CFSL - Annual report 2018

64 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018 EXPLANATORY NOTES 30 SEPTEMBER 2018 2. ACCOUNTING POLICIES (CONT’D) 2.5 New or revised standards and interpretations Effective for accounting period beginning on or after New or revised standards IFRS 9 Financial Instruments 1 January 2018 IFRS 15 Revenue from Contracts with Customers 1 January 2018 IFRS 16 Leases 1 January 2019 IFRS 17 Insurance contracts 1 January 2022 Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Effective date deferred indefinitely IFRS 2 Classification and Measurement of Share·based Payment Transactions · Amendments to IFRS 2 1 January 2018 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts - Amendments to IFRS 4 1 January 2018 Transfers of Investment Property (Amendments to IAS 40) 1 January 2018 IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 January 2018 IFRS 1 First-time Adoption of International Financial Reporting Standards - Deletion of short-term exemptions for first-time adopters 1 January 2018 IAS 28 Investments in Associates and Joint Ventures - Clarification that measuring investees at fair value through profit or loss is an investment - by - investment choice 1 January 2018 IFRIC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Prepayment Features with Negative Compensation - Amendments to IFRS 9 1 January 2019 Long-term Interests in Associates and Joint Ventures - Amendments to IAS 28 1 January 2019 Plan Amendment, Curtailment or Settlement - Amendments to IAS 19 1 January 2019 AIP IFRS 3 Business Combinations - Previously held Interests in a joint operation 1 January 2019 AIP IFRS 11 Joint Arrangements - Previously held Interests in a joint operation 1 January 2019 AIP IAS 12 Income Taxes - Income tax consequences of payments on financial instruments classified as equity 1 January 2019 AIP IAS 23 Borrowing Costs - Borrowing costs eligible for capitalisation 1 January 2019 The above new standards and amendments to existing standards issued but not yet effective are not expected to have a significant impact on the Group except for IFRS 9, IFRS 15 and IFRS 16 as listed below. (i) IFRS 9 Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. The new standard includes revised guidance on the classification and measurement of financial assets, including impairment and supplements the new hedge accounting principles published in 2013. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. The Group plans to adopt the new standard on the required effective date i.e. October 1, 2018. The classification and measurement and impairment requirements are applied using the modified retrospective approach by adjusting the opening balance at the date of initial application, with no requirement to restate comparative periods.