58
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Amendments to FRS 32 Financial Instruments: Presentation and FRS 107 Financial Instruments: Disclosure – Offsetting
Financial Assets and Financial Liabilities
The amendments to FRS 32 clarify existing application issues relating to the offsetting requirements. Specifically, the
amendments clarify the meaning of ‘currently has a legal enforceable right of set-off’ and ‘simultaneous realisation and
settlement’.
The amendments to FRS 107 require entities to disclose information about rights of set-off and related arrangements
(such as collateral posting requirements) for financial instruments under an enforceable master netting agreement or
similar arrangement.
The amendments to FRS 107 are required for annual periods beginning on or after January 1, 2013 and interim periods
within those annual periods. The disclosures should be provided retrospectively for all comparative periods. However,
the amendments to FRS 32 are effective for annual periods beginning on or after January 1, 2014, with retrospective
application required.
The management anticipates that the application of amendments to FRS 107 will result in more extensive
disclosures on offsetting financial assets and financial liabilities. However, the management is still evaluating the impact
of the amendments to FRS 32 on the financial assets and liabilities that have been set-off on the statement of
financial position.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
