continued - The Lion Group

4. CHANGES IN ACCOUNTING POLICIES (continued)
(a) Standards issued but not yet effective (continued)
Effective for financial periods beginning on or after 1 July 2010
FRS 1 First-time Adoption of Financial Reporting Standards
FRS 3 Business Combinations (revised)
FRS 127 Consolidated and Separate Financial Statements (amended)
Amendments to FRS 2 Share-based Payment
Amendments to FRS 5 Non-current Assets Held for Sale and Discontinued Operations
Amendments to FRS 138 Intangible Assets
Amendments to Reassessment of Embedded Derivatives
IC Interpretation 9
IC Interpretation 12 Service Concession Arrangements
IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation
IC Interpretation 17 Distributions of Non-Cash Asset to Owners
Effective for financial periods beginning on or after 1 January 2011
Amendments to FRS 1 Limited Exemption from Comparative FRS 7 Disclosures for
First-time Adopters
Amendments to FRS 7 Improving Disclosures about Financial Instruments
Effective for financial periods beginning on or after 1 January 2012
IC Interpretation 15 Agreements for the Construction of Real Estate
The Group and the Company plan to adopt the above pronouncements when they become effective in
the respective financial period. Unless otherwise described below, these pronouncements are expected
to have no significant impact to the financial statements of the Group and the Company upon their initial
application:
Pronouncements effective for financial periods beginning on or after 1 January 2010:
FRS 101: Presentation of Financial Statements (revised)
The revised FRS 101 separates owner and non-owner changes in equity. Therefore, the statement of changes
in equity will now include only details of transactions with owners. All non-owner changes in equity
are presented as a single line labelled as total comprehensive income. The Standard also introduces the
statement of comprehensive income: presenting all items of income and expense recognised in the income
statement, together with all other items of recognised income and expense, either in one single statement,
or in two linked statements. The Group is currently evaluating the format to adopt. In addition, a statement
of financial position is required at the beginning of the earliest comparative period following a change in
accounting policy, the correction of an error or the reclassification of items in the financial statements. This
revised FRS does not have any impact on the financial position or results of the Group and the Company.
FRS 123: Borrowing Costs (revised)
This Standard supersedes FRS 1232004: Borrowing Costs that removes the option of expensing borrowing
costs and requires capitalisation of such costs that are directly attributable to the acquisition, construction
or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognised as
an expense. As the Group’s current policy of borrowing costs aligns with the requirements of the Standard,
the adoption of the Standard does not have any impact on the financial position or results of the Group.
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