Page 51 - ar2013_

KINGSMEN CREATIVES LTD ANNUAL REPORT 2013
49
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3 Standards issued but not yet effective
The Group has not adopted the following standards that have been issued but not yet effective:
Description Effective for annual periods
beginning on or afer
Revised FRS 27 Separate Financial Statements 1 January 2014
Revised FRS 28 Investments in Associates and Joint Ventures 1 January 2014
FRS 110 Consolidated Financial Statements 1 January 2014
FRS 111 Joint Arrangements 1 January 2014
FRS 112 Disclosure of Interests in Other Entities 1 January 2014
Amendments to FRS 32 Offsetting Financial Assets and Financial Liabilities 1 January 2014
Amendments to the transition guidance of FRS 110 Consolidated Financial Statements, FRS
111 Joint Arrangements and FRS 112 Disclosure of Interests in Other Entities
1 January 2014
Amendments to FRS 110, FRS 112 and FRS 27 Investment Entities 1 January 2014
Amendments to FRS 36 Recoverable Amount Disclosures for Non-financial Assets 1 January 2014
Amendments to FRS 39 Novation of Derivatives and Continuation of Hedge Accounting 1 January 2014
Improvements to FRS (January 2014) 1 July 2014
Amendments to FRS 19 Defined Benefit Plans: Employee Contribution 1 July 2014
Improvements to FRS (February 2014) 1 July 2014
Except for FRS 110, FRS 111, Revised FRS 28 and FRS 112, the directors expect that the adoption of the other standards
above will have no material impact on the financial statements in the period of initial application. The nature of the impending
changes in accounting policy on adoption of FRS 111, Revised FRS 28 and FRS 112 are described below.
FRS 110 Consolidated Financial Statements
FRS 110 establishes a single control model that applies to all entities including special purpose entities. The changes
introduced by FRS 110 will require management to exercise significant judgment to determine which entities are controlled,
and therefore are required to be consolidated by the Group, compared with the requirements that were in FRS 27. Therefore,
FRS 110 may change which entities are consolidated within a group. The Revised FRS 27 was amended to address accounting
for subsidiaries, jointly controlled entities and associates in separate financial statements.
The Group is currently determining the impact of the changes to the concept of control.
FRS 111 Joint Arrangements and Revised FRS 28 Investments in Associates and Joint Ventures
FRS 111 Joint Arrangements and Revised FRS 28 Investments in Associates and Joint Ventures are effective for financial
periods beginning on or afer 1 January 2014.
FRS 111 classifies joint arrangements either as joint operations or joint ventures. Joint operation is a joint arrangement
whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities of the
arrangement whereas joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the arrangement.
FRS 111 requires the determination of joint arrangement’s classification to be based on the parties’ rights and obligations
under the arrangement, with the existence of a separate legal vehicle no longer being the key factor. FRS 111 disallows
proportionate consolidation and requires joint ventures to be accounted for using the equity method. The revised FRS 28 was
amended to describe the application of equity method to investments in joint ventures in addition to associates.
FRS 112 Disclosure of Interests in Other Entities
FRS 112 Disclosure of Interests in Other Entities is effective for financial periods beginning on or afer 1 January 2014.
FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including
joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. FRS 112 requires an entity to
disclose information that helps users of its financial statements to evaluate the nature and risks associated with its interests
in other entities and the effects of those interests on its financial statements. As this is a disclosure standard, it will have no
impact to the financial position and financial performance of the Group when applied in 2014.
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBR 2013