Page 77 - Neal and Massy Holdings Annual Report 2012

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2 Summary Of Significant Accounting Policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRS”) and IFRIC interpretations. The consolidated financial statements have been prepared under the historical cost convention
as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities (including derivative
instruments) at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated
financial statements are disclosed in Note 4.
a) Standards, amendments and interpretations adopted by the Group
The Group has adopted the following new and amended standards and interpretations as of October 1, 2011:
• Amendments to IFRS 7, ‘Financial instruments: disclosures’ on transfers of assets (effective July 1, 2011). These
amendments arise from the IASB’s review of off- balance-sheet activities. The amendments will promote transparency
in the reporting of transfer transactions and improve users’ understanding of the risk exposures relating to transfers of
financial assets and the effect of those risks on an entity’s financial position, particularly those involving securitisation
of financial assets.
• Annual improvements to IFRSs 2010 (effective January 1, 2011). This set of amendments includes changes to six
standards and one IFRIC:
• IFRS 1, ‘First time adoption’;
• IFRS 3, ‘Business combinations’;
• IFRS 7, ‘Financial instruments; Disclosures’;
• IAS 1, ‘Presentation of financial statements’;
• IAS 27, ‘Separate financial statement’;
• IAS 34, ‘Interim financial reporting’;
• IFRIC 13,’Customer loyalty programmes’.
• Amendment to IFRIC 14, ‘Prepayments of a minimum funding requirement’ (effective January 1, 2011). This amendment
will have a limited impact, as it applies only to entities that are required to make minimum funding contributions to
a defined benefit pension plan. It removes an unintended consequence of IFRIC 14, ‘IAS 19 – The limit on a defined
benefit asset, minimum funding requirements and their interaction’, relating to voluntary pension pre-payments when
there is a minimum funding requirement.