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33. New or revised accounting
standards and interpretations
Below are the mandatory standards, amendments and
interpretations to existing standards that have been
published and are relevant for the Group’s accounting
periods beginning on or after 1 April 2014 or later periods:
a) FRS 110 Consolidated Financial Statements and
revised FRS 27 Separate Financial Statements
(effective for annual periods beginning on or after
1 January 2014)
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 signifcant
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 with a group. The revised
FRS 27 was amended to address accounting for
subsidiaries, jointly controlled entities and associates
in separate fnancial statements.
The Group has reassessed its investments in
accordance with the new defnition of control.
Based on the Group’s assessment as at 31 March
2014, the Group does not expect the adoption of
FRS 110 will have any signifcant impact on the
fnancial statements of the Group.
b) FRS 111 Joint Arrangements and Revised FRS
28 Investments in Associates and Joint venture
(effective for annual periods beginning on or after
1 January 2014)
FRS 111 classifes 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 classifcation 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
investment in joint ventures in addition
to associates.
As the Group does not have any joint arrangements,
the implementation of FRS 111 in April 2014 will not
have any impact on the fnancial position of
the Group.
c) FRS 112 Disclosure of Interests in Other Entities
(effective for annual periods beginning on or after
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 fnancial statements to evaluate the nature and
risks associated with its interests in other entities
and the effects of those interests on its fnancial
statements. As this is a disclosure standard, it
will have no impact on the fnancial position and
fnancial performance of the Group when adopted
in April 2014.
d) Amendments to FRS 32 Offsetting Financial Assets
and Financial Liabilities (effective for annual periods
beginning on or after 1 January 2014)
The amendments to FRS 32 clarify that rights
of set-off must not only be legally enforceable
in the normal course of business, but must also
not contingent on a future event and must be
enforceable in the event of bankruptcy or insolvency
of all the counterparties to the contract. The Group
currently offsets certain balances with the same
counterparty as the Group has legal rights to set
off the amounts and intends to settle on a net basis.
The adoption of the amendments will not result in
substantial changes to the fnancial position of
the Group.
e) Amendments to FRS 36 Recoverable Amount
Disclosures for Non-fnancial Assets
When FRS 113 Fair Value Measurement was
issued, FRS 36 Impairment of Assets was amended
to require the disclosure of information about
the recoverable amount of impaired assets if
that amount is based on fair value less costs of
disposal. However, the unintended result of those
amendments were that an entity would instead be
required to disclose the recoverable amount for each
cash-generating unit for which the carrying amount
For the fnancial year ended 31 March 2014
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