108 / 164
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
108 Independence Group NL
Notes to the consolidated financial statements
30 June 2015
2 Summary of significant accounting policies (continued)
(af) New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2015
reporting periods and have not been early adopted by the Group. The Group’s assessment of the impact of these new
standards and interpretations is set out below.
Title of
standard Nature of change
Impact
Mandatory application
date/ Date of adoption
by group
AASB 9
Financial
Instruments
(issued
December
2014)
Classification and measurement
AASB 9 amendments the
classification and measurement of
financial assets:
• Financial assets will either be
measured at amortised cost, fair
value through other comprehensive
income ("FVTOCI") or fair value
through profit or loss ("FVTPL").
• Financial assets are measured at
amortised cost or FVTOCI if certain
restrictive conditions are met. All
other financial assets are measured
at FVTPL.
• All
investments in equity
instruments will be measured at fair
value. For those investments in
equity instruments that are not held
for trading, there is an irrevocable
election to present gains and losses
in OCI.
Dividends will
be
recognised in profit or loss.
The following requirements have
generally been carried forward
unchanged from AASB 139
Financial Instruments: Recognition
and Measurement into AASB 9:
• Classification and measurement
of financial liabilities, and
• Derecognition requirements for
financial assets and liabilities.
However, AASB 9 requires that
gains or losses on financial
liabilities measured at fair value are
recognised in profit or loss, except
that the effects of changes in the
liability’s credit risk are recognised
in other comprehensive income.
Impairment
The new impairment model in
AASB 9 is now based on an
‘expected loss’ model rather than
an ‘incurred loss’ model.
A complex three stage model
applies to debt instruments at
amortised cost or at fair value
through other
comprehensive
income for recognising impairment
losses.
Adoption of AASB 9 is only
mandatory for the year ending
30 June 2019.
This standard is not expected to
impact the Group as financial
assets are currently classified
through profit or loss.
The entity currently applies
hedge accounting. It is expected
that the application of the new
amendments will not have an
impact on the entity’s financial
statements.
The new impairment model is an
expected credit loss ("ECL")
model which may result in the
earlier recognition of credit
losses.
Mandatory for financial
years commencing on or
after 1 January 2018.
Expected date of
adoption by the group: 1
July 2018.
Independence Group NL
44