Page 101 - S P Setia Annual Report 2013
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Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 99





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






1. SiGniFicant accOUntinG POlicieS (cOnt’D)

(c) new/Revised FRSs, amendments to FRSs and ic interpretations that are not yet effective (cont’d)
Effective for fnancial
periods beginning on
new/Revised FRSs, amendments to FRSs and ic interpretations or after
Amendments to FRS 10, Consolidated Financial Statements, Joint Arrangements and Disclosure 1 January 2013
FRS 11 and FRS 12 of Interests in Other Entities: Transition Guidance
Amendments to FRS 10, Investment Entities 1 January 2014
FRS 12 and FRS 127
Amendments to FRS 132 Financial Instruments: Presentation – Offsetting Financial Assets 1 January 2014
and Financial Liabilities
Amendments to FRS 136 Recoverable Amount Disclosures for Non-Financial Assets 1 January 2014
Amendments to FRS 139 Novation of Derivatives and Continuation of Hedge Accounting 1 January 2014
IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine 1 January 2013
IC Interpretation 21 Levies 1 January 2014
The above new/revised FRSs, Amendments to FRSs and IC Interpretations are expected to have no signifcant impact on the fnancial
statements of the Group and the Company upon their initial application except for the following:
FRS 9, Financial Instruments

FRS 9 addresses the classifcation, measurement and recognition of fnancial assets and fnancial liabilities. It replaces the parts of FRS
139 that relate to the classifcation and measurement of fnancial instruments.
FRS 9 requires fnancial assets to be classifed into two measurement categories: those measured at fair value and those measured
at amortised cost. The determination is made at initial recognition. The classifcation depends on the entity’s business model for
managing its fnancial instruments and the contractual cash fow characteristics of the instrument.

For fnancial liabilities, the standard retains most of the FRS 139 requirements. The main change is in cases where the fair value option is
taken for fnancial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income
rather than the income statement, unless this creates an accounting mismatch.
The Group and the Company have yet to assess FRS 9’s full impact and intends to adopt FRS 9 no later than the accounting period
beginning on or after 1 January 2015.
FRS 10, Consolidated Financial Statements

FRS 10, Consolidated Financial Statements introduces a new single control model to determining which investees should be consolidated.
FRS 10 supersedes FRS 127, Consolidated and Separated Financial Statements and IC Interpretation 112, Consolidation – Special
Purpose Entities. There are three elements to the defnition of control in FRS 10:- (i) power by investor over an investee, (ii) exposure,
or rights, to variable returns from investor’s involvement with the investee, and (iii) investor’s ability to affect those returns through
its power over the investee. The Group is yet to assess FRS 10’s full impact and intends to adopt FRS 10 no later than the accounting
period beginning on or after 1 January 2013.

FRS 11, Joint Arrangements

FRS 11, Joint Arrangements establishes the principles for classifcation and accounting for joints arrangements and supersedes FRS
131, Interests in Joint Ventures. Under FRS 11, a joint arrangement may be classifed as joint venture or joint operation. Interest in joint
venture will be accounted for using the equity method whilst interest in joint operation will be accounted for using the applicable
FRSs relating to the underlying assets, liabilities, income and expense from the joint operations. The Group is yet to assess FRS 11’s full
impact and intends to adopt FRS 11 no later than the accounting period beginning on or after 1 January 2013.
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