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1. Accounting policies and presentation of annual financial statements
continued
1.25 New standards and interpretations
continued
IFRS 9
Financial Instruments
continued
A new chapter has been added to IFRS 9 on hedge accounting, substantially overhauling previous accounting requirements. The
new requirements look to align hedge accounting more closely with entities’ risk management activities by:
Q
Increasing the eligibility of both hedged items and hedging instruments
Q
Introducing a more principles-based approach to assessing hedge effectiveness
The effective date of the standard is for years beginning on or after 1 January 2018.
The group expects to adopt the standard for the first time in the 2019 annual financial statements and the standard will be
applied retrospectively, subject to transitional provisions.
The impact of this standard has not yet been estimated.
IFRS 10
Consolidated Financial Statements
The amendments to IFRS 10 are to address the inconsistencies between IFRS 10
Consolidated Financial Statements
and IAS 28
Investments in Associates
with regard to the sale or contribution of a subsidiary.
The amendments:
Q
Confirm that the IFRS 10.4(a) consolidation exemption is also available to parent entities which are subsidiaries of investment
entities where the investment entity measures its investments at fair value in terms of IFRS 10.31
Q
Modify IFRS 10.32 to state that the consolidation requirement only applies to subsidiaries which are not themselves
investment entities and whose main purpose is to provide services which relate to the investment entity’s investment
activities
Q
Provide relief to non-investment entity investors in associates or joint ventures that are investment entities by allowing the
non-investment entity investor to retain, when applying the equity method, the fair value measurement applied by the
investment entity associates or joint ventures to their interests in subsidiaries
The effective date of these amendments is for years beginning on or after 1 January 2016.
The group expects to adopt these amendments for the first time in the 2017 annual financial statements and the amendments
will be applied retrospectively, subject to transitional provisions.
The impact of these amendments has not yet been estimated.
IFRS 11
Joint Arrangements
The amendments to IFRS 11 provide guidance on accounting for the acquisition of an interest in a joint operation in which the
activity of the joint operation constitutes a business.
The effective date of the amendment is for years beginning on or after 1 January 2016.
The group expects to adopt the amendment for the first time in the 2017 annual financial statements and the amendment will
be applied retrospectively, subject to transitional provisions.
The impact of this amendment has not yet been estimated.
IFRS 15
Revenue from Contracts with Customers
The amendments to IFRS 15 set out new guidance on recognition of revenue that requires recognition in a manner that depicts
the transfer of goods or services to customers at an amount that reflects the consideration the entity expects to be entitled
to in exchange for those goods or services.
The effective date of this standard is for years beginning on or after 1 January 2018.
The group expects to adopt the standard for the first time in the 2019 annual financial statements and the standard will be
applied retrospectively, subject to transitional provisions.
The impact of this standard has not yet been estimated.
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Hyprop Investments Limited
Integrated Report 2015