. 83
ANNUAL
REPORT
20 1 7
THE BE ST
I N US
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.2
Standards issuedbutnot yet effective
TheGrouphas not adopted the following standards applicable to theGroup that have been issuedbut not
yet effective:
Description
Effective for annual
periodsbeginning
onor after
Amendments to FRS102
Classification andMeasurement
of Share-basedPayment Transactions
1 January 2018
Amendments to FRS40
Transfers of Investment Property
1 January 2018
FRS109
Financial Instruments
1 January 2018
FRS115
Revenue fromContractswithCustomers
1 January 2018
FRS116
Leases
1 January 2019
Improvements to FRSs (December 2016)
INT FRS122
ForeignCurrency Transactions andAdvanceConsideration
1 January 2018
INT FRS123
Uncertaintyover IncomeTax Treatments
1 January 2019
Except for FRS 115, FRS 109 and FRS 116, the directors expect that the adoption of the other standards
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 FRS 115, FRS 109 and FRS 116 are
describedbelow.
FRS115
Revenue fromContractswithCustomers
FRS115establishes a five-stepmodel to account for revenue arising fromcontractswithcustomers. Under
FRS 115, revenue is recognised at an amount that reflects the considerationwhich an entity expects to be
entitled inexchange for transferringgoods or services to a customer.
The new revenue standard will supersede all current revenue recognition requirements under FRS. A full
retrospectiveapplication is required for annual periodsbeginningonor after 1January2018. Earlyadoption
is permitted.
TheGroup ismainlyengaged in thedevelopment andconstructionbusiness for specialisedmarineoffshore
equipmentandmarinevessels.TheGrouphasassessed that formostof itsprojects,performanceobligations
for the saleof the vessels andequipmentwill be satisfiedover time. Accordingly, theGroupdoesnot expect
any significant impact to arise from the adoptionof FRS115.
TheGroupwill adopt the new standard on the required effective date using the full retrospectivemethod
andapplyall thepractical expedients available for full retrospectiveapproachunder FRS115as listedabove.
