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AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
NOTES TO
FINANCIAL STATEMENTS
30 June 2015
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
At the date of authorisation of these financial statements, the following FRSs, improvements to FRSs and
amendments to FRS that are relevant to the Company were issued but not effective:
•
FRS 109
Financial Instruments
3
•
FRS 115
Revenue from Contracts with Customers
2
•
Amendments to FRS 1
Presentation of Financial Statements: Disclosure Initiative
1
•
Amendments to FRS 27
Separate Financial Statements: Equity Method in Separate Financial Statements
1
•
Amendments to FRS 16
Property, Plant and Equipment
and FRS 38
Intangible Assets: Clarification of
Acceptable Methods of Depreciation and Amortisation
1
•
Improvements to Financial Reporting Standards (November 2014)
1
1 Applies to annual periods beginning on or after 1 January 2016, with early application permitted.
2 Applies to annual periods beginning on or after 1 January 2017, with early application permitted.
3 Applies to annual periods beginning on or after 1 January 2018, with early application permitted.
Consequential amendments were also made to various standards as a result of these new/revised standards.
Management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRS in future
periods will not have a material impact on the financial statements of the Group and of the Company in the
period of their initial adoption except for the following:
FRS 115
Revenue from Contracts with Customers
In November 2014, FRS 115 was issued which establishes a single comprehensive model for entities to use
in accounting for revenue arising from contracts with customers. FRS 115 will supersede the current revenue
recognition guidance including FRS 18
Revenue
, FRS 11
Construction Contracts
and the related Interpretations
when it becomes effective.
The core principle of FRS 115 is that an entity should recognise revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to
be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach
to revenue recognition:
•
Step 1: Identify the contract(s) with a customer
•
Step 2: Identify the performance obligations in the contract
•
Step 3: Determine the transaction price
•
Step 4: Allocate the transaction price to the performance obligations in the contract
•
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.
