NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
56
2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
The Group has adopted the following revised standards and new interpretation for the first time in the financial
statements for the financial year ended 30 June 2015.
Amendments to IFRS 10,
Investment Entities
IFRS 12 and IAS 27
Amendments to IAS 19
Defined Benefit Plans: Employee Contributions
Amendments to IAS 32
Offsetting Financial Assets and Financial Liabilities
Amendments to IAS 39
Novation of Derivatives and Continuation of Hedge Accounting
IFRIC 21
Levies
Annual Improvements
Amendments to a number of IFRSs
2010-2012 Cycle
Annual Improvements
Amendments to a number of IFRSs
2011-2013 Cycle
Except for the amendment to IFRS 1 included in
Annual Improvements
2011-2013 Cycle
which is only relevant
to an entity’s first IFRS financial statements, the nature and the impact of each amendment and interpretation
is described below:
(a)
Amendments to IFRS 10 include a definition of an investment entity and provide an exception to the
consolidation requirement for entities that meet the definition of an investment entity. Investment entities
are required to account for subsidiaries at fair value through profit or loss rather than consolidate them.
Consequential amendments were made to IFRS 12 and IAS 27. The amendments to IFRS 12 also set out
the disclosure requirements for investment entities. The amendments have had no impact on the Group
as the Company does not qualify as an investment entity as defined in IFRS 10.
(b)
The IAS 19 Amendments requires an entity to consider contributions from employees or third parties when
accounting for defined benefit plans. Where the contributions are linked to service, they should be attributed
to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions
is independent of the number of years of service, an entity is permitted to recognise such contributions as a
reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions
to the periods of service. The amendments have had no impact on the Group as none of the entities within
the Group has defined benefit plans with contributions from employees or third parties.
(c)
The IAS 32 Amendments clarify the meaning of “currently has a legally enforceable right to set off”
for offsetting financial assets and financial liabilities. The amendments also clarify the application of the
offsetting criteria in IAS 32 to settlement systems (such as central clearing house systems) which apply
gross settlement mechanisms that are not simultaneous. The amendments have had no impact on the
Group as the Group does not have any offsetting arrangement.
(d)
The IAS 39 Amendments provide an exception to the requirement of discontinuing hedge accounting in
situations where over-the-counter derivatives designated in hedging relationships are directly or indirectly,
novated to a central counterparty as a consequence of laws or regulations, or the introduction of laws or
regulations. For continuance of hedge accounting under this exception, all of the following criteria must
be met: (i) the novations must arise as a consequence of laws or regulations, or the introduction of laws
or regulations; (ii) the parties to the hedging instrument agree that one or more clearing counterparties
replace their original counterparty to become the new counterparty to each of the parties; and (iii) the
novations do not result in changes to the terms of the original derivative other than changes directly
attributable to the change in counterparty to achieve clearing. The amendments have had no impact on
the Group as the Group has not novated any derivatives during the current and prior years.
