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SEE HUP SENG LIMITED
Annual Report 2012
43
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)
Improvements to FRSs 2012
Amendments to FRS 1 Presentation of Financial Statements
The amendment clarifies the disclosure requirements for comparative information when an entity provides
a third balance sheet either as required by FRS 8 Accounting Policies, Changes in Accounting Estimates
and Errors or voluntarily.
When an entity produces an additional balance sheet as required by FRS 8, the balance sheet should
be as of the date at the beginning of the preceding period – that is, the opening position. No notes are
required to support this balance sheet. Where management provides additional comparative information
voluntarily, it should present the supporting notes to these additional statements. This amendment is
effective for financial periods beginning on or after 1 January 2013.
Amendments to FRS 16 Property, Plant and Equipment
The amendments clarify that spare parts and servicing equipment are classified as property, plant and
equipment rather than inventory when they meet the definition of property, plant and equipment. This
amendment is effective for financial periods beginning on or after 1 January 2013.
Amendments to FRS 32 Financial Instruments: Presentation
The amendment clarifies the treatment of income tax relating to distributions and transaction costs.
Income tax related to distributions is recognised in the income statement, and income tax related to the
costs of equity transactions is recognised in equity. This amendment is effective for financial periods
beginning on or after 1 January 2013.
(b) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group
and the revenue can be reliably measured. The following specific recognition criteria must also be met
before revenue is recognised:
(i) Sale of goods
Revenue on the sale of goods is recognised when the significant risks and rewards of ownership
of the goods have been transferred to the customer. Revenue is not recognised to the extent
where there are significant uncertainties regarding recovery of the consideration due, associated
costs or the possible return of goods.