NOTES TO FINANCIAL STATEMENTS
December 31, 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
At the date of authorisation of these financial statements, the following new / revised FRSs, INT FRS and amendments
to FRS that are relevant to the Group and the Company were issued but not effective:
r
'34
Financial Instruments
1
r
'34
Revenue from Contracts with Customers
1
r
"NFOENFOUT UP '34
Presentation of Financial Statements: Disclosure Initiative
2
1
Applies to annual periods beginning on or after January 1, 2018, with early application permitted.
2
Applies to annual periods beginning on or after January 1, 2016, with early application permitted.
Consequential amendments were also made to various standards as a result of these new / revised standards.
The management anticipates that the adoption of the above FRSs, INT FRS and amendments to FRS in future periods
will not have a material impact on the financial statements of the Group and the Company in the period of their
initial adoption except for the following:
FRS 109
Financial Instruments
FRS 109 was issued in December 2014 to replace FRS 39
Financial Instruments: Recognition and Measurement
and
introduced new requirements for (i) the classification and measurement of financial assets and financial liabilities (ii)
general hedge accounting (iii) impairment requirements for financial assets.
Key requirements of FRS 109:
r
"MM SFDPHOJTFE êOBODJBM BTTFUT UIBU BSF XJUIJO UIF TDPQF PG '34 BSF OPX SFRVJSFE UP CF TVCTFRVFOUMZ
measured at amortised cost or fair value through profit or loss (FVTPL). Specifically, debt investments
that are held within a business model whose objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and interest on the principal outstanding are
generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that are
held within a business model whose objective is achieved both by collecting contractual cash flows and selling
financial assets, and that have contractual terms that give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding, are measured at fair value through
other comprehensive income (FVTOCI). All other debt investments and equity investments are measured
at FVTPL at the end of subsequent accounting periods. In addition, under FRS 109, entities may make an
irrevocable election, at initial recognition, to measure an equity investment (that is not held for trading) at
FVTOCI, with only dividend income generally recognised in profit or loss.
r
8JUI TPNF FYDFQUJPOT êOBODJBM MJBCJMJUJFT BSF HFOFSBMMZ TVCTFRVFOUMZ NFBTVSFE BU BNPSUJTFE DPTU 8JUI
regard to the measurement of financial liabilities designated as at FVTPL, FRS 109 requires that the amount
of change in fair value of the financial liability that is attributable to changes in the credit risk of that liability
is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s
credit risk in other comprehensive income would create or enlarge an accounting mismatch to profit or
loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to
profit or loss.
r
*O SFMBUJPO UP UIF JNQBJSNFOU PG êOBODJBM BTTFUT '34 SFRVJSFT BO FYQFDUFE DSFEJU MPTT NPEFM BT PQQPTFE
to an incurred credit loss model under FRS 39. The expected credit loss model requires an entity to account
for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes
in credit risk since initial recognition. In other words, it is no longer necessary for a credit event to have
occurred before credit losses are recognised.
YANLORD LAND GROUP LIMITED
ANNUAL REPORT 2015
66
