FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
51
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(a) Basis of preparation (Cont’d)
Interpretations and amendments to published standards effective in 2015
On 1 January 2015, the Group and the Company adopted all the new and revised FRSs and Interpretations to
FRS (“INT FRS”) that are effective from that date and are relevant to its operations. The adoption of these new/
revised FRSs and INT FRSs does not result in changes to the Group’s and Company’s accounting policies and has
no material effect on the amounts reported for the current or prior years.
At the date of authorisation of these financial statements, the following FRSs, INT FRSs and amendments to FRS
that are relevant to the Group and the Company were issued but not effective:
• FRS 109
Financial Instruments
2
• FRS 115
Revenue from Contracts with Customers
2
• Amendments to FRS 1
Presentation of Financial Statements: Disclosure Initiative
1
• Amendments to FRS 27
Separate Financial Statements: Equity Method in Separate Financial Statements
1
• Amendments to FRS 16
Property, Plant and Equipment
and
FRS 38
Intangible Assets: Clarification of
Acceptable Methods of Depreciation and Amortisation
1
• Amendments to FRS 110
Consolidated Financial Statements
and
FRS 28
Investments in Associates and Joint
Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
3
1
Applies to annual periods beginning on or after January 1, 2016, with early application permitted.
2
Applies to annual periods beginning on or after January 1, 2018, with early application permitted.
3
Application has been deferred indefinitely, however, early application is still permitted.
The management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRS in future
periods will not have a material impact on the financial statements of the Group and of the Company in the
period of their initial adoption except for the following:
FRS 109
Financial Instruments
FRS 109 was issued in December 2014 to replace FRS 39
Financial Instruments: Recognition and Measurement
and introduced new requirements for (i) the classification and measurement of financial assets and financial
liabilities (ii) general hedge accounting (iii) impairment requirements for financial assets.
Key requirements of FRS 109:
• All recognised financial assets that are within the scope of FRS 39 are now required to be subsequently
measured at amortised cost or fair value through profit or loss (FVTPL). Specifically, debt investments that
are held within a business model whose objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and interest on the principal outstanding are
generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that
are held within a business model whose objective is achieved both by collecting contractual cash flows and
selling financial assets, and that have contractual terms that give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding, are measured at fair
value through other comprehensive income (FVTOCI). All other debt investments and equity investments are
measured at FVTPL at the end of subsequent accounting periods. In addition, under FRS 109, entities may
make an irrevocable election, at initial recognition, to measure an equity investment (that is not held for
trading) at FVTOCI, with only dividend income generally recognised in profit or loss.