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Food Empire Holdings Limited Annual Report 2013
73
2. Summary of significant accounting policies (cont’d)
2.3
Standards issued but not yet effective
The Group has not adopted the following standards and interpretations that have been issued but not yet effective:
Effective for annual
periods beginning
Description
on or after
Revised FRS 27
Separate Financial Statements
1 January 2014
Revised FRS 28
Investments in Associates and Joint Ventures
1 January 2014
FRS 110
Consolidated Financial Statements
1 January 2014
FRS 111
Joint Arrangements
1 January 2014
FRS 112
Disclosure of Interests in Other Entities
1 January 2014
Amendments to FRS 32
Offsetting Financial Assets and Financial Liabilities
1 January 2014
The directors expect that the adoption of the standards and interpretations above will have no material impact on the financial statements
in the period of initial application. The nature of the impending changes in accounting policy on adoption of the FRS 111, Revised FRS 28
and FRS 112 are described below.
FRS 111
Joint Arrangements
and Revised FRS 28
Investments in Associates and Joint Ventures
FRS 111
Joint Arrangements
and the Revised FRS 28
Investments in Associates and Joint Ventures
are effective for financial periods
beginning on or after 1 January 2014.
FRS 111 classifies joint arrangements either as joint operations or joint ventures. Joint operation is a joint arrangement whereby the parties
that have rights to the assets and obligations for the liabilities whereas joint venture is a joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the arrangement.
FRS 111 requires the determination of joint arrangement’s classification to be based on the parties’ rights and obligations under the
arrangement, with the existence of a separate legal vehicle no longer being the key factor. FRS 111 disallows proportionate consolidation
and requires joint ventures to be accounted for using the equity method. The revised FRS 28 was amended to describe the application of
equity method to investments in joint ventures in addition to associates.
notes to the financial statements
For the year ended 31 December 2013