NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3 FUTURE CHANGES IN FINANCIAL REPORTING STANDARDS (CONT’D)
Amendments to FRS 111 Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations
The amendments to FRS 111 require that a joint operator which acquires an interest in a joint operation which constitute
a business to apply the relevant FRS 103 Business Combinations principles for business combinations accounting. The
amendments also clarify that a previously held interest in a joint operation is not remeasured on the acquisition of an
additional interest in the same joint operation while joint control is retained. In addition, a scope exclusion has been added
to FRS 111 to specify that the amendments do not apply when the parties sharing joint control, including the reporting
entity, are under common control of the same ultimate controlling party.
These amendments are to be applied prospectively for annual periods beginning on or after 1 January 2016. The Group
is in the process of reviewing the implications of this standard.
Amendments to FRS 1: Disclosure Initiatives
The amendments to FRS 1 include narrow-focus improvements in the following five areas:
– Materiality
– Disaggregation and subtotals
– Notes structure
– Disclosure of accounting policies
– Presentation of items of other comprehensive income arising from equity accounted investments
The Group is in the process of reviewing the implications of this standard.
Amendments to FRS 16 and FRS 38: Clarification of Acceptable Methods of Depreciation and Amortisation
The amendments clarify that revenue reflects a pattern of economic benefits that are generated from operating a business
(of which the asset is part) rather than the economic benefits that are consumed through the use of an asset. As a result, a
revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in very limited
circumstances to amortise intangible assets.
The amendments are effective prospectively for annual periods beginning on or after 1 January 2016.
These amendments are not expected to have any impact to the Group as the Group has not used a revenue-based method
to depreciate its non-current assets.
Amendments to FRS 27: Equity Method in Separate Financial Statements
The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures
and associate in their separate financial statements. The amendments are effective for annual periods beginning on or
after 1 January 2016. The Group is in the process of reviewing the implications of this standard.
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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
