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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)

• IC Interpretation 17 “Distribution of non-cash assets to owners” (effective from 1 July 2010) provides guidance on accounting for

arrangements whereby an entity distributes non-cash assets to shareholders either as a distribution of reserves or as dividends. FRS 5 has also been amended to require that assets are classifed as held for distribution only when they are available for distribution in their present condition and the distribution is highly probable. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• IC Interpretation 18 “Transfers of assets from customers” (effective prospectively for assets received on or after 1 January 2011)

provides guidance where an entity receives from a customer an item of property, plant and equipment (or cash to acquire such an asset) that the entity must then use to connect the customer to a network or to provide the customer with services. Where the transferred item meets the defnition of an asset, the asset is recognised as an item of property, plant and equipment at its fair value. Revenue is recognised for each separate service performed in accordance with the recognition criteria of FRS 118 “Revenue”. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• IC Interpretation 19 “Extinguishing fnancial liabilities with equity instruments” (effective from 1 July 2011) provides clarifcation when

an entity renegotiates the terms of a fnancial liability with its creditor and the creditor agrees to accept the entity’s shares or other equity instruments to settle the fnancial liability fully or partially. A gain or loss, being the difference between the carrying value of the fnancial liability and the fair value of the equity instruments issued, shall be recognised in proft or loss. Entities are no longer permitted to reclassify the carrying value of the existing fnancial liability into equity with no gain or loss recognised in proft or loss. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• Amendments to IC Interpretation 14 “FRS 119 – The limit on a defned beneft assets, minimum funding requirements and

their interaction” (effective from 1 July 2011) permits an entity to recognise the prepayments of contributions as an asset, rather than an expense in circumstances when the entity is subject to a minimum funding requirement and makes an early payment of contributions to meet those requirements. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

Improvements to FRSs:

• FRS 2 (effective from 1 July 2010) clarifes that contributions of a business on formation of a joint venture and common control

transactions are outside the scope of FRS 2. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.

• FRS 3 (effective from 1 January 2011)

– Clarifes that the choice of measuring non-controlling interests at fair value or at the proportionate share of the acquiree’s net

assets applies only to instruments that represent present ownership interests and entitle their holders to a proportionate share of the net assets in the event of liquidation. All other components of non-controlling interest are measured at fair value unless another measurement basis is required by FRS.

– Clarifes that the amendments to FRS 7, FRS 132 and FRS 139 that eliminate the exemption for contingent consideration, do

not apply to contingent consideration that arose from business combinations whose acquisition dates precede the application of FRS 3 (2010). Those contingent consideration arrangements are to be accounted for in accordance with the guidance in FRS 3 (2005).

• FRS 5 “Non-current assets held for sale and discontinued operations” (effective from 1 July 2010) clarifes that all of a subsidiary’s

assets and liabilities are classifed as held for sale if a partial disposal sale plan results in loss of control. Relevant disclosure should be made for this subsidiary if the defnition of a discontinued operation is met. The amendment to this standard is not anticipated to have a material impact on the Group’s fnancial statements.

• FRS 101 “Presentation of fnancial statements” (effective from 1 January 2011) clarifes that an entity shall present an

analysis of other comprehensive income for each component of equity, either in the statement of changes in equity or in the notes to the fnancial statements. The amendment to this standard is not anticipated to have material impact on the Group’s fnancial statements.