Annual Report 2016
71
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
2.
APPLICATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
– continued
IFRS 9 Financial Instruments
– continued
• the new general hedge accounting requirements retain the three types of hedge
accounting mechanisms currently available in IAS 39. Under IFRS 9, greater flexibility has
been introduced to the types of transactions eligible for hedge accounting, specifically
broadening the types of instruments that qualify for hedging instruments and the types of
risk components of non-financial items that are eligible for hedge accounting. In addition,
the retrospective quantitative effectiveness text has been removed. Enhanced disclosure
requirements about an entity’s risk management activities have also been introduced.
The directors of the Company anticipate that the application of IFRS 9 in the future may have
a material impact on amounts reported in respect of the Group’s financial assets and financial
liabilities. It is not practicable to provide a reasonable estimate of that effect until a detailed review
has been completed.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 was issued which establishes a single comprehensive model for entities to use in
accounting for revenue arising from contracts with customers. IFRS 15 will supersede the current
revenue recognition guidance including IAS 18
Revenue
, IAS 11
Construction Contracts
and
related interpretations when it becomes effective.
The core principle of IFRS 15 is that an entity should recognise 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. Specifically, the Standard
introduces a 5-step approach to revenue recognition:
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
