152 / 198
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
150
10. Accounting framework
continued
10.3 Standards, amendments and interpretations not yet effective continued
Amendments to IAS 27 –
Separate financial statements – on equity accounting
In this amendment the IASB has restored the option to use the equity method to account for investments in
subsidiaries, joint ventures and associates in an entity’s separate financial statements.
This statement is effective for periods beginning on or after 1 January 2016 and is not applicable to the Group. The Company
does not believe the statement will have a significant impact, given that the Company does intend applying this option.
IFRS 15 –
Revenue From Contracts With Customers
This statement establishes principles for reporting useful information to users of the financial statements about the
nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers.
This statement is effective for periods beginning on or after 1 January 2017. The Group is currently considering the
impact on the consolidated financial statements.
Annual improvements project
The September 2014, the IASB issued Annual improvements to IFRS 2012 – 2014 Cycle, which contains five
amendments to four standards, excluding consequential amendments. The amendments are effective for annual
periods beginning on or after 1 January 2016.
IFRS 5 –
Non-current Assets Held-for-sale and Discontinued Operations
This is an amendment to the changes in methods of disposal:
Assets (or disposal groups) are generally disposed of either through sale or through distribution to owners. The
amendment to IFRS 5 clarifies that changing from one of these disposal methods to the other should not be
considered to be a new plan of disposal, rather it is a continuation of the original plan. There is therefore no
interruption of the application of the requirements in IFRS 5.
The amendment also clarifies that changing the disposal method does not change the date of classification.
IFRS 7 –
Financial Instruments: Disclosures
Applicability of the offsetting disclosures to condensed interim financial statements.
The amendment removes the phrase “and interim periods within those annual periods” from paragraph 44R,
clarifying that these IFRS 7 disclosures are not required in the condensed interim financial report. However, the Board
noted that IAS 34 requires an entity to disclose an explanation of events and transactions that are significant to an
understanding of the changes in financial position and performance of the entity since the end of the last annual
reporting period’. Therefore, if the IFRS 7 disclosures provide a significant update to the information reported in the
most recent annual report, the Board would expect the disclosures to be included in the entity’s condensed interim
financial report.
IFRS 7 –
Financial Instruments: Disclosures
Servicing contracts – The amendment clarifies that a servicing contract that includes a fee can constitute continuing
involvement in a financial asset. An entity must assess the nature of the fee and arrangement against the guidance for
continuing involvement in paragraphs IFRS 7.B30 and IFRS 7.42C in order to assess whether the disclosures are required.
IAS 34 –
Interim Financial Reporting
Disclosure of information “elsewhere in the interim financial report”
The amendment states that the required interim disclosures must either be in the interim financial statements or
incorporated by cross-reference between the interim financial statements and wherever they are included within
the greater interim financial report (e.g, in the management commentary or risk report).
The Board specified that the other information within the interim financial report must be available to users on
the same terms as the interim financial statements and at the same time. If users do not have access to the other
information in this manner, then the interim financial report is incomplete.
Management is currently considering the effect of the changes.