CPA Annual Report : CPA Annual report 2012
Amendments to HKAS 1 (Revised) improve the presentation of other comprehensive income. e amendments require entities to group together the items of other comprehensive income that may be reclassified to profit or loss in the future by presenting them separately from those that will not be reclassified to profit or loss. e amended HKAS 1 will be effective for annual periods beginning on or a er 1 July 2012. e amendments have been applied retrospectively, and hence the presentation of items of other comprehensive income has been modified to reflect the change. Other than the change in presentation of other comprehensive income, the application of the amendments does not have any significant impact on the Group. HKAS 19 (2011), which replaces HKAS 19 "Employee Benefits", improves the accounting for defined benefit plans. Under the revised standard, all changes in the present value of the defined benefit obligation and the fair value of plan assets will be recognized in the financial statements immediately in the period they occur. e revised standard also changes the definitions of, among others, short-term employee benefits and other long-term employee benefits so that the distinction between the two will depend on when the entity expects the benefits to be wholly settled. Under the amended definitions, an employee benefit, other than a termination benefit, is a short-term employee benefit when it is expected to be settled wholly before 12 months a er the end of the annual reporting period in which the employees render the related service. If this is not the case, then it is an other long-term employee benefit, provided it is not a post-employment benefit. HKAS 19 (2011) will be effective for annual periods beginning on or a er 1 January 2013. e adoption of HKAS 19 (2011) has no significant impact to the amounts reported or presentation and disclosures in the financial statements. "Annual Improvements 2009-2011 Cycle" sets out a collection of amendments to HKFRSs which make necessary, but non-urgent, amendments to HKFRSs that will not be included as part of another major project. e amendments, among others, clarify the requirements for comparative information, the classification of servicing equipment and the income tax consequences of distributions to holders of an equity instrument and of transaction costs of an equity transaction. e amendments are effective for annual periods beginning on or a er 1 January 2013. e application of the amendments does not have any significant impact on the Group. c. E ects of revised HKFRSs that were issued a er 30 June 2012 and up to the date of approval of the nancial statements e Institute has issued the following revised HKFRSs a er 30 June 2012 and up to the date of approval of the financial statements which are applicable to these financial statements but not early adopted by the Group: Amendments to HKFRS 10, "Consolidated Financial Statements, Joint Arrangements and Disclosure HKFRS 11 and HKFRS 12 of Interests in Other Entities: Transition Guidance" Amendments to HKFRS 10, HKFRS 11 and HKFRS 12 clarify the transition guidance in HKFRS 10 and provide additional transition relief in HKFRS 10, HKFRS 11 and HKFRS 12. In particular, for retrospective application, the amendments limit the requirement to provide adjusted comparative information to the annual period immediately preceding the date of the initial application of those HKFRSs. Furthermore, the amendments remove the requirement to present comparative disclosure information related to unconsolidated structured entities for periods before HKFRS 12 is first applied. e effective date of the amendments is annual periods beginning on or a er 1 January 2013, which is aligned with the effective date of HKFRSs 10, 11 and 12. e Group anticipates that application of the above revised HKFRSs will have no significant impact on the results and the financial position of the Group.