. 8 5
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 (cont’d)
(c)
Transition
The Group plans to adopt the new standard on the required effective date without restating prior
periods’ information and recognises any difference between the previous carrying amount and the
carrying amount at the beginning of the annual reporting period at the date of initial application in
theopening retainedearnings.
FRS116
Leases
FRS 116 requires lessees to recognisemost leases on balance sheets to reflect the rights to use the leased
assets and the associated obligations for lease payments as well as the corresponding interest expense
and depreciation charges. The standard includes two recognition exemption for lessees – leases of ‘low
value’ assets and short-term leases. The new standard is effective for annual periods beginning on or after
1 January 2019.
TheGrouphasperformedapreliminary impact assessment of theadoptionof FRS116andexpects that the
adoptionof FRS116will result in increase in total assets, total liabilities andEBITDA.
TheGroupplans toadopt thenewstandardon the requiredeffectivedatebyapplyingFRS116 retrospectively
with thecumulativeeffectof initial applicationasanadjustment to theopeningbalanceof retainedearnings
as at 1 January 2019.
TheGroup iscurrently in theprocessof analyzing the transitional approachesandpractical expedients tobe
electedon transition to FRS116 and assessing thepossible impact of adoption.
