3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.23 New standards and interpretations not adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1
January 2015, and have not been applied in preparing these financial statements. The Group is currently assessing the potential
impact of adopting these new standards and interpretations, on the financial statements of the Group and the Company.
These new standards include, among others, FRS 115
Revenue from Contracts with Customers
and FRS 109
Financial
Instruments
which are mandatory for the adoption by the Group on 1 January 2018.
• FRS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It
also introduces a new cost guidance which requires certain costs of obtaining and fulfilling contracts to be recognised as
separate assets when specified criteria are met. When effective, FRS 115 replaces existing revenue recognition guidance,
including FRS 18
Revenue
, FRS 11
Construction Contracts
, INT FRS 113
Customer Loyalty Programmes
, INT FRS 115
Agreements for the Construction of Real Estate
, INT FRS 118
Transfers of Assets from Customers
and INT FRS 31
Revenue
– Barter Transactions Involving Advertising Services
.
• FRS 109 replaces most of the existing guidance in FRS 39
Financial Instruments: Recognition and Measurement
. It includes
revised guidance on classification and measurement of financial instruments, a new expected credit loss model for
calculating impairment on financial assets, and new general hedge accounting requirements.
As FRS 115 and FRS 109, when effective, will change the existing accounting standards and guidance applied by the Group and
the Company in accounting for revenue and financial instruments, these standards are expected to be relevant to the Group
and the Company. The Group has set up a process to assess the potential impact on its financial statements and to implement
the standards. The Group does not plan to adopt these standards early.
The Accounting Standards Council (ASC) announced on 29 May 2014 that Singapore-incorporated companies listed on the
Singapore Exchange (SGX) will apply a new financial reporting framework identical to the International Financial Reporting
Standards (IFRS) for financial year ending 31 December 2018 onwards. Singapore-incorporated companies listed on SGX will
have to assess the impact of IFRS 1:
First-time adoption of IFRS
when transitioning to the new reporting framework. The Group
is currently assessing the impact of transitioning to the new reporting framework on its financial statements.
76
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
NOTES TO THE
FINANCIAL STATEMENTS
