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| Bidcorp Limited Annual integrated report 2016
39.
ACCOUNTING STANDARDS AND INTERPRETATIONS NOT EFFECTIVE AT JUNE 30 2016
Standard/interpretation
Description
Reporting period
beginning on or after
IFRS 9
Financial Instruments
A final version of IFRS 9 has been issued which replaces IAS 39
Financial
Instruments: Recognition and Measurement
. The completed standard comprises
guidance on classification and measurement, impairment hedge accounting and
derecognition.
January 1 2018
The statement introduces a new approach to the classification of financial
assets, which is driven by the business model in which the asset is held and
their cash flow characteristics. A new business model was introduced which
does allow certain financial assets to be categorised as “fair value through other
comprehensive income” in certain circumstances. The requirements for financial
liabilities are mostly carried forward unchanged from IAS 39.
Changes have been made to the fair value option for financial liabilities to address
the issue of own credit risk.
The new model introduces a single impairment model being applied to all financial
instruments, as well as an “expected credit loss” model for the measurement of
financial assets.
The statement contains a new model for hedge accounting that aligns the
accounting treatment with the risk management activities of an entity, in addition
enhanced disclosures will provide better information about risk management and
the effect of hedge accounting on the financial statements.
It also carries forward the derecognition requirements of financial assets and
liabilities from IAS 39.
IFRS 10
Consolidated
Financial Statements,
IFRS 12
Disclosure of Interests
in Other Entities
and
IAS 28
Investments in
Associates and Joint Ventures
Applying the consolidation exception: amendments to IFRS 10, IFRS 12
and IAS 28 to introduce clarifications to the requirements when accounting
for investment entities. The amendments also provide relief in particular
circumstances, which will reduce the costs of applying the standards.
January 1 2016
IFRS 10
Consolidated Financial
Statements
and
IAS 28
Investments in
Associates and Joint Ventures
Sale or contribution of assets between an investor and its associate or joint
venture: an amendment to address an acknowledged inconsistency between
the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or
contribution of assets between an investor and its associate or joint venture.
January 1 2016
IFRS 11
Joint Arrangements
Amendments adding new guidance on how to account for the acquisition of
an interest in a joint operation that constitutes a business which specify the
appropriate accounting treatment for such acquisitions.
January 1 2016
IFRS 15
Revenue from
Contracts from Customers
This new standard requires entities to recognise revenue to depict the transfer
of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for
those goods or services. This core principle is achieved through a five-step
methodology that is required to be applied to all contracts with customers.
January 1 2018
The new standard will also result in enhanced disclosures about revenue, provide
guidance for transactions that were not previously addressed comprehensively
and improve guidance for multiple-element arrangements.
Notes to the consolidated financial statements
for the year ended June 30