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BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
2. Summaryof significant accounting policies (cont’d)
2.2 Standards issued but not yet effective (cont’d)
Description
Effective for annual
periods beginning
on or after
Improvements to FRSs 2012
- Amendment to FRS 1 Presentation of Financial Statements
1 January 2013
- Amendment to FRS 16 Property, Plant and Equipment
1 January 2013
- Amendment to FRS 32 Financial Instruments: Presentation
1 January 2013
Revised FRS 27 Separate Financial Statements
1 January 2014
Revised FRS 28 Investments inAssociates and Joint Ventures
1 January 2014
FRS 110Consolidated Financial Statements
1 January 2014
FRS 111 Joint Arrangements
1 January 2014
FRS 112Disclosure of Interests inOther Entities
1 January 2014
Amendments to FRS 32Offsetting Financial Assets and Financial Liabilities
1 January 2014
Except for the Amendments to FRS 1, FRS 111, Revised FRS 28 and FRS 112, the directors expect that the
adoption of the other standards and interpretations above will have no material impact on the financial
statements in the period of initial application. The nature of the impending changes in accounting policy on
adoption of the Amendments to FRS 1, FRS 111, Revised FRS 28 and FRS 112 are described below.
Amendments to FRS 1 Presentation of Items of Other Comprehensive Income
The Amendments to FRS 1 Presentation of Items of Other Comprehensive Income (OCI) is effective for financial
periods beginning on or after 1 July 2012.
The Amendments to FRS 1 changes the grouping of items presented inOCI. Items that could be reclassified to
profit or loss at a future point in timewouldbe presented separately from itemswhichwill never be reclassified.
As the Amendments only affect the presentations of items that are already recognised inOCI, theGroup does
not expect any impact on its financial position or performance upon adoption of this standard.
FRS 111 Joint Arrangements and Revised FRS 28 Investments inAssociates and Joint Ventures
FRS 111 Joint Arrangements and Revised FRS 28 Investments inAssociates and Joint Ventures are effective for
financial periods beginning on or after 1 January 2014.
2. Summaryof significant accounting policies (cont’d)
2.2 Standards issued but not yet effective (cont’d)
FRS 111 Joint Arrangements and Revised FRS 28 Investments inAssociates and Joint Ventures (cont’d)
FRS 111 classifies joint arrangements either as joint operations or joint ventures. Joint operation is a joint
arrangement whereby the parties that have rights to the assets and obligations for the liabilities whereas joint
venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the arrangement.
FRS 111 requires the determination of joint arrangement’s classification to be based on the parties’ rights and
obligations under thearrangement,with the existenceof a separate legal vehicleno longer being the key factor.
FRS 111 disallows proportionate consolidation and requires joint ventures to be accounted for using the equity
method. The revised FRS 28was amended to describe the application of equity method to investments in joint
ventures in addition to associates.
TheGroup currently applies equitymethod for its joint ventures.
FRS 112Disclosure of Interests inOther Entities
FRS112Disclosure of Interests inOther Entities is effective for financial periods beginningon or after 1 January
2014.
FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other
entities, including joint arrangements, associates, special purpose vehicles andother off balance sheet vehicles.
FRS112 requiresanentity todisclose information that helps usersof its financial statements toevaluate thenature
and risks associatedwith its interests in other entities and the effects of those interests on its financial statements.
As this is a disclosure standard, it will have no impact to the financial position and financial performance of the
Groupwhen implemented in 2014.
2.3 Basis of consolidation and business combination
(a) Basis of consolidation
Basis of consolidation from 1 January 2010
Theconsolidatedfinancial statements comprise thefinancial statementsof theCompanyand its subsidiaries
as at the end of the reporting period. The financial statements of the subsidiaries used in the preparation
of the consolidated financial statements are prepared for the same reporting date as the Company.
Consistent accounting policies are applied to like transactions and events in similar circumstances.
All intra-groupbalances, income and expenses and unrealisedgains and losses resulting from intra-group
transactions and dividends are eliminated in full.
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
for the financial year ended 31december 2012
