Page 79 - Neal and Massy Holdings Annual Report 2012

77 forward focused
2 Summary Of Significant Accounting Policies (continued)
2.1 Basis of preparation (continued)
c) Standards, amendments and interpretations that are not yet effective for the financial year beginning October
1, 2011 and are not early adopted by the Group. The impact of the following standards has not yet been
evaluated: (continued)
liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option
is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in OCI
rather than the income statement, unless this creates an accounting mismatch. This change will mainly affect financial
institutions.
• IFRS 10, ‘Consolidated financial statements’ (effective from periods beginning on or after January 1, 2012). This
standard builds on existing principles by identifying the concept of control as the determining factor in whether an
entity should be included within the consolidated financial statements. The standard provides additional guidance to
assist in determining control where this is difficult to assess.
• IFRS 11, ‘Joint arrangements’ (effective from periods on or after January 1, 2013). This standard provides for a more
realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its
legal form. There are two types of joint arrangement: joint operations and joint ventures. Joint operations arise where
a joint operator has rights to the assets and obligation relating to the arrangement and hence accounts for its interest
in assets, liabilities, revenue and expenses. Joint ventures arise where the joint operator has rights to the net assets
of the arrangement and hence equity accounts for its interest. Proportional consolidation of joint ventures is no longer
allowed.
• IFRS 12, ‘Disclosures of interests in other entities’ (effective from periods beginning on or after January 1, 2013). This
standard includes the disclosure requirements for all forms of interests in other entities, including joint arrangements,
associates, special purpose vehicles and other off-balance-sheet vehicles.
• Amendments to IFRSs 10, 11 and 12 on transition guidance (effective from periods beginning on or after January 1,
2013). These amendments also provide additional transition relief in IFRSs 10, 11 and 12, limiting the requirement
to provide adjusted comparative information to only the preceding comparative period. For disclosures related to
unconsolidated structured entities, the amendments will remove the requirement to present comparative information
for periods before IFRS 12 is first applied.
• IFRS 13, ‘Fair value measurement’ (effective from periods beginning on or after January 1, 2013). This standard aims
to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair
value measurement and disclosure requirements for use across IFRSs. The requirements, which are largely aligned