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Financial
Statements
& Others
128
Gamuda Berhad (29579-T)
Annual Report 2013
2. Summary of significant accounting policies (cont’d.)
2.3 Standards issued but not yet effective (cont’d.)
Effective for annual periods beginning on or after 1 January 2015:
FRS 9
Financial Instruments
The directors expect that the adoption of the standards and interpretations above will have no significant
impact on the financial statements in the period of initial application, except as disclosed below:
FRS 9 Financial Instruments - Classification and Measurement
FRS 9 addresses the classification and measurement of financial instruments. FRS 9 defines criteria for
financial assets that can be measured at amortised costs subsequent to its initial recognition and also
requires changes of fair value attributable to credit risk change for financial liabilities to be presented in
statement of other comprehensive income.
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.
Notes to the Financial Statements
31 July 2013