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40.
ACCOUNTING STANDARDS AND INTERPRETATIONS NOT EFFECTIVE AT JUNE 30 2017
A number of new standards, amendments to standards and interpretations are not yet effective for the year ended June 30 2017. These
include the following standards and interpretations and amendments to standards that are applicable to the business of the group, and
have not been applied in preparing these financial statements:
Standard/
interpretation
Description
Reporting period
beginning on or after
IFRS 9
Financial
Instruments
The amendments affect the classification, measurement and derecognition of
financial assets and financial liabilities. The amendment will be adopted by the
group for its financial reporting period ending after the date the statement comes
into effect. The group does not expect a significant impact from the adoption of
this statement.
January 1 2018
IFRS 15
Revenue
from Contracts from
Customers
This new standard that 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. 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.
The amendment will be adopted by the group for its financial reporting period
ending after the date the statement comes into effect. The group does not expect
a significant impact from the adoption of this standard due to the group not being
involved in material multiple-element arrangements with customers. The majority
of the group’s revenue is earned through the sale of goods relating to frozen,
ambient, chilled and other non-food-related products.
January 1 2018
IFRS 16
Leases
IFRS 16 sets out the principles for the recognition, measurement, presentation
and disclosure of leases for both parties to a contract, ie the customer (lessee)
and the supplier (lessor). IFRS 16 replaces the previous leases standard, IAS 17
Leases
, and related interpretations. IFRS 16 has one model for lessees which will
result in almost all leases being recorded in the statement of financial position. No
significant changes have been included for lessors.
The group does not intend on early adopting IFRS 16. IFRS 16 will be adopted
for the group for the year ending June 30 2020.
Management’s initial assessment of IFRS 16 is that it will have an impact on the
following significant areas (but not limited to):
■
■
an overall increase in the group’s net debt, debt /equity ratio and total assets
due to inclusion of the lease liability and lease right-of-use asset on the
statement of financial position;
■
■
higher earnings before interest and taxation due to the expected fair values
of the group’s leasehold properties being higher than the estimated carrying
values and hence no depreciation will be effected; and
■
■
higher finance charges and lower trading interest cover levels due to the
finance element of the current lease charge being moved to the finance
charges line on the statement of profit or loss.
January 1 2019
The group does not currently believe the adoption of the following pronouncements will have a material impact on its results, financial
position or cash flows:
Amendments to IFRS 2
Share-based Payment
, classification and measurement of share-based payment transactions effective for annual
periods beginning on or after January 1 2018.
Amendments to IFRS 4
Insurance Contracts
, applying IFRS 9
Financial Instruments
with IFRS 4
Insurance Contracts
effective for annual
periods beginning on or after January 1 2018.
Amendment to IAS 28
Investments in Associates and Joint Ventures
(part of Improvements to IFRS 2014 to 2016 Cycle), effective for
annual periods beginning on or after January 1 2018.
IFRIC 22
Foreign Currency Transactions and Advance Consideration
, effective for annual periods beginning on or after January 1 2018.
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
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