Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(r)
New standards and interpretations not adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 April 2015, and have not been applied in preparing these financial statements.
These new standards include, among others, FRS 115
Revenue from contracts with customers
and FRS 109
Financial Instruments
which are mandatory for adoption by the Group on 1 April 2018.
•
FRS 115 establishes a comprehensive framework for determining whether, how much and when revenue
is recognised. It also introduces new cost guidance which requires certain costs of obtaining and fulfilling
contracts to be recognised as separate assets when specified criteria are met. When effective, FRS 115
replaces existing revenue recognition guidance, including FRS 18
Revenue
, FRS 11
Construction Contracts
,
INT FRS 113
Customer Loyalty Programmes
, INT FRS 115
Agreements for the Construction of Real Estate
,
INT FRS 118
Transfers of Assets from Customers
and INT FRS 31
Revenue – Barter Transactions Involving
Advertising Services
.
•
FRS 109 replaces most of the existing guidance in FRS 39
Financial Instruments: Recognition and
Measurement
. It includes revised guidance on classification and measurement of financial instruments,
a new expected credit loss model for calculating impairment on financial assets, and new general hedge
accounting requirements.
As FRS 115 and FRS 109, when effective, will change the existing accounting standards and guidance applied by
the Group and the Trust in accounting for revenue and financial instruments, these standards are expected to be
relevant to the Group and the Trust.
In addition, Singapore-incorporated companies listed on the SGX-ST will apply a new financial reporting framework
identical to the International Financial Reporting Standards (“IFRS”) for financial year commencing 1 January 2018
onwards. Singapore-incorporated companies listed on SGX-ST will have to assess the impact of IFRS 1: First-time
adoption of IFRS when transitioning to the new reporting framework. The Manager is currently assessing the
potential impact of adopting these new standards and interpretations and the new financial reporting framework,
on the financial statements of the Group and the Trust.
.167
A-REIT ANNUAL REPORT
2015/2016
