Page 47 - CPC 2018 Annual Report

FINANCIAL STATEMENTS 45
(b)The impact of IFRSs endorsed by FSC but not yet effective
The following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2018 in accordance with Ruling No.1060025773 issued by the FSC on July 14, 2017.
New, Revised or Amended Standards and Interpretations
Effective date per IASB
Amendment to IFRS 2 “Classification and Measurement of Share-based Payment Transactions”
IFRS 9 “Financial Instruments”
Amendment to IAS 7 “Statement of Cash Flows-Disclosure Initiative”
Amendments to IAS 40 “Transfers of Investment Property”
Amendments to IFRS 12
IFRIC 22 “Foreign Currency Transactions and Advance Consideration”
January 1, 2018
January 1, 2018
January 1, 2017
January 1, 2018
January 1, 2017
January 1, 2018
Amendments to IFRS 4 “Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts”
January 1, 2018
IFRS 15 “Revenue from Contracts with Customers”
January 1, 2018
Amendment to IAS 12 “Income Taxes-Recognition of Deferred Tax Assets for Unrealized Losses”
January 1, 2017
Annual Improvements to IFRS Standards 2014–2016 Cycle:
Amendments to IFRS 1 and Amendments to IAS 28
January 1, 2018
Except for the following items, the Company believes that the adoption of the above IFRSs would not have any material impact on its financial statements. The extent and impact of signification changes are as follows:
1. IFRS 9 “Financial Instruments”
IFRS 9 replaces IAS 39 “Financial Instruments: Recognition and Measurement” which contains classification and measurement of financial instruments, impairment and hedge accounting.
(i) Classification-Financial assets
IFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. IFRS 9 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). The standard eliminates the existing IAS 39 categories of held to maturity, loans and receivables and available for sale. Under IFRS 9, derivatives embedded in contracts where the host is a financial assets in the scope of the standard are never bifurcated. Instead, the hybrid financial instrument as a whole is assessed for classification. In addition, IAS 39 has an exception to the measurement requirements for investments in unquoted equity instruments that do not have a quoted market price in an active market (and derivatives on such an instrument) and for which fair value cannot therefore be measured reliable. Such financial instruments are measured at cost. IFRS 9 removes this exception, requiring all equity investments (and derivatives on them) to be measured at fair value.