Page 44 - 00_See Hup Seng_Cover.indd

SEE HUP SENG LIMITED
Annual Report 2012
42
Notes to the Financial Statements
31 DECEMBER 2012
2 Significant Accounting Policies (Continued)
(a) Basis of Preparation (Continued)
New or revised FRS that are issued but not yet effective (Continued)
FRS 113 Fair Value Measurement
FRS 113 Fair Value Measurement provides guidance on how to measure fair values including those for
both financial and non-financial items and introduces significantly enhanced disclosures about fair values.
It does not address or change the requirements on when fair values should be used. When measuring
fair value, an entity is required to use valuation techniques that maximise the use of relevant observable
inputs and minimise the use of unobservable inputs. It establishes a fair value hierarchy for doing this.
This standard is to be applied for annual periods beginning on or after 1 January 2013. This standard
will not have any impact on the financial performance or the financial position of the Group and Company
when implemented.
Amendments to FRS 107 – Disclosures – Offsetting Financial Assets and Financial Liabilities and
Amendments to FRS 32 – Offsetting Financial Assets and Financial Liabilities
Where financial assets and liabilities are:
(a) Offset in the statement of financial position; or
(b) Subject to master netting arrangements or similar agreements,
An entity should comply with the disclosure requirements under the amendments to FRS 107 –
Disclosures – Offsetting Financial Assets and Financial Liabilities.
In addition, the amendments in FRS 32 – Offsetting Financial Assets and Financial Liabilities clarifies
that an entity currently has a legally enforceable right of set-off if that right to set-off is:
(a) Not contingent on a future event; and
(b) Legally enforceable in all of the following circumstances:
(i) the normal course of business;
(ii) the event of default; and
(iii) the event of insolvency or bankruptcy of an entity and all of the counterparties.
An entity shall apply amendments to FRS 107 – Disclosures – Offsetting Financial Assets and Financial
Liabilities for annual periods beginning on or after 1 January 2013 while amendments to FRS 32 are
effective for annual periods beginning on or after 1 January 2014.