Page 180 - Interloop Annual Report 2018-2019

NOTES TO THE CONSOLIDATED NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
meets, or ceases to meet, the definition of investment property and there is evidence of the change
in use. In isolation, a change in management’s intentions for the use of a property does not provide
evidence of a change in use. The amendment does not have any impact on Company’s financial
statements.
- Amendments to IFRS 2 ‘Share-based Payment’ - Clarifying how to account for certain
types of share-based payments:
The amendments are intended to eliminate diversity in practice in three main areas:
- The effects of vesting conditions on the measurement of a cash-settled share-based payment
transaction;
- The classification of a share-based payment transaction with net settlement features for withholding
tax obligations;
- The accounting where a modification to the terms and conditions of a share-based payment
transaction changes its classification from cash-settled to equity-settled.
The amendment does not have a significant impact on these consolidated financial statements.
- Amendment to IFRS 4 ‘Insurance Contract’- Applying IFRS 9 ‘Financial Instruments’ with
IFRS 4:
The amendment address issue arising from the different effective dates of IFRS 9 and the forthcoming
new insurance contract standard IFRS 17 ‘Insurance Contracts’. The amendments introduce two
alternative options for entities issuing contracts within the scope of IFRS 4, notably a temporary
exemption and an overlay approach. The temporary exemption enables eligible entities to defer the
implementation date of IFRS 9. The overlay approach allows an entity applying IFRS 9 from July
01, 2018 onwards to remove from profit or loss the effects of some of the accounting mismatches
that may occur from applying IFRS 9 before IFRS 17 is applied. The amendment does not have any
impact on the Company’s financial statements.
- 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. 7.1 of
the financial statements.
- IFRS 15, ‘Revenue from Contracts with Customers’:
This standard deals with revenue recognition and establishes principles for reporting useful information
Interloop Limited cash flows arising from an entity’s contracts with customers. Revenue is recognized when a customer
to users of financial statements about the nature, amount, timing and uncertainty of revenue and
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’
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FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019
and IFRIC 13, ‘Customer Loyalty Programmes’. Impact of adoption of IFRS 15 is disclosed in Note.
7.2 of the 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 the these 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 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 financial statements.
The other amendments to published standards and interpretations that are mandatory for the financial
year are 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 financial statements.
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 2018 - 19
benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after Annual Report
that event and determine net interest for the remainder of the period after the plan amendment,
curtailment or settlement using:
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