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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Annual Report 2015 109
Notes to the consolidated financial statements
30 June 2015
2 Summary of significant accounting policies (continued)
(af) New standards and interpretations not yet adopted (continued)
Title of
standard Nature of change
Impact
Mandatory application
date/ Date of adoption
by group
AASB 9
Financial
Instruments
(issued
December
2014)
(continued)
A simplified impairment model
applies to trade receivables and
lease receivables with maturities
that are less than 12 months.
For trade receivables and lease
receivables with maturity longer
than 12 months, entities have a
choice of applying the complex
three stage model or the simplified
model.
Hedge accounting
Under the new hedge accounting
requirements:
• The 80-125% highly effective
threshold has been removed.
• Risk components of non-financial
items can qualify for hedge
accounting provided that the risk
component is separately identifiable
and reliably measurable.
• An aggregated position (i.e.
combination of a derivative and a
non-derivative) can qualify for
hedge accounting provided that it is
managed as one risk exposure.
• When entities designate the
intrinsic value of options, the initial
time value is deferred in OCI and
subsequent changes in time value
are recognised in OCI.
• When entities designate only the
spot element of a forward contract,
the forward points can be deferred
in OCI and subsequent changes in
forward points are recognised in
OCI. Initial foreign currency basis
spread can also be deferred in OCI
with subsequent
changes be
recognised in OCI.
• Net foreign exchange cash flow
positions can qualify for hedge
accounting.
Independence Group NL
45