Cordlife Group Limited
Annual Report 2016
59
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.3
Standards issued but not effective (cont’d)
Effective for
annual periods
beginning on or
Description
after
Improvements to FRSs (November 2014)
(a)
Amendments to FRS 105
Non-current Assets Held for Sale and Discontinued
Operations
1 January 2016
(b)
Amendments to FRS 107
Financial Instruments: Disclosures
1 January 2016
(c)
Amendments to FRS 19
Employee Benefits
1 January 2016
(d)
Amendments to FRS 34
Interim Financial Reporting
1 January 2016
Amendments to FRS 110 and FRS 28
Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture
1 January 2016
Amendments to FRS 1
Disclosure Initiative
1 January 2016
Amendments to FRS 110, FRS 112 and FRS 28
Investment Entities: Applying the Consolidation
Exception
1 January 2016
FRS 7 Amendments to FRS 7:
Disclosure Initiatives
1 January 2017
FRS 12 Amendments to FRS 12:
Recognition of Deferred Tax Assets for Unrealised Losses
1 January 2017
FRS 115
Revenue from Contracts with Customers
1 January 2017
FRS 109
Financial Instruments
1 January 2018
FRS 116
Leases
1 January 2019
Except for FRS 115, FRS 109 and FRS 116, the directors expect that the adoption of the other standards and
interpretations above will have no material impact on the financial statements in the period of initial application.
The nature of the impending changes in accounting policy on adoption of FRS 115, FRS 109 and FRS 116 are
described below.
FRS 115
Revenue from Contracts with Customers
FRS 115 was issued in November 2014 and establishes a new five-step model that will apply to revenue
arising from contracts with customers. Under FRS 115, 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 FRS 115 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 FRS. Either a full or modified retrospective application is required for annual
periods beginning on or after 1 January 2017 with early adoption permitted. The Group is currently assessing
the impact of FRS 115 and plans to adopt the new standard on the required effective date.
FRS 109
Financial Instruments
In December 2014, the Accounting Standards Council (“ASC”) issued the final version of FRS 109 Financial
Instruments which reflects all phases of the financial instruments project and replaces FRS 39 Financial
Instruments: Recognition and Measurement. The standard introduces new requirements for classification and
measurement, impairment, and hedge accounting. FRS 109 is effective for annual periods beginning on or
after 1 January 2018, with early application permitted. Retrospective application is required, but comparative
information is not compulsory in the year of adoption. The adoption of FRS 109 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.
