IFRS 13 was amended to clarify that the issuance of IFRS 13 and related amendments to other IFRSs did not remove
the ability to measure short-term receivables and payables with no stated interest rate at their invoice amounts without
discounting, if the effect of not discounting is immaterial.
5) Amendments to IAS 16 and IAS 38 “Clarification of Acceptable Methods of Depreciation and Amortization”
An entity should use an appropriate depreciation and amortization method to reflect the pattern in which it expects to
consume the future economic benefits of the property, plant and equipment and intangible assets.
The amended IAS 16 “Property, Plant and Equipment” states that revenue is an inappropriate basis for measuring
depreciation expense. The amended standard does not provide any exception from this requirement.
The amended IAS 38 “Intangible Assets” states there is a rebuttable presumption that an amortization method based on
revenue that is generated by an activity that includes the use of an intangible asset is not appropriate. This presumption can
be overcome only in the following circumstances:
a) The intangible asset is expressed as a measure of revenue (for example, the contract that specifies the entity’s use of the
intangible asset will expire upon achievement of a revenue threshold); or
b) It can be demonstrated that revenue and the consumption of the economic benefits of the intangible asset are highly correlated.
An entity should apply the foregoing amendments prospectively for annual periods beginning on or after the effective date.
6) IFRS 15 “Revenue from Contracts with Customers”
IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and supersedes IAS 18
“Revenue”, IAS 11 “Construction Contracts” and a number of revenue-related interpretations.
In applying IFRS 15, an entity should recognize revenue by taking the following steps:
• Identify the contract with the customer;
• Identify the performance obligations in the contract;
• Determine the transaction price;
• Allocate the transaction price to the performance obligations in the contracts; and
• Recognize revenue when the entity satisfies, or as it satisfies, a performance obligation.
When IFRS 15 takes effect, an entity may elect to apply this Standard either (a) retrospectively to each prior reporting period
presented in accordance with IAS 36 “Recoverable Amount Disclosures for Non-financial Assets” and the related provisions
of IFRS 15, or (b) retrospectively, with the cumulative effect of initially applying this Standard recognized at the date of initial
application in accordance with certain sections of IFRS 15.
7) Annual Improvements to IFRSs: 2012-2014 Cycle
IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” IFRS 7 “Financial Instruments: Disclosures,” IAS 19
“Employee Benefits,” and IAS 34 “Interim Financial Reporting” were amended in this improvement process.
IAS 19 was amended to clarify that the high-quality corporate bonds used to estimate discount rate for post-employment
benefits should be determined at the same currency as that used for benefit payments. Thus, the depth of the market for
these bonds will be assessed at the currency level instead of the country or regional market level.
IAS 34 “Interim Financial Reporting” was amended to clarify that the disclosure required by IAS 34 may be included in
interim financial statements by cross-reference to another statement if the latter statement is available to users on the same
terms and at the same time as the interim financial statements.
8) Amendment to IAS 1 “Disclosure Initiative”
The amendment clarifies that the consolidated financial statements should be prepared for the purpose of disclosing
material information. To improve the understandability of its consolidated financial statements, the Corporation should
disaggregate the disclosure of material items into their different natures or functions, and disaggregate material information
from immaterial information.
The amendment further clarifies that the Corporation should consider the understandability and comparability of its
consolidated financial statements to determine a systematic order in presenting its footnotes.
Except for the above impact, as of the date the financial statements were authorized for issue, the Corporation is continuously
assessing the possible impact that the application of other standards and interpretations will have on the Corporation’s financial
position and financial performance, and will disclose the relevant impact when the assessment is completed.
