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STAMFORD LAND CORPORATION LTD
Notes to the Financial Statements
2 Summary of Significant Accounting Policies (cont’d)
Changes and Adoption of New/Revised Financial Reporting Standards (Cont’d)
The adoption of FRS 24 (2010) has resulted in additional parties being identifed as related to
the Group. Transactions, including commitments, with these related parties for the current and
comparative years have been disclosed accordingly in Notes 5 and 11 to the fnancial statements.
The adoption of FRS 24 (2010) affects only the disclosures made in the fnancial statements.
There is no fnancial effect on the results and fnancial position of the Group for the current and
previous fnancial years. Accordingly, the adoption of FRS 24 (2010) has no impact on earnings
per share.
INT FRS 115 which is effective for fnancial period commencing from 1 January 2011 clarifes
when revenue and related expenses from a sale of a real estate unit should be recognised if an
agreement between a developer and a buyer is reached before the construction of the real estate
is completed. INT FRS 115 clarifes that contracts which do not classify as construction contracts
in accordance with FRS 11 can only be accounted for under the percentage of completion method
if the entity continuously transfers to the buyer control and the signifcant risks and rewards of
ownership of the work-in-progress in its current state as construction progresses. The Group’s
current accounting policy for all residential property sales is to recognise revenue and expenses
under the completion method based on the evaluation criteria set out in INT FRS 115.
The accounting policies used by the Group have been applied consistently to all periods
presented in these fnancial statements, and have been applied consistently by Group entities.
New Standards and Interpretations Not Adopted
The Group has not applied the new/revised accounting standards (including its consequential
amendments) and interpretations that have been issued as of the date of the statements of
fnancial position but are not yet effective. The initial application of these standards and
interpretations is not expected to have any material impact on the Group’s fnancial statements.
The Group has not considered the impact of accounting standards issued after the date of the
statements of fnancial position.