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gains on property, plant and equipment under the revaluation model). The tax effects recognised for the OCI
items would also be captured in the respective grouping, although there is a choice to present OCI items
before tax or net of tax.
Changes arising from these amendments to FRS 1 will take effect from financial years beginning on or after
1 July 2012, with full retrospective application.
When the Group adopts the amendments, it will have to present revaluation gains on property, plant and
equipment and the corresponding tax effects separately from other OCI items that might be recycled to
profit or loss.
Amendments to FRS 19 Employee Benefits
The amendments to FRS 19 change the accounting for defined benefit plans and termination benefits. The
most significant change relates to the accounting for changes in defined benefit obligations and plan assets.
The amendments require the recognition of changes in defined benefit obligations and in fair value of plan
assets when they occur, hence eliminating the ‘corridor approach’ permitted under the previous version of
FRS 19 and accelerating the recognition of past service costs. The amendments require all actuarial gains
and losses to be recognised immediately through other comprehensive income so that the net pension asset
or liability recognised in the consolidated statement of financial position to reflects the full value of the plan
deficit or surplus.
The amendments to FRS 19 are effective for annual periods beginning on or after 1 January 2013 and
require retrospective application with certain exceptions. The Group anticipates that the application of the
amendments to FRS 19 will not have a material effect on the financial statements. The unrecognised net
actuarial gain at 31 December 2012 was $128,000.
FRS 112 Disclosure of Interests in Other Entities
FRS 112 requires an entity to provide more extensive disclosures regarding the nature of and risks associated
with its interest in subsidiaries, associates, joint arrangements and unconsolidated structured entities.
FRS 112 will take effect from financial years beginning on or after 1 January 2014, and the Group is currently
estimating extent of additional disclosures needed.
FRS 113 Fair Value Measurement
FRS 113 is a single new Standard that applies to both financial and non-financial items. It replaces the guidance
on fair value measurement and related disclosures in other Standards, with the exception of measurement
dealt with under FRS 102 Share-based Payment, FRS 17 Leases, net realisable value in FRS 2 Inventories
and value-in-use in FRS 36 Impairment of Assets.
FRS 113 provides a common fair value definition and hierarchy applicable to the fair value measurement of
assets, liabilities, and an entity’s own equity instruments within its scope, but does not change the requirements
in other Standards regarding which items should be measured or disclosed at fair value.
The disclosure requirements in FRS 113 are more extensive than those required in the current standards.
For example, quantitative and qualitative disclosures based on the three-level fair value hierarchy currently
required for financial instruments only under FRS 107 Financial Instruments: Disclosures will be extended
by FRS 113 to cover all assets and liabilities within its scope.
FRS 113 will be effective prospectively from annual periods beginning on or after 1 January 2013. Comparative
information is not required for periods before initial application.
NOTES TO FINANCIAL STATEMENTS
31 December 2012