4) Revision to IAS 19 “Employee Benefits”
Revised IAS 19 requires the recognition of changes in defined benefit obligations and in the fair value of plan assets when they
occur, and hence eliminates the “corridor approach” permitted under current IAS 19 and accelerate the recognition of past
service costs. The revision requires all remeasurements of the defined benefit plans to be recognized immediately through
other comprehensive income in order for the net pension asset or liability to reflect the full value of the plan deficit or surplus.
Furthermore, the interest cost and expected return on plan assets used in current IAS 19 are replaced with a “net interest”
amount, which is calculated by applying the discount rate to the net defined benefit liability or asset. In addition, the revised
IAS 19 introduces certain changes in the presentation of the defined benefit cost, and also includes more extensive disclosures.
5) Amendments to IFRS 7 “Disclosure - Offsetting Financial Assets and Financial Liabilities”
The amendments to IFRS 7 require the disclosure of information on the rights of offset and related arrangements (such as
collateral posting requirements) for financial instruments under enforceable master netting agreements or similar arrangements.
6) Amendments to IAS 32 “Offsetting Financial Assets and Financial Liabilities”
The amendments to IAS 32 clarify the requirements relating to the offset of financial assets and financial liabilities.
Specifically, the amendments clarify the meaning of “currently has a legally enforceable right of set-off” and “simultaneous
realization and settlement”.
7) Annual Improvements to IFRSs: 2009-2011 Cycle
Several standards – IFRS 1 “First-time Adoption of International Financial Reporting Standards, ”IAS 1“ Presentation of
Financial Statements, ”IAS 16“ Property, Plant and Equipment, ”IAS 32“ Financial Instruments: Presentation” and IAS 34
“Interim Financial Reporting” – were amended in this annual improvement.
The amendments to IAS 1 clarify that an entity is required to present a third balance sheet as at the beginning of
the preceding period when (a) the entity changes an accounting policy, or makes retrospective restatements or
reclassifications, and (b) the accounting change, or retrospective restatement or reclassification has a material effect on
the information in the balance sheet at the beginning of the preceding period. The amendments also clarify that, unless
required by certain IFRSs, notes are not required for the third balance sheet.
The amendment to IAS 16 clarifies that spare parts, standby equipment and servicing equipment should be recognized
as property, plant and equipment (PPE) when they meet the PPE definition, and as inventory when they do not meet the
PPE definition.
The amendments to IAS 32 clarify that income taxes relating to distributions to holders of an equity instrument and to
transaction costs of an equity transaction should be accounted for in accordance with IAS 12 “Income Taxes.”
The amendment to IAS 34 clarifies that a measure of total liabilities for a reportable segment should be disclosed in
interim financial reporting only when the related amounts are regularly provided to the chief operating decision maker of
the Corporation and there has been a material change in the total liabilities of this segment from the amount disclosed in
the last annual financial statements.
The initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities
Issuers and the 2013 IFRSs version in 2015 is expected to have a material effect on the balance sheet as of January 1,
2014. In preparing the financial statements for the year ended December 31, 2015, the Corporation should present a
balance sheet as of January 1, 2014 in accordance with the above amendments to IAS 1 and disclose related information
in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” but is not required to make
disclosures about the line items of the balance sheet as of January 1, 2014.
Recognition and measurement of financial liabilities designated as at fair value through profit or loss.
In accordance with the amendments to the Regulations Governing the Preparation of Financial Reports by Securities
Issuers, for financial liabilities designated as at fair value through profit or loss, the amount of change in the fair value
attributable to changes in the credit risk of that liability is presented in other comprehensive income and the remaining
amount of change in the fair value of that liability is presented in profit or loss. Changes in fair value attributable to a
financial liability's credit risk are not subsequently reclassified to profit or loss. If the above accounting treatment would
create or enlarge an accounting mismatch, all gains or losses on that liability are presented in profit or loss.
b. New IFRSs in issue but not yet endorsed by the FSC
The Corporation has not applied the following New IFRSs issued by the IASB but not yet endorsed by the FSC. As of the
date the financial statements were authorized for issue, the FSC has not announced their effective dates.
