Page 183 - Interloop Annual Report 2018-2019

NOTES TO THE CONSOLIDATED NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2019 FOR THE YEAR ENDED JUNE 30, 2019

(a) the net defined benefit liability (asset) reflecting the benefits offered under the plan and the applied where there is uncertainty over income tax treatments. An uncertain tax treatment is any tax
plan assets after that event; and treatment applied by an entity where there is uncertainty over whether that treatment will be accepted
by the tax authority. For example, a decision to claim a deduction for a specific expense or not to
(b) the discount rate used to remeasure that net defined benefit liability (asset); and
include a specific item of income in a tax return is an uncertain tax treatment if its acceptability is
uncertain under tax law. IFRIC 23 applies to all aspects of income tax accounting where there is
(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 an uncertainty regarding the treatment of an item, including taxable profit or loss, the tax bases of
the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change assets and liabilities, tax losses and credits and tax rates. The interpretation is not expected to have
in that effect, excluding amounts included in net interest, is recognized in other comprehensive significant impact on the Company’s financial statements.
income.
- Amendments to IAS 1, ‘Presentation of financial statements’, and IAS 8, ‘Accounting
policies, changes in accounting estimates and errors’ (effective for the Company’s annual
The Company is yet to assess the full impact of the amendment.
period beginning on January 1, 2019):
- 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 These amendments and consequential amendments to other IFRSs:
01, 2019): (i) use a consistent definition of materiality throughout IFRSs and the Conceptual Framework for
Financial Reporting;
The amendment will affect companies that finance such entities with preference shares or with loans (ii) clarify the explanation of the definition of material; and
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 (iii) incorporate some of the guidance in IAS 1 about immaterial information.
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. These amendments are not expected to have a significant impact on the Company’s future financial
statements.
- Amendment to IFRS 9 ‘Financial Instrument’- prepayment Features with Negative
Compensation and modifications of financial liabilities (effective for annual period beginning - Amendment to IFRS 3 ‘Business Combinations’ – Definition of a Business (effective for
on or after January 01, 2019): business combinations for which the acquisition date is on or after the beginning of annual
period beginning on or after 1 January 2020):
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 The IASB has issued amendments aiming to resolve the difficulties that arise when an entity
also clarified that gains and losses arising on modifications of financial liabilities that do not result in determines whether it has acquired a business or a group of assets. The amendments clarify that to
derecognition should be recognized in profit or loss. be considered a business, an acquired set of activities and assets must include, at a minimum, an
input and a substantive process that together significantly contribute to the ability to create outputs.
- IFRS 16, ‘Leases’ (effective for periods beginning on or after January 01, 2019): The amendments include an election to use a concentration test. The standard is effective for
transactions in the future and therefore would not have an impact on past financial statements.
IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and
liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. - Annual Improvements to IFRS Standards 2015–2017 Cycle. The new cycle of improvements
A lessee is required to recognize a right-of-use asset representing its right to use the underlying addresses improvements to following approved accounting standards (effective for annual
leased asset and a lease liability representing its obligation to make lease payments. The full impact period beginning on or after January 1, 2019):
of the future adoption is currently under review.
- IFRS 3 Business Combinations and IFRS 11 Joint Arrangements. The amendment aims to clarify
- IFRIC 23 ‘Uncertainty over Income Tax Treatments’ (effective for annual periods beginning the accounting treatment when a company increases its interest in a joint operation that meets
on or after January 01, 2019): the definition of a business. A company remeasures its previously held interest in a joint operation 2018 - 19
when it obtains control of the business. A company does not remeasure its previously held interest
Interloop Limited IFRIC 23 clarifies how the recognition and measurement requirements of IAS 12 ‘Income taxes’, are in a joint operation when it obtains joint control of the business. Annual Report

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