New standards, amendments and interpretations

The following amendment and interpretations are effective for the first time for the year ended June 2009:

• Amendments to IAS 39, Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures – Reclassification of Financial Assets
  The amendments introduces the possibility of reclassifications for certain financial assets previously classified as ‘held for trading’ or ‘available for sale’ to another category under limited circumstances. Various disclosures are required where a reclassification has been made. Derivatives and assets designated as ‘at fair value through profit or loss’ under the fair value option are not eligible for this reclassification. This interpretation is effective for periods beginning on or after 1 July 2008. This amendment will not affect the Group.
  
  
• IFRIC 12, Service Concession Arrangements
  IFRIC 12 addresses how service concession operators should apply existing IFRSs to account for the obligations they undertake and rights they receive in service concession arrangements. This interpretation is effective for periods beginning on or after 1 January 2008. This amendment will not affect the Group.
  
  
• IFRIC 13, Customer Loyalty Programmes
  IFRIC 13 addresses accounting by entities that grant loyalty award credits to customers who buy other goods or services. Specifically, it explains how such entities should account for their obligations to provide free or discounted goods or services to customers who redeem award credits. This interpretation is effective for periods beginning on or after 1 July 2008. This amendment will not affect the Group.
  
  
• IFRIC 14, IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
  IFRIC 14 provides general guidance on how to assess the limit in IAS 19 on the amount of the surplus that can be recognised as an asset. It also explains how the pension asset or liability may be affected when there is a statutory or contractual minimum funding requirement. This interpretation is effective for periods beginning on or after 1 January 2008. This amendment will not affect the Group.
  
  The Group has early adopted the following standards and amendments to existing standards which have been published but are not mandatory for the Group’s accounting periods beginning on or after 1 January 2009. The Group does not intend early-adopting any of the other standards and interpretations as stated above.
  
  
• IAS 23, Borrowing Costs (Revised)
  The amendment requires an entity to capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of the asset. The Group is currently capitalising borrowing costs on all qualifying assets.
  
  
• IFRS 8, Operating Segments and the amendment to IFRS 8 included in improvements to IFRSs (April 2009)
  IFRS 8 replaces IAS 14, Segment reporting, and aligns segment reporting with the requirements of the United States standard SFAS 131, Disclosures about segments of an enterprise and related information. The new standard requires a ‘management approach’, under which segment information is presented on the same basis as that used for internal reporting purposes.
  
  The impact of this statement on the segmental analysis is minor and limited to changes to reported segments to be consistent with the internal reporting provided to the chief operating decision maker. Comparative figures for 2008 have been restated. The adoption of IFRS 8 has had no impact on goodwill allocation or impairment testing.
  
  
• IAS 1, Presentation of Financial Statements (Revised)
  The revised standard will prohibit the presentation of items of income and expenses (that is, ‘non-owner changes in equity’) in the statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner changes in equity.
  
  The effective date of this revised standard is on periods commencing on or after 1 January 2009. Comparative figures for 2008 have been restated.
  
  The following accounting standards, amendments and interpretations, that are not mandatory for the year ended June 2009 and have been published prior to the date of signature of this report:
  
  
• IFRS 1 (Amendment), First-time Adoption of IFRS and IAS 27, Consolidated and Separate Financial Statements
  The amendment allows first-time adopters to use a deemed cost of either fair value or the carrying amount under previous accounting practice to measure the initial cost of investments in subsidiaries, joint ventures and associates in the separate financial statements. The amendment also removed the definition of the cost method from IAS 27 and replaced it with a requirement to present dividends as income in the separate financial statements of the investor.
  
  This amendment will not have any impact on the Group’s financial statements
  
  The amendment is effective for financial years beginning on or after 1 January 2009.
  
  
• IFRS 2, Share-based Payment: Vesting Conditions and Cancellations (Amendment)
  This amended standard deals with vesting conditions and cancellations. The Group will apply this standard for annual periods beginning on or after 1 January 2009, which is the standards effective date. It is not expected to have an impact on the Group’s financial statements.
  
  
• IFRS 3, Business Combinations (Revised)
  The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through the income statement. There is a choice on an acquisition-byacquisition basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition related costs should be expensed.
  
  The Group will apply this revised standard prospectively to all business combinations beginning on or after 1 July 2009.
  
  
• IAS 27, Consolidated and Separate Financial Statements (Revised)
  The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is re-measured to fair value, and a gain or loss is recognised in profit or loss.
  
  The Group will apply this revised standard prospectively to transactions with non-controlling interests from periods beginning on or after 1 January 2010.
  
  
• IAS 32, Financial Instruments: Presentation and IAS 1, Presentation of Financial Statements, Puttable Financial Instruments and Obligations Arising on Liquidation (Amendment)
  The amendments require entities to classify the following types of financial instruments as equity, provided they have particular features and meet specific conditions:
  
  • puttable financial instruments; and
    
  • instruments, or components of instruments, that impose on the entity an obligation to deliver to either party a pro rata share of the net assets of the entity only on liquidation.
  Additional disclosures are required about the instruments affected by the amendments.
  
  This amendment will have no impact on the Group’s financial statements.
  
  The amendment is effective for all periods beginning on or after 1 January 2009.
  
  
• IFRIC 15, Agreements for the Construction of Real Estate
  IFRIC 15 addresses diversity in accounting for real estate sales. IFRIC 15 clarifies how to determine whether an agreement is within the scope of IAS 11 – Construction Contracts or IAS 18 – Revenue and when revenue from construction should be recognised. The guidance replaces example 9 in the appendix to IAS 18.
  
  This interpretation is not relevant to the Group’s operations. The effective date of this interpretation is from periods beginning on or after 1 January 2009.
  
  
• IFRIC 16, Hedges of a Net Investment in a Foreign Operation
  IFRIC 16 provides guidance on identifying the foreign currency risks that qualify as a hedged risk (in the hedge of a net investment in a foreign operation). It secondly provides guidance on where, within a group, hedging instruments that are hedges of a net investment in a foreign operation can be held to qualify for hedge accounting. Thirdly, it provides guidance on how an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item. This interpretation is effective for periods beginning on or after 1 October 2008. This amendment will not affect the Group.
  
  
• IFRIC 17, Distributions of Non-cash Assets to Owners
  IFRIC 17 applies to the accounting for distributions of noncash assets (commonly referred to as dividends in specie) to the owners of the entity. The interpretation clarifies that: a dividend payable should be recognised when the dividend is appropriately authorised and is no longer at the discretion of the entity; an entity should measure the dividend payable at the fair value of the net assets to be distributed; and an entity should recognise the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss. This interpretation is effective for periods beginning on or after 1 July 2009. This amendment will not affect the Group.
  
  
• IFRIC 18, Transfers of assets from customers
  IFRIC 18 clarifies the accounting treatment for transfers of property, plant and equipment received from customers. This interpretation applies to agreements with customers in which the entity receives cash from a customer when that amount of cash must be used only to construct or acquire an item of property, plant and equipment and the entity must then use the item of property, plant and equipment either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods and services, or to do both. This interpretation is effective for periods beginning on or after 1 July 2009. This amendment will not affect the Group.
  

Improvements to IFRS

These amendments are part of the IASB’s annual improvement project published in May 2008. These amendments are applicable for periods starting on or after 1 January 2009. These amendments would have no material effect on the financial statements of the Group. The annual improvements project provides a vehicle for making non-urgent but necessary amendments to IFRSs. Some amendments involve consequential amendments to other IFRSs. The following standards were amended:

• IFRS 5, Non-current assets held for sale and discontinued operations (amendment);
• IAS 1, Presentation of financial statements (amendment);IAS 16, Property, plant and equipment (amendment);
• IAS 19, Employee benefits (amendment);
• IAS 23, Borrowings costs (amendment);
• IAS 28, Investment in associates (amendment), and consequential amendments to IAS 32, Financial instruments: Presentation and IFRS 7, Financial instruments: Disclosures;
• IAS 29, Financial reporting in hyperinflationary economies (amendment);
• IAS 31, Interest in joint ventures, and consequential amendments to IAS 32, Financial instruments: Presentation and IFRS 7, Financial instruments: Disclosures;
• IAS 36, Impairment of assets (amendment);
• IAS 38, Intangible assets (amendment);
• IAS 39, Financial instruments: Recognition and measurement (amendment);
• IAS 40, Investment property (amendment); and
• IAS 41, Agriculture (amendment).