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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Annual Improvements to FRS 2012
The Annual Improvements include a number of amendments to various FRSs. The amendments are effective for annual
periods beginning on or after January 1, 2013. The amendments include:
• Amendments to FRS 16 Property, Plant and Equipment; and
• Amendments to FRS 32 Financial Instruments: Presentation
Amendments to FRS 16 clarify that spare parts, stand-by equipment and servicing equipment should be classified
as property, plant and equipment when they meet the definition of property, plant and equipment in FRS 16 or as
inventory if otherwise. Management does not anticipate that the amendments to FRS 16 will have a significant effect
on the financial statements.
Amendments to FRS 32 clarify that income tax relating to distributions to holders of an equity instrument and to
transaction costs of an equity transaction should be accounted for in accordance with FRS 12 Income Taxes.
Management anticipates that the amendments will have no effect on the financial statements as the Group has already
adopted this treatment.
BASIS OF CONSOLIDATION
- The consolidated financial statements incorporate the financial statements of the
Co-operative and entities controlled by the Co-operative (its subsidiaries). Control is achieved where the Co-operative
has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of
comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
