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Annual Report 2014
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2) New financial reporting standards and revised accounting standards, revised financial reporting standards
are effective on 1 January 2015. These standards are relevant to the group and are not early adopted:
TAS 19 (revised 2014)
Employee benefits
TAS 28 (revised 2014)
Investments in associates and joint ventures
TFRS 10
Consolidated financial statements
TFRS 13
Fair value measurement
TFRIC 14 (revised 2014)
TAS 19 - The limit on a defined benefit asset,
minimum funding requirements
and their interaction
TAS 19 (revised 2014), the key changes are (a)
actuarial gains and losses are renamed ‘remeasurements’
and will be recognised immediately in ‘other comprehensive
income’ (OCI). Actuarial gains and losses will no longer
be deferred using the corridor approach or recognised
in profit or loss; and (b) past-service costs will be
recognised in the period of a plan amendment;
unvested benefits will no longer be spread over a
future-service period. The Group has not assessed
the full impact of the revision yet.
TAS 28 (revised 2014) provide the requirements
for investment in associates and joint ventures
accounted by equity method. The Group has not
assessed the full impact of the revision yet.
TFRS 10 has a single definition of control and
supersedes the principles of control and consolidation
included within the original TAS 27, ‘Consolidated and
separate financial statements’. The standard sets out
the requirements for when an entity should prepare
consolidated financial statements, defines the principles
of control, explains how to apply the principles of
control and explains the accounting requirements for
preparing consolidated financial statements. The key
principle in the new standard is that control exists,
and consolidation is required, only if the investor
possesses power over the investee, has exposure to
variable returns from its involvement with the investee
and has the ability to use its power over the investee
to affect its returns. The Group has not assessed the
full impact of the revision yet.
TFRS 13 aims to improve consistency and reduce
complexity by providing a precise definition of fair
value and a single source of fair value measurement
and disclosure requirements for use across TFRSs. The
Group has not assessed the full impact of the revision
yet.
TFRIC 14 (Revised 2014), this interpretation
applies to all post-employment defined benefits and
other long-term employee benefits. For the purpose of
this interpretation, minimum funding requirements are
any requirements to fund a post-employment or other
long-term benefit plan. This interpretation explains
how the pension asset or liability may be affected
by a statutory or contractual minimum funding
requirement. The Group has not assessed the full
impact of the revision yet.
2.3 Investment in subsidiaries,
jointly-controlled entity
and associates
2.3.1 Subsidiaries
Subsidiaries are all the entities over which the SET
has the power to govern the financial and operating
policies. Subsidiaries are consolidated from the date
on which control is transferred to the SET and are
no longer consolidated from the date on which that
control ceases.
All related party transactions, balances and
unrealised gains and losses on transactions between
the SET and its subsidiaries have been eliminated.
In the SET’s financial statements, investments in
subsidiaries are accounted for using the cost method.