NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
146
COSCO Corporation (Singapore) Limited
39.
New or revised accounting standards and interpretations
Below are the mandatory standards, amendments and interpretations to existing standards that have been
published, and are relevant for the Group’s accounting periods beginning on or after 1 January 2015 or later
periods and which the Group has not early adopted.
FRS 24
Related Party Disclosures
(effective for annual periods beginning on or after 1 July 2014)
The standard is amended to include, as a related party, an entity that provides key management
personnel services to the reporting entity or to the parent of the reporting entity (‘the management
entity’).
The reporting entity is not required to disclose the compensation paid by the management entity to
the management entity’s employees or directors, but it is required to disclose the amounts charged
to the reporting entity by the management entity for services provided.
This amendment will not result in any changes to the Group’s accounting policies but will require
more disclosures in the financial statements.
FRS 40
Investment Property
(effective for annual periods beginning on or after 1 July 2014)
The standard is amended to clarify that FRS 40 and FRS 103 are not mutually exclusive. The
guidance in FRS 40 assists preparers to distinguish between investment property and owner-
occupied property. Preparers also need to refer to the guidance in FRS 103 to determine whether
the acquisition of an investment property is a business combination.
The Group will apply this amendment for acquisition of investment property taking place on/after
1 January 2015.
FRS 102
Share-based payment
(effective for annual periods beginning on or after 1 July 2014)
The amendment clarifies the definition of vesting condition and separately defines ‘performance
condition’ and ‘service condition’. The Group will apply this amendment from 1 January 2015, but
this is not expected to have any significant impact on the financial statements of the Group.
FRS 103
Business Combinations
(effective for annual periods beginning on or after 1 July 2014)
The standard is amended to clarify that an obligation to pay contingent consideration which meets
the definition of a financial instrument is classified as a financial liability or as equity, on the basis of
the definitions in FRS 32,
Financial instruments: Presentation
. The standard is further amended to
clarify that all non-equity contingent consideration, both financial and non-financial, is measured at
fair value at each reporting date, with changes in fair value recognised in profit and loss.
The standard is also amended to clarify that FRS 103 does not apply to the accounting for the
formation of any joint arrangement under FRS 111. The amendment also clarifies that the scope
exemption only applies in the financial statements of the joint arrangement itself.
The Group will apply this amendment for business combinations taking place on/after 1 January
2015.
FRS 108
Operating Segments
(effective for annual periods beginning on or after 1 July 2014)
The standard is amended to require disclosure of the judgements made by management in
aggregating operating segments. This includes a description of the segments which have been
aggregated and the economic indicators which have been assessed in determining that the
aggregated segments share similar economic characteristics.
The standard is further amended to require a reconciliation of segment assets to the entity’s assets
when segment assets are reported.
This amendment will not result in any changes to the Group’s accounting policies but will require
more disclosures in the financial statements.
