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Straco Corporation Limited • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
2
Basis of preparation (cont’d)
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial
year are included in the following notes:
Note 4
–
Estimation of useful lives of property, plant and equipment
Note 5
–
Estimation of useful lives of investment property
Note 6
–
Measurement of recoverable amounts of investments in subsidiaries
Note 8
–
Measurement of recoverable amounts of intangible assets
Note 10
–
Assessment of recoverability of trade and other receivables
Note 14
–
Measurement of Straco share option scheme
Note 21
–
Estimation of provisions for current and deferred taxation
2.5 Changes in accounting policies
(i)
Offsetting of financial assets and financial liabilities
Under the Amendments to FRS 32
Financial Instruments
:
Presentation – Offsetting Financial Assets and Financial Liabilities
, to qualify for
offsetting, the right to set off a financial asset and a financial liability must not be contingent on a future event and must be enforceable both in
the normal course of business and in the event of default, insolvency or bankruptcy of the entity and all counterparties.
Notwithstanding the above, the change had no significant impact on the measurements of the Group’s assets and liabilities.
(ii) Subsidiaries
As a result of FRS 110
Consolidated Financial Statements
, the Group has changed its accounting policy for determining whether it has control
over and consequently whether it consolidates its investees. FRS 110 introduces a new control model that focuses on whether the Group has
power over an investee, exposure or rights to variable returns from its involvement with the investee and ability to use its power to affect those
returns. In accordance with the transitional provisions of FRS 110, the Group reassessed the control conclusion for its investees at 1 January
2014.
Notwithstanding the above, the change had no significant impact on the Group’s subsidiaries.
