2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.2 Standards, amendments to published standards and interpretations that are effective
The Group has applied the following amendments for the first time for the financial year beginning on 1 January 2015:
• Annual Improvements to MFRSs 2010 – 2012 Cycle
• Annual Improvements to MFRSs 2011 – 2013 Cycle
• Amendments to MFRS 119 “Defined Benefit Plans: Employees Contributions”
The adoption of these standards has required additional disclosures. Other than that, the adoption of these amendments
did not have any impact on the current or any prior year and are not likely to affect future periods.
2.3 Standards and amendments that have been issued but not yet effective
A number of new standards and amendments to standards and interpretations are effective for financial years beginning
on or after 1 January 2016.
• Amendment to MFRS 11 ‘Joint Arrangements’ (effective from 1 January 2016) requires an investor to apply the
principles of MFRS 3 ‘Business Combination’ when it acquires an interest in a joint operation that constitutes a
business. The amendments are applicable to both the acquisition of the initial interest in a joint operation and the
acquisition of additional interest in the same joint operation. However, a previously held interest is not re-measured
when the acquisition of an additional interest in the same joint operation results in retaining joint control.
• Amendments to MFRS 116 ‘Property, Plant and Equipment’ and MFRS 138 ‘Intangible Assets’ (effective from
1 January 2016) clarify that the use of revenue-based methods to calculate the depreciation of an item of property,
plant and equipment is not appropriate. This is because revenue generated by an activity that includes the use of
an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset.
The amendments to MFRS 138 also clarify that revenue is generally presumed to be an inappropriate basis for
measuring the consumption of the economic benefits embodied in an intangible asset. This presumption can be
overcome only in the limited circumstances where the intangible asset is expressed as a measure of revenue or
where it can be demonstrated that revenue and the consumption of the economic benefits of the intangible asset
are highly correlated.
• Amendments to MFRS 127 ‘Equity Method in Separate Financial Statements’ (effective from 1 January 2016). The
amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures
and associate in their separate financial statements. Entities already applying MFRS and electing to change to the
equity method in its separate financial statements will have to apply this change retrospectively.
• Amendments to MFRS 10, MFRS 12 and MFRS 128 ‘Investment Entities: Applying the Consolidation Exception’
(effective from 1 January 2016). The amendments clarify that the exemption from presenting consolidated financial
statements applies to a parent entity that is a subsidiary of an investment entity, when the investment entity
measures all of its subsidiaries at fair value. The amendments further clarify that only a subsidiary that is not an
investment entity itself and provides support services to the investment entity is consolidated. In addition, the
amendments also provides that if an entity that is not itself an investment entity has an interest in an associate or
joint venture that is an investment entity, the entity may, when applying the equity method, retain the fair value
measurement applied by that investment entity associate or joint venture to the investment entity associate’s or
joint venture’s interests in subsidiaries.
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NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
