Page 59 - Bauxite Resources Annual Report 2014

Annual Report 2014 Bauxite Resources | 57
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
57 Bauxite Resources Annual Report 2014
These Standards are applicable retrospectively and include revised requirements for the classification and measurement of
financial instruments, as well as recognition and de-recognition requirements for financial instruments.
The key changes made to accounting requirements include:
– simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value;
– simplifying the requirements for embedded derivatives;
– removing the tainting rules associated with held-to-maturity assets;
– removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost;
– allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that
are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on
investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument;
These Standards were mandatorily applicable for annual reporting periods commencing on or after 1 January 2013. However,
AASB 2012–6: Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition
Disclosures (issued September 2012) defers the mandatory application date of AASB 9 from 1 January 2013 to 1 January 2015.
In light of the change to the mandatory effective date, the Group is expected to adopt AASB 9 and AASB 2010–7 for the annual
reporting period ending 30 June 2016. Although the directors anticipate that the adoption of AASB 9 and AASB 2010–7 may
have a significant impact on the Group’s financial instruments, it is impracticable at this stage to provide a reasonable estimate
of such impact.
AASB 12 contains the disclosure requirements applicable to entities that hold an interest in a subsidiary, joint venture, joint
operation or associate. AASB 12 also introduces the concept of a “structured entity”, replacing the “special purpose entity”
concept currently used in Interpretation 112, and requires specific disclosures in respect of any investments in unconsolidated
structured entities. This Standard will affect disclosures only and is not expected to significantly impact the Group’s financial
statements.
To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued. The
revisions made to AASB 127 and AASB 128 are not expected to significantly impact the Group’s financial statements.
AASB 13: Fair Value Measurement and AASB 2011–8: Amendments to Australian Accounting Standards arising from AASB 13
(applicable for annual reporting periods commencing on or after 1 January 2013).
AASB 13 defines fair value, sets out in a single Standard a framework for measuring fair value, and requires disclosures about
fair value measurement.
AASB 13 requires:
• inputs to all fair value measurements to be categorised in accordance with a fair value hierarchy; and
• enhanced disclosures regarding all assets and liabilities (including, but not limited to, financial assets and financial liabilities)
to be measured at fair value.
These Standards are expected to result in more detailed fair value disclosures, but are not expected to significantly impact the
amounts recognised in the Group’s financial statements.
AASB 2011–4: Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure
Requirements (applicable for annual reporting periods beginning on or after 1 July 2013).
This Standard makes amendments to AASB 124: Related Party Disclosures to remove the individual key management
personnel disclosure requirements (including paras Aus29.1 to Aus29.9.3). These amendments serve a number of purposes,
including furthering trans-Tasman convergence, removing differences from IFRSs, and avoiding any potential confusion with the
equivalent Corporations Act 2001 disclosure requirements.
This Standard is not expected to significantly impact the Group’s financial report as a whole because:
• some of the disclosures removed from AASB 124 will continue to be required under s 300A of the Corporations Act, which
is applicable to the Group; and
• AASB 2011–4 does not affect the related party disclosure requirements in AASB 124 applicable to all reporting entities,
and some of these requirements require similar disclosures to those removed by AASB 2011–4.
AASB 119: Employee Benefits (September 2011) and AASB 2011–10: Amendments to Australian Accounting Standards arising
from AASB 119 (September 2011) (applicable for annual reporting periods commencing on or after 1 January 2013).
These Standards introduce a number of changes to the presentation and disclosure of defined benefit plans, including: