recognition and Measurement classification
and measurement requirements for financial liabilities have been carried forward into IFRS 9, including the embedded derivative separation rules and the criteria for
using the FVO.
Effective for accounting period beginning on or after
IFRS 9 Financial Instruments – Classification and measurement of financial assets, Accounting for
financial liabilities and derecognition, impairment and hedging
1 January 2018
Sale or contribution of assets between an investor and its associate or joint venture (Amendments to
IFRS 10 and IAS 28)
1 January 2016
Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)
1 January 2016
IFRS 14 Regulatory Deferral Accounts
1 January 2016
IFRS 15 Revenue from Contracts with Customers
1 January 2018
Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)
1 January 2016
Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)
1 January 2016
Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)
1 January 2016
Amendments to IAS 27: Equity Method in Separate Financial Statement
1 January 2016
Annual improvements 2012 – 2014 Cycle
1 July 2016
Disclosure initiative – Amendments to IAS 1
1 January 2016