Page 60 - Bauxite Resources Annual Report 2014

58 | Bauxite Resources Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
Annual Report 2014 Bauxite Resources 58
• removal of the “corridor” approach from AASB 119, thereby requiring entities to recognise all changes in a net defined
benefit liability/(asset) when they occur; and
• disaggregation of changes in a net defined benefit liability/(asset) into service cost, net interest expense and re-
measurements and recognition of:
• service cost and net interest expense in profit or loss; and
• re-measurements in other comprehensive income.
AASB 119 (September 2011) also includes changes to the criteria for determining when termination benefits should be
recognised as an obligation.
These Standards are not expected to impact the Group’s financial statements as the Group currently has no defined benefit
plans.
AASB 2012–2: Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial
Liabilities (applicable for annual reporting periods commencing on or after 1 January 2013).
AASB 2012–2 principally amends AASB 7: Financial Instruments: Disclosures to require entities to include information that will
enable users of their financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-
off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position.
This Standard is not expected to significantly impact the Group’s financial statements.
AASB 2012–3: Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities
(applicable for annual reporting periods commencing on or after 1 January 2014).
This Standard adds application guidance to AASB 132: Financial Instruments: Presentation to address potential inconsistencies
identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally
enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.
This Standard is not expected to significantly impact the Group’s financial statements.
AASB 2012–5: Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 (applicable for
annual reporting periods commencing on or after 1 January 2013).
This Standard amends a number of Australian Accounting Standards as a consequence of the issuance of Annual
Improvements to IFRSs 2009–2011 Cycle by the International Accounting Standards Board, including:
• AASB 1: First-time Adoption of Australian Accounting Standards to clarify the requirements in respect of the application of
AASB 1 when an entity discontinues and then resumes applying Australian Accounting Standards;
• AASB 101: Presentation of Financial Statements and AASB 134: Interim Financial Reporting to clarify the requirements for
presenting comparative information;
• AASB 116: Property, Plant and Equipment to clarify the accounting treatment of spare parts, stand-by equipment and
servicing equipment;
• AASB 132 and Interpretation 2: Members’ Shares in Co-operative Entities and Similar Instruments to clarify the accounting
treatment of any tax effect of a distribution to holders of equity instruments; and
• AASB 134 to facilitate consistency between the measures of total assets and liabilities an entity reports for its segments in
its interim and annual financial statements.
This Standard is not expected to significantly impact the Group’s financial statements.
(v) Critical accounting estimates and judgements
The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are: