153
COSCO Corporation (Singapore) Limited
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
Financial Statements
37. New or revised accounting standards and interpretations
(continued)
z
FRS 111
Joint Arrangements
(effective for annual periods beginning on or after 1 January 2016)
This amendment provides new guidance on how to account for the acquisition of an interest in a
joint venture operation that constitutes a business. The amendments require an investor to apply
the principles of business combination accounting when it acquires an interest in a joint operation
that constitutes a ‘business’. The amendments are applicable to both the acquisition of the initial
interest in a joint operation and the acquisition of additional interest in the same joint operation.
However, a previously held interest is not re-measured when the acquisition of an additional
interest in the same joint operation results in retaining joint control.
This amendment is not expected to have any significant impact on the financial statements of the
Group.
z
FRS 110
Consolidated financial statements
and FRS 28
Investments in associates and joint
ventures
(effective for annual periods beginning on or after 1 January 2016)
These amendments address an inconsistency between FRS 110 and FRS 28 in the sale or
contribution of assets between an investor and its associate or joint venture. A full gain or loss
is recognised when a transaction involves a business. A partial gain or loss is recognised when
a transaction involves assets that do not constitute a business, even if those assets are in a
subsidiary.
This amendment is not expected to have any significant impact on the financial statements of the
Group.
z
FRS 1
Presentation of financial statements
(effective for annual periods beginning on or after 1
January 2016)
The amendment clarifies guidance in FRS 1 on materiality and aggregation, the presentation of
subtotals, the structure of financial statements and the disclosure of accounting policies.
This amendment is not expected to have any significant impact on the financial statements of the
Group.
z
FRS 115
Revenue from contracts with customers
(effective for annual periods beginning on or
after 1 January 2017)
This is the converged standard on revenue recognition. It replaces FRS 11 Construction
contracts, FRS 18 Revenue, and related interpretations. Revenue is recognised when a customer
obtains control of a good or service. A customer obtains control when it has the ability to direct
the use of and obtain the benefits from the good or service. The core principle of FRS 115 is that
an entity recognises revenue to depict the transfer of promised goods or services to customers in
an amount that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services. An entity recognises revenue in accordance with that core principle
by applying the following steps:
- Step 1 : Identify the contract(s) with a customer
- Step 2 : Identify the performance obligations in the contract
- Step 3 : Determine the transaction price
- Step 4 : Allocate the transaction price to the performance obligations in the contract
- Step 5 : Recognise revenue when (or as) the entity satisfies a performance obligation
