Notes to the
Financial Statements
2
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES CONTINUED¡
Standards and amendments which are not yet e
ective
At the date of authorisation of the financial statements, the following standards and amendments were in issue and relevant
to the Group but not yet e
ective and have not been early adopted by the Group:
Amendments to HKAS 27
(1)
Equity Method in Separate Financial Statements
Annual Improvements to HKFRSs 2012 – 2014 Cycle
(1)
Improvements to HKFRSs
Amendments to HKAS 1
(1)
Presentation of Financials Statements: Disclosure Initiative
Amendments to HKFRS 10, HKFRS 12 and HKAS 28
(1)
Investment Entities: Applying the Consolidation Exception
HKFRS 15
(2)
Revenue from Contracts with Customers
HKFRS 9 (2014)
(2)
Financial Instruments
Amendments to HKFRS 10 and HKAS 28
(3)
Sale or Contribution of Assets between an Investor and its
Associate and Joint Venture
(1) E
ective for annual periods beginning 1 January 2016
(2) E
ective for annual periods beginning 1 January 2018
(3) New e
ective date to be determined
HKFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial
liabilities. The complete version of HKFRS 9 was issued in July 2014. It replaces the guidance in HKAS 39 that relates to the
classification and measurement of financial instruments. HKFRS 9 retains but simplifies the mixed measurement model
and establishes three primary measurement categories for financial assets: amortised cost, fair value through other
comprehensive income and fair value through profit and loss. The basis of classification depends on the entity’s business
model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are required
to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value
in other comprehensive income not recycling. There is now a new expected credit losses model that replaces the incurred
loss impairment model used in HKAS 39. For financial liabilities, there were no changes to classification and measurement
except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair
value through profit or loss. HKFRS 9 relaxes the requirements for hedge e
ectiveness by replacing the bright line hedge
e
ectiveness tests. It requires an economic relationship between the hedged item and hedging instrument and for the
‘hedged ratio’ to be the same as the one management actually use for risk management purposes. Contemporaneous
documentation is still required but is di
erent to that currently prepared under HKAS 39.
HKFRS 15, ‘Revenue from contracts with customers’ deals with revenue recognition and establishes principles for reporting
useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash
flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good
or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces
HKAS 18 ‘Revenue’ and HKAS 11 ‘Construction contracts’ and related interpretations.
The Group is assessing the full impact of these new or revised HKFRS, certain of them will give rise to change in presentation,
disclosure and measurements of certain items in the financial statements. It is not expected to have material impact on
the Group.
077
ANNUAL REPORT 2015
HUTCHISON PORT HOLDINGS TRUST
