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ANNUAL REPORT 2014/2015
NOTES TO THE FINANCIAL STATEMENTS
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
New Standards and Interpretations Not Adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 April 2014, and have not been applied in preparing these financial statements. The Group
does not plan to adopt these standards early.
•
FRS 102 Share-based Payment (effective for annual periods beginning on or after 1 July 2014)
The amendment clarifies the definition of vesting condition and separately defines ‘performance
condition’ and ‘service condition’. The Group will apply this amendment from 1 April 2015, but this is not
expected to have any significant impact on the financial statements of the Group.
•
FRS 103 Business Combinations (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to clarify that an obligation to pay contingent consideration which meets the
definition of a financial instrument is classified as a financial liability or as equity, on the basis of the
definitions in FRS 32 Financial instruments: Presentation. The standard is further amended to clarify
that all non-equity contingent consideration, both financial and non-financial, is measured at fair value
at each reporting date, with changes in fair value recognised in profit and loss.
The standard is also amended to clarify that FRS 103 does not apply to the accounting for the formation
of any joint arrangement under FRS 111. The amendment also clarifies that the scope exemption only
applies in the financial statements of the joint arrangement itself. The Group will apply this amendment
for business combinations taking place on/after 1 April 2015.
•
FRS 40 Investment Property (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to clarify that FRS 40 and FRS 103 are not mutually exclusive. The guidance
in FRS 40 assists preparers to distinguish between investment property and owner-occupied property.
The Group will apply this amendment for acquisition of investment property taking place on/after 1 April
2015.
•
FRS 108 Operating Segments (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to require disclosure of the judgements made by management in aggregating
operating segments. This includes a description of the segments which have been aggregated and the
economic indicators which have been assessed in determining that the aggregated segments share
similar economic characteristics. The standard is further amended to require a reconciliation of segment
assets to the entity’s assets when segment assets are reported. This amendment will not result in any
changes to the Group’s accounting policies but will require more disclosures in the financial statements.
