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On Top of Our Game 74
Financial Statements
Notes to Financial Statements
31 March 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(b) ADOPTION OF NEW AND REVISED STANDARDS - On 1 April 2013, the Commission adopted all the
new/revised SB-FRSs, INT SB-FRS and SB-FRS Guidance Notes that are effective from that date and are
relevant to its operations. The adoption of these new/revised SB-FRSs, INT SB-FRS and SB-FRS Guidance
Notes do not result in changes to the Commission’s accounting policies and has no material effect on the
amounts reported for the current or prior years.
Management has considered and is of the view that the adoption of the new/revised SB-FRSs, INT
SB-FRSs and amendments to SB-FRS that are issued as at the date of authorisation of these financial
statements but effective only in future periods will have no material impact on the financial statements of
the Commission in the period of their initial adoption.
(c) FINANCIAL INSTRUMENTS - Financial assets and financial liabilities are recognised on the Commission’s
statement of financial position when the Commission becomes a party to the contractual provisions of
the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and
of allocating interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts or payments (including all fees on points paid or received
that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial instrument, or where appropriate, a shorter period. Income and
expense is recognised on an effective interest basis for debt instruments.
Financial assets
Other receivables
Other receivables are measured at amortised cost using the effective interest method less impairment.
Interest is recognised by applying the effective interest method, except for short-term receivables when
the recognition of interest would be immaterial.
Financial Statements
Notes to Financial Statements
31 March 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(b) ADOPTION OF NEW AND REVISED STANDARDS - On 1 April 2013, the Commission adopted all the
new/revised SB-FRSs, INT SB-FRS and SB-FRS Guidance Notes that are effective from that date and are
relevant to its operations. The adoption of these new/revised SB-FRSs, INT SB-FRS and SB-FRS Guidance
Notes do not result in changes to the Commission’s accounting policies and has no material effect on the
amounts reported for the current or prior years.
Management has considered and is of the view that the adoption of the new/revised SB-FRSs, INT
SB-FRSs and amendments to SB-FRS that are issued as at the date of authorisation of these financial
statements but effective only in future periods will have no material impact on the financial statements of
the Commission in the period of their initial adoption.
(c) FINANCIAL INSTRUMENTS - Financial assets and financial liabilities are recognised on the Commission’s
statement of financial position when the Commission becomes a party to the contractual provisions of
the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and
of allocating interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts or payments (including all fees on points paid or received
that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial instrument, or where appropriate, a shorter period. Income and
expense is recognised on an effective interest basis for debt instruments.
Financial assets
Other receivables
Other receivables are measured at amortised cost using the effective interest method less impairment.
Interest is recognised by applying the effective interest method, except for short-term receivables when
the recognition of interest would be immaterial.
