NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
50
ANNUAL REPORT 2015/2016
Description
Effective for annual periods
beginning on or after
(b) Amendments to FRS 107 Financial Instruments: Disclosure
1 January 2016
(c) Amendments to FRS 19 Employee Benefits
1 January 2016
Amendments to FRS 110 and FRS 28
Sales or Contribution of Assets between
an Investor and its Associate or Joint venture
1 January 2016
Amendments to FRS 110, FRS 112 and FRS 28
Investment Entitles: Applying
the Consolidation Exception
1 January 2016
Amendments to FRS 1
Disclosure Initiative
1 January 2016
Amendments to FRS 7
Disclosure Initiative
1 January 2017
Amendments to FRS 12
Recognition of Deferred Tax assets for Unrealised
Losses
1 January 2017
FRS 115
Revenue from Contracts with Customers
1 January 2018
FRS 109
Financial Instruments
1 January 2018
Except for FRS 115 and FRS 109, the directors expect that the adoption of the other standards above will have no
material impact on the financial statements in the period of initial application. The nature of the impending changes
in accounting policy on adoption of FRS 115 and FRS 109 are described below.
FRS 115
Revenue from Contracts with Customers
FRS 115 establishes a five-step model that will apply to revenue arising from contracts with customers. Under FRS
115, revenue is recognised at an amount that reflects the consideration which an entity expects to be entitled in
exchange for transferring goods or services to a customer. The principles in FRS 115 provide a more structured
approach to measuring and recognising revenue when the promised goods and services are transferred to the
customer i.e. when performance obligations are satisfied.
Key issues for the Group include identifying performance obligations, accounting for contract modifications,
applying the constraint to variable consideration, evaluating significant financing components, measuring progress
toward satisfaction of a performance obligation, recognising contract cost assets and addressing disclosure
requirements.
Either a full or modified retrospective application is required for annual periods beginning on or after 1 January
2018 with early adoption permitted. The Group is currently assessing the impact of FRS 115 and plans to adopt
the new standard on the required effective date.
FRS 109
Financial Instruments
FRS 109 introduces new requirements for classification and measurement of financial assets, impairment of
financial assets and hedge accounting. Financial assets are classified according to their contractual cash flow
characteristics and the business model under which they are held. The impairment requirements in FRS 109 are
based on an expected credit loss model and replace the FRS 39 incurred loss model. Adopting the expected credit
losses requirements will require the Group to make changes to its current systems and processes.
FRS 109 is effective for annual periods beginning on or after 1 January 2018 with early application permitted.
Retrospective application is required, but comparative information is not compulsory. The Group is currently
assessing the impact of FRS 109 and plans to adopt the standard on the required effective date.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3
Standards issued but not yet effective (cont’d)
