Page 110 - Interloop Annual Report 2018-2019

NOTES TO THE UNCONSOLIDATED NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENTS FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019 FOR THE YEAR ENDED JUNE 30, 2019
- IFRS 9 ‘Financial instruments’:
IFRS 9 is a replacement for IAS 39 ‘Financial Instruments’ and covers three distinct areas. Phase 1 contains new
requirements for the classification and measurement of financial assets and liabilities. Phase 2 relates to the
impairment of financial assets and requires the calculation of impairment on an expected loss basis rather than
the current incurred loss basis. Phase 3 relates to less stringent requirements for general hedge accounting.
Impact of adoption of IFRS 9 is disclosed in Note. 6.1 of the unconsolidated financial statements.
- IFRS 15, ‘Revenue from Contracts with Customers’:
This standard deals with revenue recognition and establishes principles for reporting useful information to users
of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from
an entity’s contracts with customers. Revenue is recognized when a customer obtains control of a good or
service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard
replaces IAS 18 ‘Revenue’, IAS 11 ‘Construction contracts’ and IFRIC 13, ‘Customer Loyalty Programmes’.
Impact of adoption of IFRS 15 is disclosed in Note. 6.2 of the unconsolidated financial statements.
- IFRIC 22, ‘Foreign currency transactions and advance consideration’:
IFRIC 22 clarifies which date should be used for translation when a foreign currency transaction involves payment
or receipt in advance of the item it relates to. The related item is translated using the exchange rate on the date
the advance foreign currency is received or paid and the prepayment or deferred income is recognized. The
date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the
related asset, expense or income (or part of it) would remain the date on which receipt of payment from advance
consideration was recognized. If there are multiple payments or receipts in advance, the entity shall determine a
date of the transaction for each payment or receipt of advance consideration. The interpretation does not have
a significant impact on these unconsolidated financial statements.
- Annual improvements to IFRS standards 2014-2016 cycle [Amendments to IAS 28 ‘Investments in
Associates and Joint Ventures’]:
Amendments to IAS 28 clarifies that a venture capital organization and other similar entities may elect to
measure investments in associates and joint ventures at fair value through profit or loss, for each associate or
joint venture separately at the time of initial recognition of investment. Furthermore, similar election is available
to non-investment entity that has an interest in an associate or joint venture that is an investment entity, when
applying the equity method, to retain the fair value measurement applied by that investment entity associate or
joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made
separately for each investment entity associate or joint venture. The amendments do not have any impact on
these unconsolidated financial statements.
The other amendments to published standards and interpretations that are mandatory for the financial year are
Interloop Limited considered not to be relevant or to have any significant impact on the Company’s financial reporting and operations
and are therefore not disclosed in these unconsolidated financial statements.
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3.2 Standards, interpretations and amendments to approved accounting standards that are issued but not
yet effective and have not been early adopted by the Company
- Amendment to IAS 19 ‘Employee Benefits, - Plan Amendment, Curtailment or Settlement’ (effective for
annual period beginning on or after January 01, 2019):
The amendments to IAS 19 specify that an entity must;
(i) determine current service cost for the remainder of the period after the plan amendment, curtailment or
settlement using the actuarial assumptions used to remeasure the net defined benefit liability (asset)
reflecting the benefits offered under the plan and the plan assets after that event and determine net
interest for the remainder of the period after the plan amendment, curtailment or settlement using:
(a) the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after
that event; and
(b) the discount rate used to remeasure that net defined benefit liability (asset).
(ii) determine any past service cost, or a gain or loss on settlement, without considering the effect of the
asset ceiling. This amount is to be recognized in profit or loss. An entity then determine the effect of the
asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding
amounts included in net interest, is recognized in other comprehensive income.
The Company is yet to assess the full impact of the amendment.
- Amendment to IAS 28 ‘Investments in Associates and Joint Ventures’ - Long term investment in
Associates and Joint Ventures (effective for annual period beginning on or after January 01, 2019):
The amendment will affect companies that finance such entities with preference shares or with loans for which
repayment is not expected in the foreseeable future (referred to as long-term interests or ‘LTI’). The amendment
and accompanying example state that LTI are in the scope of both IFRS 9 and IAS 28 and explain the annual
sequence in which both standards are to be applied. The amendment is not likely to have an impact on the
Company’s financial statements.
- Amendment to IFRS 9 ‘Financial Instrument’- prepayment Features with Negative Compensation and
modifications of financial liabilities (effective for annual period beginning on or after January 01,
2019):
The amendment allow debt instruments with negative compensation prepayment features to be measured at
amortized cost or fair value through other comprehensive income. The amendment also clarified that gains and
losses arising on modifications of financial liabilities that do not result in derecognition should be recognized in 2018 - 19
profit or loss.
- IFRS 16, ‘Leases’ (effective for periods beginning on or after January 01, 2019): Annual Report
IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for
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