100 / 248
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
98
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
1.
SIGNIFICANT ACCOUNTING POLICIES continued
Standards, interpretations and amendments effective in 2015
The following standards, interpretations and amendments are effective for the first time for the year
ended 31 May 2015 and have not had an impact on the Group’s and Company’s financial statements:
•
•
Amendments to IFRS 10, IFRS 12 and IAS 27 for investment entities
•
•
Amendments to IAS 32 –
Financial Instruments: Presentation
– requirements for offsetting financial
assets and financial liabilities
•
•
Amendment to IAS 36 –
Impairment of Assets
regarding recoverable amount disclosures
•
•
Amendment to IAS 39 –
Financial Instruments: Recognition and Measurement
– novation of
derivatives and hedge accounting
•
•
Amendment to IAS 19 –
Employee Benefits
regarding defined benefit plan
•
•
IFRIC 21 –
Accounting for Levies
Standards, amendments and interpretations not yet effective
The Group has evaluated the effect of all new standards, amendments and interpretations that have
been issued but which are not yet effective. Based on the evaluation, management does not expect
these standards, amendments and interpretations to have a significant impact on the Group’s results
and disclosures. The expected implications of applicable standards, amendments and interpretations
are dealt with below.
IFRS 9 –
Financial Instruments
IFRS 9 –
Financial Instruments
addresses the classification, measurement and recognition of financial
assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the
guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9
retains but simplifies the mixed measurement model and establishes three primary measurement
categories for financial assets: amortised cost, fair value through other comprehensive income and fair
value through profit or loss. The basis of classification depends on the entity’s business model and the
contractual cash flow characteristics of the financial asset. Investments in equity instruments are
required to be measured at fair value through profit or loss with the irrevocable option at inception
to present changes in fair value in other comprehensive income not recycling. There is now a new
expected credit losses model that replaces the incurred loss impairment model used in IAS 39. For
financial liabilities there were no changes to classification and measurement except for the recognition
of changes in own credit risk in other comprehensive income, for liabilities designated at fair value
through profit or loss. IFRS 9 relaxes the requirements for hedge effectiveness by replacing the bright
line hedge effectiveness tests. It requires an economic relationship between the hedged item and
hedging instrument and for the “hedged ratio” to be the same as the one management actually uses
for risk management purposes. Contemporaneous documentation is still required but is different to
that currently prepared under IAS 39.
The standard is effective for accounting periods beginning on or after 1 January 2018. Early adoption
is permitted. The Group is currently considering the impact on the consolidated financial statements.