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128
Gamuda Berhad (29579-T) • Annual Report 2012
2.
Summary of significant accounting policies (cont’d.)
2.3 Standards issued but not yet effective (cont’d.)
FRS 9 Financial Instruments
FRS 9 reflects the first phase of work on the replacement of FRS 139 and applies to classification and
measurement of financial assets and financial liabilities as defined in FRS 139. The adoption of this first
phase of FRS 9 will have an effect on the classification and measurement of the Group’s financial assets but
will potentially have no impact on classification and measurements of financial liabilities.
FRS 10 Consolidated financial statements
FRS 10 replaces the portion of FRS 127 Consolidated and Separate Financial Statements that addresses the
accounting for consolidated financial statements. FRS 10 establishes a single control model that applies to
all entities including special purpose entities. The changes introduced by FRS 10 will require management to
exercise significant judgement to determine which entities are controlled, and therefore, are required to be
consolidated by a parent, compared with the requirements that were in FRS 127.
FRS 11 Joint Arrangements
FRS 11 replaces FRS 131 Interests in Joint Ventures and IC Interpretation 113 Jointly-controlled Entities – Non-
monetary Contributions by Venturers.
A joint arrangement can be either a joint venture or a joint operation.
FRS 11 requires a joint operator to recognise and measure the assets and liabilities (and recognise the
related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant FRSs
applicable to particular assets, liabilities, revenues and expenses.
FRS 11 requires a joint venturer to recognise an investment and to account for that investment using the
equity method in accordance with FRS 128 Investments in Associates and Joint Ventures, unless the entity is
exempted from applying the equity method as specified in that standard.
FRS 12 Disclosure of Interests in Other Entities
FRS 12 includes all disclosure requirements for interests in subsidiaries, joint arrangements, associates and
structured entities. A number of new disclosures are required. This standard affects disclosures only and has
no impact on the Group’s financial position or performance.
FRS 13 Fair Value Measurement
FRS 13 establishes a single source of guidance under FRS for all fair value measurements. FRS 13 does
not change when an entity is required to use fair value, but rather provides guidance on how to measure fair
value under FRS when fair value is required or permitted.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012