LensCrafters 2011 Annual Report Download - page 200

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IFRS 12 – Disclosure of Interests in Other Entities, issued in May 2011. IFRS 12 provides
expanded disclosures about entity’s interests in subsidiaries, associates and joint
arrangements. IFRS 12 moves away from requiring a “boiler-plate” list of disclosures to
a more principles based approach. IFRS 12 applies only to the consolidated accounts.
Disclosures relating to separate accounts are addressed in the revised IAS 27 –
Separate Financial Statements. IFRS 12 also provides a new set of disclosures related to
unconsolidated structured entities. The new disclosures should enable users to understand
the nature and extent of the entity’s interests in unconsolidated structured entities and
to evaluate the nature of risks associated with the structured entity. IFRS 12 provides a
definition of a structured entity. IFRS 12 does not require disclosures for the interests in
the other unconsolidated entities, which are outside of the definition of a structured entity.
The standard is effective for annual periods beginning on or after January 1, 2013. Earlier
application is encouraged. An entity can choose to provide any of the disclosures in IFRS 12
without being forced to adopt IFRS 10, IFRS 11, IFRS 12, IAS 27 (revised) or IAS 28 (revised).
The standard has not been endorsed at the date the present financial statements were
authorized for issue. The Group has not early adopted and is assessing the full impact of
adopting IFRS 12.
IFRS 11 – Joint Arrangements, issued in May 2011. IFRS 11 supersedes IAS 31 and SIC 13 –
Jointly Controlled Entities – Non-Monetary Contributions by Venturers.
IFRS 11 mainly addresses two aspects of IAS 31: a) the structure of the arrangement was
the only determinant of the accounting and b) that an entity had a choice of accounting
treatment for interests in jointly controlled entities. Based on the new standard the ‘types’
of joint arrangements are reduced to two: joint operations and joint ventures. In a joint
operation the parties that have joint control have rights to the assets and obligations for
the liabilities. In a joint venture the parties that have joint control have rights to the net
assets of the arrangements. The policy choice in IAS 31 of proportionate consolidation
for jointly controlled entities has been eliminated while equity accounting has been made
mandatory for participants in joint ventures. Entities that participate in joint operations
are required to recognise their share of the assets, liabilities, revenues and expenses in
accordance with applicable IFRS.
The new standard is effective for annual periods beginning on or after January 1, 2013.
Earlier application is permitted so long as IFRS 10, IFRS 12, IAS 27 (2011) and IAS 28 (2011)
are adopted at the same time. The standard has not been endorsed at the date the present
financial statements were authorized for issue. The Group believes that IFRS 11 will not
have a material impact on the Group consolidated financial statements.
IFRS 13 – Fair value measurement, issued in May 2011. IFRS 13 sets out a single IFRS
framework for measuring fair value and provides comprehensive guidance on how to
measure the fair value of both financial and non-financial assets and liabilities. IFRS 13
applies when another IFRS requires or permits fair value measurement or disclosures
about fair value measurements, thus it does not set out requirements on “when to” apply
fair value measurement. IFRS 13 becomes effective on January 1, 2013. The standard has
not been endorsed at the date the present financial statements were authorized for issue.
The Group has not early adopted and has not yet assessed the full impact of adopting
IFRS 13.
Amendments to IAS 1 – Presentation of Items of Other Comprehensive Income, issued in