Page 51 - CPC 2018 Annual Report

FINANCIAL STATEMENTS 49
Those which may be relevant to The Company are set out below:
Issuance / Release Dates
Standards or Interpretations
Content of amendment
January 13, 2016
IFRS 16 “Leases”
The new standard of accounting for lease is amended as follows:
• For a contract that is, or contains, a lease, the lessee shall recognize a right-of-use asset and a lease liability in the balance sheet. In the statement of profit or loss and other comprehensive income, a lessee shall present interest expense on the lease liability separately from the depreciation charge for the right of-
use asset during the lease term.
• A lessor classifies a lease as either a finance lease or an
operating lease, and therefore, the accounting remains similar to IAS 17.
June 7, 2017
IFRIC 23 “Uncertainty over Income Tax Treatments”
• In assessing whether and how an uncertain tax treatment affects the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity shall assume that a taxation authority will examine the amounts it has the right to examine and have a full knowledge on all related information when making those examinations.
• If an entity concludes that it is probable that the taxation authority will accept an uncertain tax treatment, the entity shall determine the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment used or planned to be used in its income tax filings. Otherwise, an entity shall reflect the effect of uncertainty for each uncertain tax treatment by using either the most likely amount or the expected value, depending on which method the entity expects to better predict the resolution of the uncertainty.
October 12, 2017
Amendments to IAS 28 “Long-term interests
in associates and joint ventures”
• The amendment to IAS 28, which addresses equity-accounted loss absorption by long-term interests, will affect companies that finance such entities with preference shares or with loans for which repayment is not expected in the foreseeable future (referred to as long-term interests or ‘LTI’). It also involves the dual application of IAS 28 and IFRS 9 Financial Instruments.
December 12, 2017
Annual Improvements to IFRS Standards 2015- 2017 Cycle
• IFRS 3 Business
Combinations and IFRS
11 Joint Arrangements
• IAS 12 Income Taxes
• IAS 23 Borrowing
Costs
Clarify how a Company accounts for increasing its interest in a joint operation that meets the definition of a business.
• If a party maintain joint control, then the previously held interest is
not remeasured.
• If a party obtains control, then the transaction is a business
combination achieved in stages and the acquiring party remeasures
the previously held interest at fair value.
• Clarify that all income tax consequences of dividends (including
payments on financial instruments classified as equity) are recognized consistently with the transactions that generated the distributable profits-i.e. in profit or loss, OCI or equity.
• Clarify that the general borrowings pool used to calculate eligible borrowing costs excludes only borrowings that specifically finance qualifying assets that are still under development or construction. Borrowings that were intended to specifically finance qualifying assets that are now ready for their intended use or sale – or any non-qualifying assets – are included in that general pool. As the costs of retrospective application might outweigh the benefits, the changes are applied prospectively to borrowing costs incurred on or after the date an entity adopts the amendments.
February 7, 2018
Amendments to IAS 19 “Plan Amendment, Curtailment or Settlement”
The amendments clarify that:
• on amendment, curtailment or settlement of a defined benefit plan,
a Company now uses updated actuarial assumptions to determine its current service cost and net interest for the remainder of the reporting period after the change to the plan; and
• the effect of the asset ceiling is disregarded when calculating past service cost and the gain or loss on settlement. Any change in that effect is recognized in other comprehensive income.