axiata group berhad | annual report 2015
127
2.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)
(a) Standards and amendments to published standards that are applicable to the Group and the Company that are effective (continued)
Annual Improvements 2010 – 2012 Cycle (continued)
•
Amendment to MFRS 13 ‘Fair Value Measurement’ which amended the basis of conclusions to clarify that it did not intend to remove the
ability to measure short term receivables and payables at invoice amounts where the effect of discounting is immaterial.
•
Amendment to MFRS 116 ‘Property, Plant and Equipment’ and MFRS 138 ‘Intangible Assets’ clarify how the gross carrying amount and the
accumulated depreciation are treated where an entity uses the revaluation model.
•
Amendment to MFRS 124 ‘Related Party Disclosures’ is amended to include, as a related party, an entity that provides key management
personnel services to the reporting entity or to the parent of the reporting entity. Disclosure of the amounts changed to the reporting
entity is required.
Annual Improvements 2011–2013 Cycle
•
Amendment to MFRS 3 clarifies that MFRS 3 does not apply to the accounting for the formation of any joint venture under MFRS 11 ‘Joint
Arrangements’.
•
Amendment to MFRS 13 clarifies that the portfolio exception in MFRS 13 applies to all contracts (including non-financial contracts) within
the scope of MFRS 139 ‘Financial Instruments: Recognition and Measurement’.
•
Amendment to MFRS 140 ‘Investment Property’ assists users to distinguish between investment property and owner occupied property.
However, preparers also need to consider the guidance in MFRS 3 to determine whether the acquisition of an investment property is a
business combination.
Amendments to MFRS 119 ‘Defined Benefits Plans: Employee Contributions’ applies to contributions from employees or third parties to defined
benefits plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service
only in the period in which they arise and those linked to service in more than one period. The objective of the amendment is to simplify the
accounting for contributions that are independent of the number of years of employee service. Entities with plans that require contributions that
vary with service will be required to recognise the benefit of those contributions over employee’s working lives.
The adoption of amendments to published standards did not have any material impact to the financial statements of the Group and the Company.
(b) Standards and amendments to published standards that are applicable to the Group and the Company but not yet effective
The Group and the Company will apply the new standards and amendments to standards in the following period:
(i) Financial year beginning on/after 1 January 2016
Amendment to MFRS 11 ‘Joint Arrangements’ requires an investor to apply the principles of MFRS 3 when it acquires an interest in a joint
operation that constitutes a business. The amendments are applicable to both the acquisition of the initial interest in a joint operation and
the acquisition of additional interest in the same joint operation. However, a previously held interest is not re-measured when the acquisition
of an additional interest in the same joint operation results in retaining joint control.
Amendments to MFRS 10 and MFRS 128 ‘Investments in Associates’ regarding sale or contribution of assets between an investor and its
associate or joint venture resolve a current inconsistency between MFRS 10 and MFRS 128. The accounting treatment depends on whether
the non-monetary assets sold or contributed to an associate or joint venture constitute a ‘business’. Full gain or loss shall be recognised
by the investor where the non-monetary assets constitute a ‘business’. If the assets do not meet the definition of a business, the gain or
loss is recognised by the investor to the extent of the other investors’ interests. The amendments will only apply when an investor sells or
contributes assets to its associate or joint venture. They are not intended to address accounting for the sale or contribution of assets by an
investor in a joint operation.
Amendment to MFRS 127 on ‘Equity Method in Separate Financial Statements’ allows entities to use the equity method to account for
investments in subsidiaries, joint ventures and associates in their separate financial statements.
