Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Axiata Group Berhad (242188-H) Annual Report 20122. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)(b) Standards, revised and amendments to published standards that are applicable to the Group andthe Company but not yet effective (continued)(i)Financial year beginning on/after 1 January 2013 (continued)• MFRS 13 “Fair value measurement” (effective from 1 January 2013) aims to improve consistency andreduce complexity by providing a precise definition of fair value and a single source of fair valuemeasurement and disclosure requirements for use across MFRSs. The requirements do not extendthe use of fair value accounting but provide guidance on how it should be applied where its use isalready required or permitted by other standards. The enhanced disclosure requirements are similarto those in MFRS 7 “Financial instruments: Disclosures”, but apply to all assets and liabilitiesmeasured at fair value, not just financial ones.• The revised MFRS 127 “Separate financial statements” (effective from 1 January 2013) includes theprovisions on separate financial statements that are left after the control provisions of MFRS 127have been included in the new MFRS 10.• The revised MFRS 128 “Investments in associates and joint ventures” (effective from 1 January 2013)includes the requirements for joint ventures, as well as associates, to be equity accounted followingthe issue of MFRS 11.• Amendment to MFRS 101 “Presentation of items of other comprehensive income” (effective from 1July 2012) requires entities to separate items presented in ‘other comprehensive income’ in thestatement of comprehensive income into two groups, based on whether or not they may berecycled to profit or loss in the future. The amendments do not address which items are presentedin other comprehensive income.• Amendment to MFRS 7 “Financial instruments: Disclosures” (effective from 1 January 2013) requiresmore extensive disclosures focusing on quantitative information about recognised financialinstruments that are offset in the statement of financial position and those that are subject tomaster netting or similar arrangements irrespective of whether they are offset.(ii) Financial year beginning on/after 1 January 2014• Amendment to MFRS 132 “Financial instruments: Presentation” (effective from 1 January 2014) doesnot change the current offsetting model in MFRS 132. It clarifies the meaning of ‘currently has alegally enforceable right of set-off’ that the right of set-off must be available today (not contingenton a future event) and legally enforceable for all counterparties in the normal course of business. Itclarifies that some gross settlement mechanisms with features that are effectively equivalent to netsettlement will satisfy the MFRS 132 offsetting criteria.177