Cathay Pacific 2015 Annual Report Download - page 99

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Annual Report 2015
97
32. Impact of further new accounting standards
HKICPA has issued new and revised standards which become effective for accounting periods beginning on or after
1st January 2015 and which are not adopted in the financial statements.
HKFRS 9 “Financial Instruments” is relevant to the Group and becomes effective for accounting periods beginning on or
after 1st January 2018. The standard requires financial assets to be classified into two measurement categories: those
measured at fair value and those measured at amortised cost. The Group has yet to assess the full impact of the
new standard.
HKFRS 15 “Revenue from Contracts with Customers” is relevant to the Group and becomes effective for accounting
periods beginning on or after 1st January 2018. The standard deals with revenue recognition and establishes principles
for reporting information to users of financial statements about the nature, amount, timing and uncertainty of revenue
and cash flows arising from an entity’s contracts with customers. The Group has yet to assess the full impact of the
new standard.
The International Financial Reporting Standard (“IFRS”) 16 “Leases” becomes effective for accounting periods beginning
on or after 1st January 2019. The standard eliminates the lessee’s classification of leases as either operating leases or
finance leases as is required by International Accounting Standard 17 “Leases” and, instead, introduces a single lease
accounting model. Applying that model, a lessee is required to recognise assets and liabilities for all leases with a term
of more than 12 months, unless the underlying asset is of low value, and depreciation of lease assets separately from
interest on lease liabilities in the statement of profit or loss. We expect that the HKICPA will issue the equivalent standard
soon to maintain convergence with IFRSs and such future standard will be relevant to the Group. The Group has yet to
assess the full impact of the new standard.
33. Event after the reporting period
InDecember2015,theGeneralCourtannulledtheEuropeanCommission’sfindingagainsttheCompanyinNovember
2010.ThefineofEuros57.12millionpreviouslyimposedontheCompanyhadbeenrefundedtotheCompanyinearly
February 2016 as disclosed in note 28(e) to the financial statements. The refund had been duly recognised in 2015 profit.
Notes to the Financial Statements Supplementary Information