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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 198
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 (Continued)
Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) - effective 1 January 2016
This amendment to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint
Ventures (2011) was made to address issues that have arisen in the context of applying the consolidation exception for investment entities by clarifying the following
points:
the exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment
entity, even if the investment entity measures all of its subsidiaries at fair value.
a subsidiary that provides services related to the parent’s investment activities should not be consolidated if the subsidiary itself is an investment entity.
when applying the equity method to an associate or a joint venture, a non-investment entity investor in an investment entity may retain the fair value measurement
applied by the associate or joint venture to its interests in subsidiaries.
an investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12.
The amendment will not have an impact on the Group as it is not considered as an Investment entity.
IFRS 14 Regulatory Deferral Accounts - effective 1 January 2016
IFRS 14 permits an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for ‘regulatory
deferral account balances’ in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements.
This new standard will not have an impact, as the Group is not a first time adopter of IFRS.
IFRS 15 Revenue from Contracts with Customers - effective 1 January 2018
IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers.
The five steps in the model are as follows:
identify the contract with the customer;
identify the performance obligations in the contract;
determine the transaction price;
allocate the transaction price to the performance obligations in the contracts; and
recognise revenue when (or as) the entity satisfies a performance obligation.
Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and
various related matters. New disclosures about revenue are also introduced.
The Directors are still assessing the impact of this new standard.
Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11) - effective 1 January 2016
Amends IFRS 11 Joint Arrangements to require an acquirer of an interest in a joint operation in which the activity constitutes a business (as defined in IFRS 3 Business
Combinations) to:
apply all of the business combinations accounting principles in IFRS 3 and other IFRSs, except for those principles that conflict with the guidance in IFRS 11
disclose the information required by IFRS 3 and other IFRSs for business combinations.
The amendments apply both to the initial acquisition of an interest in joint operation, and the acquisition of an additional interest in a joint operation (in the latter
case, previously held interests are not remeasured).
The Directors are still assessing the impact of this new standard.