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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2011
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.2 CHANGES IN FINANCIAL REPORTING STANDARDS AND ACCOUNTING POLICIES (cont’d)
Certain new FRS and INT FRS have been published that are mandatory for accounting periods beginning on or after
1 January 2011:
Effective for annual
periods beginning
on or after
Amendment to FRS 32 Financial Instruments: Presentation – Classification of Rights Issues 1 February 2010
INT FRS 119 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
Revised FRS 24 Related Party Disclosures 1 January 2011
Amendments to INT FRS 114 Prepayments of a Minimum Funding Requirement 1 January 2011
INT FRS 115 Agreements for the Construction of Real Estate * 1 January 2011
Improvements to FRSs issued in 2010:
– Amendments to FRS 103 Business Combinations 1 July 2010
– Amendments to FRS 107 Financial Instruments: Disclosures 1 January 2011
– Amendments to FRS 1 Presentation of Financial Statements 1 January 2011
– Transition requirements for amendments arising as a result of FRS 27 Consolidated and
Separate Financial Statements 1 July 2010
– Amendments to FRS 34 Interim Financial Reporting 1 January 2011
– Amendments to INT FRS 113 Customer Loyalty Programmes 1 January 2011
* The Group has early adopted INT FRS 115 Agreements for the Construction of Real Estate in financial year 2010.
The adoption of these standards and interpretations did not have any effect on the financial performance or position
of the Group and the Company except as disclosed below:
Revised FRS 24 Related Party Disclosures
From 1 January 2011, the Group has applied the revised FRS 24 Related Party Disclosures to identify parties that
are related to the Group and to determine the disclosures to be made on transactions and outstanding balances,
including commitments, between the Group and its related parties. The revised FRS 24 improved the definition of
a related party in order to eliminate inconsistencies and ensure symmetrical identification of relationships between
two parties.
The adoption of the revised FRS 24 affects only the disclosures made in the financial statements. There is no impact
on the financial performance and position of the Group for the current and previous financial years.