FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 193 2 BASIS OF PREPARATION (cont’d.) (iii) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and the Company but not yet effective and have not yet been early adopted: (Cont’d.) Effective for annual periods beginning on or after 1 July 2014 with earlier application permitted (Cont’d.) • Amendments to FRS 8 “Operating Segments” (effective on or after 1 July 2014) requires the disclosure of judgements made in applying the aggregation criteria to operating segments. This includes a brief description of the operating segments that have been aggregated and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics. It is also clarifies that reconciliation of the total reportable segments’ assets to the entity’s assets is required if that amount is regularly provided to the chief operating decision maker. • Amendments to FRS 13 “Fair Value Measurement” (effective on or after 1 July 2014) relates to the IASB’s Basis for Conclusions which is not an integral part of the Standard. The Basis for Conclusions clarifies that when IASB issued IFRS 13, it did not remove the practical ability to measure short-term receivables and payables with no stated interest rate at invoice amounts without discounting, if the effect of discounting is immaterial. • Amendments to FRS 116 “Property, Plant and Equipment” (effective on or after 1 July 2014) clarifies the accounting for the accumulated depreciation when an asset is revalued. It clarifies that the gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the asset and the accumulated depreciation is calculated as the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses. • Amendments to FRS 138 “Intangible Assets” (effective on or after 1 July 2014) clarifies the accounting for the accumulated amortisation when an asset is revalued. It clarifies that the gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the asset and the accumulated amortisation is calculated as the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses. • Amendments to FRS 124 “Related Party Disclosures” (effective on or after 1 July 2014) extends the definition of ‘related party’ to include an entity, or any member of a group of which it is a part, that provides key management personnel services to the reporting entity or to the parent of the reporting entity. The Group and the Company will apply the above standards from the financial period beginning on 1 July 2014. The effects of the above standard are currently being assessed by the Directors. Effective date yet to be determined by Malaysian Accounting Standards Board • FRS 9 “Financial Instruments: Classification and Measurement of Financial Assets and Financial Liabilities” (effective date yet to be determined by Malaysian Accounting Standards Board) replaces the parts of FRS 139 that relate to the classification and measurement of financial instruments. FRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the FRS 139 requirements. 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 other comprehensive income rather than the income statement, unless this creates an accounting mismatch. The Group is yet to assess FRS 9’s full impact. The Group will also consider the impact of the remaining phases of FRS 9 when completed by the Board. The Group and the Company will apply this standard when it is determined by Malaysian Accounting Standards Board. The effects of the above standard are currently being assessed by the Directors.