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Annual Report 2013
• 69 •
NOTES TO THE FINANCIAL STATEMENTS
- 31 DECEMBER 2013
(CONT’D)
2.
Summary of significant accounting policies (cont’d)
2.2 Changes in accounting policies (cont’d)
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MFRS 10: Consolidated Financial Statements (cont’d)
Under MFRS 10, an investor controls an investee when (a) the investor has power over an investee, (b)
the investor has exposure, or rights, to variable returns from its investment with the investee, and (c) the
investor has ability to use its power over the investee to affect the amount of the investor’s returns. Under
MFRS 127 Consolidated and Separate Financial Statements, control was defined as the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
MFRS 10 includes detailed guidance to explain when an investor that owns less than 50 per cent of the
voting shares in an investee has control over the investee. MFRS 10 requires the investor to take into
account all relevant facts and circumstances, particularly the size of the investor’s holding of voting rights
relative to the size and dispersion of holdings of the other vote holders.
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MFRS 12 Disclosures of Interests in Other Entities
MFRS 12 includes all disclosure requirements for interests in subsidiaries, joint arrangements, associates
and structured entities. A number of new disclosures are required. This standard affects disclosures only
and has no impact on the Group’s financial position or performance.
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MFRS 13: Fair Value Measurement
MFRS 13 established a single source of guidance under MFRS for all fair value measurements. MFRS 13
does not change when an entity is required to use fair value, but rather provides guidance on how to
measure fair value under MFRS. MFRS 13 defines fair value as an exit price. As a result of the guidance in
MFRS 13, the Group and the Company re-assessed their policies for measuring fair values, in particular,
their valuation inputs such as non-performance risk for fair value measurement of liabilities. MFRS 13 also
requires additional disclosures.
Application of MFRS 13 has not materially impacted the fair value measurement of the Group and the
Company. Additional disclosures where required, are provided in the individual notes relating to the
assets and liabilities whose fair values were determined.
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MFRS 127: Separate Financial Statements
As a consequence of the new MFRS 10 and MFRS 12, MFRS 127 is limited to accounting for subsidiaries,
jointly controlled entities and associates in separate financial statements.
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MFRS 128: Investments in Associates and Joint Ventures
As a consequence of the new MFRS 11 and MFRS 12, MFRS 128 is renamed as MFRS 128 Investments
in Associates and Joint Ventures. This new standard describes the application of the equity method to
investments in joint ventures in addition to associates.
2.3 Standards issued but not yet effective
The standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s
and the Company’s financial statements are disclosed below. The Group and the Company intend to adopt these
standards, if applicable, when they become effective.
MFRS effective for annual periods beginning on or after 1 January 2014
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Amendments to MFRS 10, MFRS 12 and MFRS 127, Investment Entities
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Amendments to MFRS 132, Offsetting Financial Assets and Financial Liabilities
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Amendments to MFRS 136, Recoverable Amount Disclosures for Non-Financial Assets
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Amendments to MFRS 139, Novation of Derivatives and Continuation of Hedge Accounting
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IC Interpretation 21, Levies