NOTES TO FINANCIAL STATEMENTS
30 June 2015
Annual Report 2015
Karin Technology Holdings Limited
59
2.3 IMPACT OF ISSUED BUT NOT YET EFFECTIVE IFRSs
(continued)
Further information about those IFRSs that are expected to be applicable to the Group is as follows:
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Financial Instruments
which reflects all phases of the financial
instruments project and replaces IAS 39
Financial Instruments: Recognition and Measurement
and all previous
versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment,
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application permitted. Retrospective application is required, but comparative information is not compulsory. The
adoption of IFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but
no impact on the classification and measurement of the Group’s financial liabilities.
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The amendments require a full recognition of a gain or loss when the sale or contribution of assets between an
investor and its associate or joint venture constitutes a business. For a transaction involving assets that do not
constitute a business, a gain or loss resulting from the transaction is recognised in the investor’s profit or loss
only to the extent of the unrelated investor’s interest in that associate or joint venture. The amendments are to
be applied prospectively. The Group expects to adopt the amendments from 1 July 2016.
The amendments to IFRS 11 require that an acquirer of an interest in a joint operation in which the activity of
the joint operation constitutes a business must apply the relevant principles for business combinations in IFRS
3. The amendments also clarify that a previously held interest in a joint operation is not remeasured on the
acquisition of an additional interest in the same joint operation while joint control is retained. In addition, a scope
exclusion has been added to IFRS 11 to specify that the amendments do not apply when the parties sharing joint
control, including the reporting entity, are under common control of the same ultimate controlling party. The
amendments apply to both the acquisition of the initial interest in a joint operation and the acquisition of any
additional interests in the same joint operation. The amendments are not expected to have any impact on the
financial position or performance of the Group upon adoption on 1 July 2016.
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contracts with customers. Under IFRS 15 revenue is recognised at an amount that reflects the consideration to
which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles
in IFRS 15 provide a more structured approach to measuring and recognising revenue. The new revenue standard
is applicable to all entities and will supersede all current revenue recognition requirements under IFRS. Either a
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early adoption permitted. The Group is currently assessing the impact of IFRS 15 and plans to adopt the new
standard on the required effective date.
Amendments to IAS 1 include narrow-focus improvements in respect of the presentation and disclosure in
financial statements in five areas, including materiality, disaggregation and subtotals, notes structure, disclosure
of accounting policies and presentation of items of other comprehensive income arising from equity accounted
investments. The amendments further encourage entities to apply professional judgement in determining what
information to disclose and how to structure the disclosure in the financial statements. The Group expects to
adopt the amendments from 1 July 2016.
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economic benefits that are generated from operating business (of which the asset is part) rather than the economic
benefits that are consumed through the use of the asset. As a result, a revenue-based method cannot be used
to depreciate property, plant and equipment and may only be used in very limited circumstances to amortise
intangible assets. The amendments are to be applied prospectively. The amendments are not expected to have
any impact on the financial position or performance of the Group upon adoption on 1 July 2016 as the Group
has not used a revenue-based method for the calculation of depreciation of its non-current assets.
