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(b) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group but not yet

effective and have not been early adopted. (continued)

The Group will apply the following new standards, amendments to standards and interpretations from annual period beginning on 1

January 2011: (continued)

• The revised FRS 124 “Related party disclosures” (effective from 1 January 2012) removes the exemption to disclose transactions

between government-related entities and the government, and all other government-related entities. The following new disclosures are now required for government related entities:

– The name of the government and the nature of their relationship; – The nature and amount of each individually signifcant transactions; and – The extent of any collectively signifcant transactions, qualitatively or quantitatively.

• The revised FRS 127 “Consolidated and separate fnancial statements” (applies prospectively to transactions with non-controlling

interests from 1 July 2010) requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. When this standard is effective, all earnings and losses of the subsidiary are attributed to the parent and the non-controlling interest, even if the attribution of losses to the non-controlling interest results in a debit balance in the shareholders’ equity. Proft or loss attribution to non-controlling interests for prior years is not restated. The standard also specifes the accounting when control is lost. Any remaining interest in the entity is re-measured to fair value, and a gain or loss is recognised in proft or loss. These changes will be applied prospectively and only affect future acquisition or loss of control of subsidiaries and transactions with non-controlling interests.

• Amendment to FRS 2 “Share-based payment: Group cash-settled share-based payment transactions” (effective from 1 January 2011)

clarifes that an entity that receives goods or services in a share-based payment arrangement must account for those goods or services no matter which entity in the Group settles the transaction, and no matter whether the transaction is settled in shares or cash. The amendments also incorporate guidance previously included in IC Interpretation 8 “Scope of FRS 2” and IC Interpretation 11 “FRS 2 – Group and Treasury share transactions”, which shall be withdrawn upon application of this amendment. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• Amendments to FRS 7 “Financial instruments: Disclosures” and FRS 1 “First-time adoption of fnancial reporting standards” (effective

from 1 January 2011) requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy.

The Group has applied the transitional provision which exempts entities from disclosing the possible impact arising from the initial

application of this amendment on the fnancial statements of the Group and Company.

• Amendment to FRS 132 “Financial instruments: Presentation” on classifcation of rights issues (effective from 1 March 2010)

addresses accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. Provided certain conditions are met, such rights issues are now classifed as equity instruments instead of as derivative liabilities, regardless of the currency in which the exercise price is denominated. Currently, these issues are accounted for as derivative liabilities. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• IC Interpretation 4 “Determining whether an arrangement contains a lease” (effective from 1 January 2011) requires the Group to

identify any arrangement that does not take the legal form of a lease, but conveys a right to use an asset in return for a payment or series of payments. This interpretation provides guidance for determining whether such arrangements are, or contain, leases. The assessment is based on the substance of the arrangement and requires assessment of whether the fulfllment of the arrangement is dependent on the use of a specifc asset and the arrangement conveys a right to use the asset. If the arrangement contains a lease, the requirements of FRS 117 “Leases” should be applied to the lease element of the arrangement. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• IC Interpretation 16 “Hedges of a net investment in a foreign operation” (effective from 1 July 2010) clarifes the accounting

treatment in respect of net investment hedging. This includes the fact that net investment hedging relates to differences in functional currency, not presentation currency, and hedging instruments may be held by any entity in the group. The requirements of FRS 121 “The effects of changes in foreign exchange rates” do apply to the hedged item. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.