154
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 115
Revenue from contracts with customers
(effective for annual periods beginning on or
after 1 January 2017) (continued)
FRS 115 also includes a cohesive set of disclosure requirements that will result in an entity
providing users of financial statements with comprehensive information about the nature,
amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with
customers.
The Group is assessing the impact of the standard on the financial statements.
z
FRS 109
Financial instruments
(effective for annual periods beginning on or after 1 January 2018)
The complete version of FRS 109 replaces most of the guidance in FRS 39. FRS 109 retains but
simplifies the mixed measurement model and establishes three primary measurement categories
for financial assets: amortised cost, fair value through Other Comprehensive Income (OCI) and
fair value through Profit or Loss. The basis of classification depends on the entity’s business
model and the contractual cash flow characteristics of the financial asset. Investments in equity
instruments are required to be measured at fair value through profit or loss with the irrevocable
option at inception to present changes in fair value in OCI. There is now a new expected credit
losses model that replaces the incurred loss impairment model used in FRS 39.
For financial liabilities there were no changes to classification and measurement except for the
recognition of changes in own credit risk in other comprehensive income, for liabilities designated
at fair value, through profit or loss. FRS 109 relaxes the requirements for hedge effectiveness by
replacing the bright line hedge effectiveness tests. It requires an economic relationship between
the hedged item and hedging instrument and for the ‘hedged ratio’ to be the same as the one
management actually use for risk management purposes. Contemporaneous documentation is
still required but is different to that currently prepared under FRS 39.
The Group is assessing the impact of the standard on the financial statements.
38. Authorisation of financial statements
These financial statements were authorised for issue in accordance with a resolution of the Board of
Directors of COSCO Corporation (Singapore) Limited on 4 March 2016.
