Singapore Airlines 2011 Annual Report Download - page 102

SINGAPORE AIRLINES
100
NOTES TO THE FINANCIAL STATEMENTS
31 March 2011
2 Summary of Significant Accounting Policies (continued)
(b) New and revised standards (continued)
The Group has not adopted the following standards and interpretations that have been issued but not
yet effective:
Description Effective for annual periods
beginning on or after
Improvements to FRSs issued in 2010 1 January 2011
(unless otherwise stated)
INT FRS 119 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
Revised FRS 24 Related Party Disclosures 1 January 2011
Amendments to INT FRS 114 Prepayments of
a Minimum Funding Requirement 1 January 2011
Amendments to FRS 107 Financial Instruments:
Disclosures – Transfer of Financial Assets 1 July 2011
Amendments to FRS 12 Deferred Tax – Recovery of Underlying Assets 1 January 2012
Except for the revised FRS 24, the management expects that the adoption of the other standards and
interpretations above will have no material impact on the financial statements in the period of initial
application. The nature of the impending changes in accounting policy on adoption of the revised FRS
24 is described below.
Revised FRS 24 Related Party Disclosures
The revised FRS 24 clarifies the definition of a related party to simplify the identification of such
relationships and to eliminate inconsistencies in its application. The revised FRS 24 expands the
definition of a related party and would treat two entities as related to each other whenever a person
(or a close member of that person’s family) or a third party has control or joint control over the entity,
or has significant influence over the entity. The revised standard also introduces a partial exemption of
disclosure requirements for government-related entities. The Group is currently determining the impact
of the changes to the definition of a related party on the disclosure of related party transactions. As this
is a disclosure standard, it will have no impact on the financial position or financial performance of the
Group when implemented in 2011.
(c) Basis of consolidation
The consolidated financial statements comprise the separate financial statements of the Company
and its subsidiary companies as at the end of the reporting period. The financial statements of the
subsidiary companies used in the preparation of the consolidated financial statements are prepared for
the same reporting date as the Company. Consistent accounting policies are applied to like transactions
and events in similar circumstances. A list of the Group’s subsidiary companies is shown in Note 23 to
the financial statements.
All intra-group balances, transactions, income and expenses and unrealised profits and losses resulting
from intra-group transactions are eliminated in full.
Business combinations are accounted for by applying the acquisition method. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date. Acquisition-related costs are recognised as expenses
in the periods in which the costs are incurred and the services are received.