TA YANG GROUP HOLDINGS LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
大 洋 集 團 控 股 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 1991) PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 JULY 2015 FINAL RESULTSThe Board of Directors (the 'Board') of Ta Yang Group Holdings Limited (the 'Company') announces the audited consolidated results of the Company and its subsidiaries (collectively referred to as the 'Group') for the year ended 31 July 2015, together with the audited comparative figures for the year ended 31 July 2014 as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSSFOR THE YEAR ENDED 31 JULY 2015
2015 | 2014 | |||
Notes | HK$'000 | HK$'000 | ||
Turnover | 3 | 426,242 | 467,264 | |
Cost of sales | (376,124) | (471,923) | ||
Gross profit (loss) | 50,118 | (4,659) | ||
Other operating income | 3 | 15,528 | 34,589 | |
Selling and distribution expenses | (44,807) | (28,213) | ||
Administrative expenses | (103,930) | (130,646) | ||
Other expenses | 5 | (75,700) | (90,819) | |
Share of results of joint ventures | 629 | - | ||
Share of results of associates | (468) | (76) | ||
Finance costs | 6 | (729) | (814) | |
Loss before tax | (159,359) | (220,638) | ||
Income tax (expense) credit | 7 | (23) | 280 | |
Loss for the year | 8 | (159,382) | (220,358) | |
Loss for the year attributable to: | ||||
Owners of the Company | (156,335) | (216,563) | ||
Non-controlling interests | (3,047) | (3,795) | ||
(159,382) | (220,358) | |||
Loss per share | 10 | |||
Basic (HK cents) | (20.08) | (27.82) | ||
Diluted (HK cents) | (20.08) | (27.82) | ||
FOR THE YEAR ENDED 31 JULY 2015
2015 | 2014 | ||
HK$'000 | HK$'000 | ||
Loss for the year | (159,382) | (220,358) | |
Other comprehensive income (expenses) | |||
Items that will not be reclassified subsequently to profit or loss: | |||
Gain on revaluation of properties | 7,684 | - | |
Gain on revaluation of prepaid lease payments | 1,565 | - | |
9,249 | - | ||
Items that may be reclassified subsequently to profit or loss: | |||
Exchange differences arising on translating foreign operations | (482) | (15,432) | |
Available-for-sale financial assets | |||
Net loss arising on revaluation of available-for-sale financial assets for the year | (5,402) | (2,295) | |
Reclassification adjustments for loss (gain) included in the consolidated statement of profit or loss | |||
- gain on disposal | - | (202) | |
- impairment loss | 3,458 | 752 | |
(1,944) | (1,745) | ||
Share of other comprehensive (expenses) income of associates and joint ventures | |||
Share of exchange difference of associates | (71) | 53 | |
Share of exchange difference of a joint venture | (629) | - | |
(700) | 53 | ||
Other comprehensive income (expenses) for the year | 6,123 | (17,124) | |
Total comprehensive expenses for the year, net of income tax | (153,259) | (237,482) | |
Total comprehensive expenses for the year, net of income tax, attributable to | |||
Owners of the Company | (150,231) | (233,546) | |
Non-controlling interests | (3,028) | (3,936) | |
(153,259) | (237,482) | ||
AS AT 31 JULY 2015
2015 | 2014 | |||
Notes | HK$'000 | HK$'000 | ||
Non-current assets | ||||
Property, plant and equipment | 100,085 | 173,127 | ||
Intangible assets | - | 5,478 | ||
Construction in progress | - | 728 | ||
Prepaid lease payments | 10,840 | 12,635 | ||
Investment properties | 54,647 | 31,868 | ||
Available-for-sale financial assets | 19,596 | 27,013 | ||
Interests in joint ventures | - | - | ||
Interests in associates | - | 2,880 | ||
Deposits for acquisition of land use rights | 13,163 | 14,260 | ||
198,331 | 267,989 | |||
Current assets | ||||
Inventories | 62,172 | 73,391 | ||
Trade and other receivables | 11 | 150,930 | 170,089 | |
Prepaid lease payments | 321 | 361 | ||
Loan receivable from a joint venture | - | 7,489 | ||
Amount due from a joint venture | - | 5,211 | ||
Amount due from an associate | - | 32 | ||
Income tax recoverable | - | 22 | ||
Held-to-maturity investments | 43,442 | - | ||
Held-for-trading investments | 9,120 | 15,138 | ||
Derivative financial instruments | - | 300 | ||
Financial asset designated at fair value through profit or loss | - | 3,688 | ||
Short-term bank deposits | 86,298 | 71,981 | ||
Bank balances and cash | 103,556 | 200,111 | ||
455,839 | 547,813 | |||
Assets classified as held for sale | - | 21 | ||
455,839 | 547,834 | |||
Current liabilities | ||||
Trade and other payables | 12 | 97,612 | 78,991 | |
Receipt in advance from a venturer | - | 6,043 | ||
Derivative financial instruments | 17,017 | 19,775 | ||
Amount due to a joint venture | 202 | - | ||
Provision for restructuring | - | 7,511 | ||
Income tax payable | 22,376 | 22,376 | ||
Secured bank borrowings | 33,282 | 45,666 | ||
170,489 | 180,362 | |||
Net current assets | 285,350 | 367,472 | ||
Total assets less current liabilities | 483,681 | 635,461 | ||
2015 | 2014 | ||
HK$'000 | HK$'000 | ||
Capital and reserves | |||
Share capital | 77,892 | 77,854 | |
Reserves | 397,769 | 551,053 | |
Equity attributable to owners of the Company | 475,661 | 628,907 | |
Non-controlling interests | - | 1,519 | |
Total equity | 475,661 | 630,426 | |
Non-current liabilities | |||
Deferred income | 3,946 | 3,971 | |
Deferred tax liabilities | 4,074 | 1,064 | |
8,020 | 5,035 | ||
483,681 | 635,461 | ||
FOR THE YEAR ENDED 31 JULY 2015
-
GENERAL
Ta Yang Group Holdings Limited (the 'Company') is incorporated in the Cayman Islands with limited liability and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited. The addresses of the registered office and principal place of business of the Company are disclosed in the 'Corporate Information' section of the Annual Report. The Company and its subsidiaries (the 'Group') are principally engaged in manufacturing and sale of silicone rubber and related products.
The consolidated financial statements are presented in Hong Kong dollars ('HK$'). Other than those subsidiaries established in the People's Republic of China (the 'PRC'), Macau and Indonesia whose functional currencies are Renminbi, Macau Pataca and Indonesian Rupiah respectively, the functional currency of the Company and its other subsidiaries is HK$.
At 31 July 2015, the directors of the Company consider the ultimate holding company of the Company to be Sunny Stars Investments Limited which is incorporated in the British Virgin Islands (the 'BVI').
- APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS ('HKFRS(s)') AND NEW HONG KONG COMPANIES ORDINANCE
In the current year, the Group has applied the following new and revised HKFRSs, which include HKFRSs, Hong Kong Accounting Standards ('HKAS(s)'), amendments and Interpretations ('Int(s)'), issued by the Hong Kong Institute of Certified Public Accountants (the 'HKICPA').
Amendments to HKFRSs | Annual Improvements to HKFRSs 2010-2012 Cycle |
Amendments to HKFRSs | Annual Improvements to HKFRSs 2011-2013 Cycle |
Amendments to HKFRS 10, HKFRS 12 and HKAS 27 | Investment Entities |
Amendments to HKAS 19 | Defined Benefit Plans: Employee Contributions |
Amendments to HKAS 32 | Offsetting Financial Assets and Financial Liabilities |
Amendments to HKAS 36 | Recoverable Amount Disclosures for Non-Financial Assets |
Amendments to HKAS 39 | Novation of Derivatives and Continuation of Hedge Accounting |
Hong Kong (IFRS Interpretations Committee) ('HK(IFRIC)')-Int 21 | Levies |
Except as described below, the application of the new and revised HKFRSs in the current year has had no material impact on the Group's financial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated financial statements.
Amendments to HKFRS 10, HKFRS 12 and HKAS 27 Investment EntitiesThe Group has applied amendments to HKFRS 10, HKFRS 12 and HKAS 27 Investment Entities for the first time in the current year. The amendments to HKFRS 10 define an investment entity and introduce an exception to consolidating subsidiaries for an investment entity, except where the subsidiaries provide services that relate to the investment entity's investment activities. Under the amendments to HKFRS 10, an investment entity is required to measure its interests in subsidiaries at fair value through profit or loss.
To qualify as an investment entity, certain criteria have to be met. Specifically, an entity is required to:
Obtain funds from one or more investors for the purpose of providing them with professional investment;
Commit to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and
Measure and evaluate performance of substantially all of its investments on a fair value basis. Consequential amendments to HKFRS 12 and HKAS 27 have been made to introduce new disclosure requirements for investment entities.
As the Company is not an investment entity, the directors of the Company consider that the application of the amendments has had no impact on the disclosures or the amounts recognised in the Group's consolidated financial statements.
The Group has applied amendments to HKAS 32 Offsetting Financial Assets and Financial Liabilities for the first time in the current year. The amendments to HKAS 32 clarify existing application issues relating to the offset of financial assets and financial liabilities requirements. Specifically, the amendments clarify the meaning of 'currently has a legally enforceable right of set-off' and 'simultaneous realisation and settlement'.
The amendments have been applied retrospectively. The Group has assessed whether certain of its financial assets and financial liabilities qualify for offset based on the criteria set out in the amendments and concluded that the application of the amendments has had no impact on the amounts recognised in the Group's consolidated financial statements.
The Group has applied amendments to HKAS 36 Recoverable Amount Disclosures for Non-Financial Assets for the first time in the current year. The amendments to HKAS 36 require disclosures on additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal. If the recoverable amount is fair value less costs of disposal, an entity shall disclose the level of the fair value hierarchy within which the fair value measurement of the asset or cash generating unit is categorised in its entirety. The Group is required to make additional disclosures for Level 2 and Level 3 of the fair value hierarchy:
A description of the valuation techniques used to measure the fair value less costs of disposals. If there is any change in valuation techniques, the fact and the reason should also be disclosed;
Each key assumption on which management has based its determination of fair value less costs of disposal;
The discount rates used in the current and previous measurement if fair value less costs of disposal is measured using a present value technique.
The amendments have been applied retrospectively. The directors of the Company consider that the application of the amendments to HKAS 36 has had no material impact on the disclosures in the Group's consolidated financial statements.
The Annual Improvements to HKFRSs 2010-2012 Cycle include a number of amendments to various HKFRSs, which are summarised below.
The amendments to HKFRS 2 (i) change the definitions of 'vesting condition' and 'market condition'; and
add definitions for 'performance condition' and 'service condition' which were previously included within the definition of 'vesting condition'. The amendments to HKFRS 2 are effective for share-based payment transactions for which the grant date is on or after 1 July 2014.
The amendments to HKFRS 3 clarify that contingent consideration that is classified as an asset or a liability should be measured at fair value at each reporting date, irrespective of whether the contingent consideration is a financial instrument within the scope of HKFRS 9 or HKAS 39 or a non-financial asset or liability. Changes in fair value (other than measurement period adjustments) should be recognised in profit and loss. The amendments to HKFRS 3 are effective for business combinations for which the acquisition date is on or after 1 July 2014.
The amendments to HKFRS 8 (i) require an entity to disclose the judgements made by management in applying the aggregation criteria to operating segments, including a description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have 'similar economic characteristics'; and (ii) clarify that a reconciliation of the total of the reportable segments' assets to the entity's assets should only be provided if the segment assets are regularly provided to the chief operating decision maker.
The amendments to the basis for conclusions of HKFRS 13 clarify that the issue of HKFRS 13 and consequential amendments to HKAS 39 and HKFRS 9 do not remove the ability to measure short-term receivables and payables with no stated interest rate at their invoice amounts without discounting, if the effect of discounting is immaterial.
The amendments to HKAS 16 and HKAS 38 remove perceived inconsistencies in the accounting for accumulated depreciation/amortisation when an item of property, plant and equipment or an intangible asset is revalued. The amended standards clarify that the gross carrying amount is adjusted in a manner consistent with the revaluation of the carrying amount of the asset and that accumulated depreciation/amortisation is the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.
The amendments to HKAS 24 clarify that a management entity providing key management personnel services to a reporting entity is a related party of the reporting entity. Consequently, the reporting entity should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. However, disclosure of the components of such compensation is not required.
The directors of the Company considered that the application of the amendments included in the Annual Improvements to HKFRSs 2010-2012 Cycle has had no material effect on the Group's consolidated financial statements.
Annual Improvements to HKFRSs 2011-2013 CycleThe Annual Improvements to HKFRSs 2011-2013 Cycle include a number of amendments to various HKFRSs, which are summarised below.
The amendments to HKFRS 3 clarify that the standard does not apply to the accounting for the formation of all types of joint arrangement in the financial statements of the joint arrangement itself.
The amendments to HKFRS 13 clarify that the scope of the portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with, HKAS 39 or HKFRS 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within HKAS 32.
The amendments to HKAS 40 clarify that HKAS 40 and HKFRS 3 are not mutually exclusive and application of both standards may be required. Consequently, an entity acquiring investment property must determine whether:
the property meets the definition of investment property in terms of HKAS 40; and
the transaction meets the definition of a business combination under HKFRS 3.
All recognised financial assets that are within the scope of HKAS 39 Financial Instruments: Recognition and Measurement to be subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets, and that have contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured at FVTOCI. All other debt investments and equity investments are measured at their fair values at the end of subsequent reporting periods. In addition, under HKFRS 9 (2014), entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in profit or loss.
With regard to the measurement of financial liabilities designated as at fair value through profit or loss, HKFRS 9 (2014) requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value of financial liabilities attributable to changes in the financial liabilities' credit risk are not subsequently reclassified to profit or loss. Under HKAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss is presented in profit or loss.
In the aspect of impairment assessments, the impairment requirements relating to the accounting for an entity's expected credit losses on its financial assets and commitments to extend credit were added. Those requirements eliminate the threshold that was in HKAS 39 for the recognition of credit losses. Under the impairment approach in HKFRS 9 (2014), it is no longer necessary for a credit event to have occurred before credit losses are recognised. Instead, expected credit losses and changes in those expected credit losses should always be accounted for. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition and, consequently, more timely information is provided about expected credit losses.
HKFRS 9 (2014) introduces a new model which more closely aligns hedge accounting with risk management activities undertaken by companies when hedging their financial and non-financial risk exposures. As a principle-based approach, HKFRS 9 (2014) looks at whether a risk component can be identified and measured and does not distinguish between financial items and non-financial items. The new model also enables an entity to use information produced internally for risk management purposes as a basis for hedge accounting. Under HKAS 39, it is necessary to exhibit eligibility and compliance with the requirements in HKAS 39 using metrics that are designed solely for accounting purposes. The new model also includes eligibility criteria but these are based on an economic assessment of the strength of the hedging relationship. This can be determined using risk management data. This should reduce the costs of implementation compared with those for HKAS 39 hedge accounting because it reduces the amount of analysis that is required to be undertaken only for accounting purposes.
Identify the contract with the customer;
Identify the performance obligations in the contract;
Determine the transaction price;
Allocate the transaction price to the performance obligations; and
Recognise revenue when (or as) the entity satisfies a performance obligation.
when the intangible asset is expressed as a measure of revenue;
when a high correlation between revenue and the consumption of the economic benefits of the intangible assets could be demonstrated.
an entity should consider the effect on the understandability and comparability of its financial statements when determining the order of the notes; and
significant accounting policies are not required to be disclosed in one note, but instead can be included with related information in other notes.
The directors of the Company considered that the application of the amendments included in the Annual Improvements to HKFRSs 2011-2013 Cycle has had no material effect on the Group's consolidated financial statements.
In addition, the annual report requirements of Part 9 'Accounts and Audit' of the Hong Kong Companies Ordinance (Cap. 622) come into operation during the financial year. As a result, there are changes to presentation and disclosures of certain information in the consolidated financial statements.
The Group has not early applied the following new and revised HKFRSs that have been issued but are not yet effective:
HKFRS 9 (2014) | Financial Instruments2 |
HKFRS 15 | Revenue from Contracts with Customers2 |
Amendments to HKFRSs | Annual Improvements to HKFRSs 2012-2014 Cycle1 |
Amendments to HKAS 1 | Disclosure Initiative1 |
Amendments to HKAS 16 and HKAS 38 | Clarification of Acceptable Methods of Depreciation and Amortisation1 |
Amendments to HKAS 16 and HKAS 41 | Agriculture: Bearer Plants1 |
Amendments to HKAS 27 | Equity Method in Separate Financial Statements1 |
Amendments to HKFRS 10 and HKAS 28 | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture1 |
Amendments to HKFRS 10, HKFRS 12 and HKAS 28 | Investment Entities: Applying the Consolidation Exception1 |
Amendments to HKFRS 11 | Accounting for Acquisitions of Interests in Joint Operations1 |
1 Effective for annual periods beginning on or after 1 January 2016.
2 Effective for annual periods beginning on or after 1 January 2018.
The directors of the Company anticipate that, except as described below, the application of other new and revised HKFRSs will have no material impact on the results and the financial position of the Group.
HKFRS 9 (2014) Financial InstrumentsHKFRS 9 issued in 2009 introduces new requirements for the classification and measurement of financial assets. HKFRS 9 was amended in 2010 and includes the requirements for the classification and measurement of financial liabilities and for derecognition. In 2013, HKFRS 9 was further amended to bring into effect a substantial overhaul of hedge accounting that will allow entities to better reflect their risk management activities in the financial statements. A finalised version of HKFRS 9 was issued in 2014 to incorporate all the requirements of HKFRS 9 that were issued in previous years with limited amendments to the classification and measurement by introducing a 'fair value through other comprehensive income' ('FVTOCI') measurement category for certain financial assets. The finalised version of HKFRS 9 also introduces an 'expected credit loss' model for impairment assessments.
Key requirements of HKFRS 9 (2014) are described as follows:
HKFRS 9 (2014) will become effective for annual periods beginning on or after 1 January 2018 with early application permitted.
The directors of the Company anticipate that the adoption of HKFRS 9 (2014) in the future may have significant impact on amounts reported in respect of the Group's financial assets and financial liabilities.
Regarding the Group's financial assets, it is not practicable to provide a reasonable estimate of that effect until a detailed review has been completed.
The core principle of HKFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Thus, HKFRS 15 introduces a model that applies to contracts with customers, featuring a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. The five steps are as follows:
HKFRS 15 also introduces extensive qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.
HKFRS 15 will supersede the current revenue recognition guidance including HKAS 18 Revenue, HKAS 11 Construction Contracts and the related Interpretations when it becomes effective.
HKFRS 15 will become effective for annual periods beginning on or after 1 January 2018 with early application permitted. The directors of the Company anticipate that the application of HKFRS 15 in the future may have a material impact on the amounts reported and disclosures made in the Group's consolidated financial statements. However, it is not practicable to provide a reasonable estimate of the effect of HKFRS 15 until the Group performs a detailed review.
Annual Improvement to HKFRSs 2012-2014 CycleThe Annual Improvements to HKFRSs 2012-2014 Cycle include a number of amendments to various HKFRSs, which are summarised below.
The amendments to HKFRS 5 clarify that changing from one of the disposal methods (i.e. disposal through sale or disposal through distribution to owners) to the other should not be considered to be a new plan of disposal, rather it is a continuation of the original plan. There is therefore no interruption of the application of the requirements in HKFRS 5. Besides, the amendments also clarify that changing the disposal method does not change the date of classification.
The amendments to HKFRS 7 clarify that a servicing contract that includes a fee can constitute continuing involvement in a financial asset. An entity must assess the nature of the fee and arrangement against the guidance for continuing involvement in HKFRS 7 in order to assess whether the additional disclosures for any continuing involvement in a transferred asset that is derecognised in its entirety are required. Besides, the amendments to HKFRS 7 also clarify that disclosures in relation to offsetting financial assets and financial liabilities are not required in the condensed interim financial report, unless the disclosures provide a significant update to the information reported in the most recent annual report.
The amendments to HKAS 19 clarify that the market depth of high quality corporate bonds is assessed based on the currency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep market for high quality corporate bonds in that currency, government bond rates must be used.
HKAS 34 requires entities to disclose information in the notes to the interim financial statements 'if not disclosed elsewhere in the interim financial report'. The amendments to HKAS 34 clarify that the required interim disclosures must either be in the interim financial statements or incorporated by cross-reference between the interim financial statements and wherever they are included within the greater interim financial report. The other information within the interim financial report must be available to users on the same terms as the interim financial statements and at the same time. If users do not have access to the other information in this manner, then the interim financial report is incomplete.
The directors of the Company do not anticipate that the application of the amendments included in the Annual Improvements to HKFRSs 2012-2014 Cycle will have a material effect on the Group's consolidated financial statements.
The amendments to HKAS 16 prohibit the use of revenue-based depreciation methods for property, plant and equipment under HKAS 16. The amendments to HKAS 38 introduce a rebuttable presumption that the use of revenue-based amortisation methods for intangible assets is inappropriate. This presumption can be rebutted only in the following limited circumstances:
The amendments to HKAS 16 and HKAS 38 will become effective for financial statements with annual periods beginning on or after 1 January 2016. Earlier application is permitted. The amendments should be applied prospectively.
As the Group uses straight-line method for depreciation of property, plant and equipment and intangible assets, the directors of the Company do not anticipate that the application of the amendments to HKAS 16 and HKAS 38 will have a material impact on the Group's consolidated financial statements.
The amendments clarify that companies should use professional judgement in determining what information as well as where and in what order information is presented in the financial statements. Specifically, an entity should decide, taking into consideration all relevant facts and circumstances, how it aggregates information in the financial statements, which include the notes. An entity does not require to provide a specific disclosure required by a HKFRS if the information resulting from that disclosure is not material. This is the case even if the HKFRS contains a list of specific requirements or describes them as minimum requirements.
Besides, the amendments provide some additional requirements for presenting additional line items, headings and subtotals when their presentation is relevant to an understanding of the entity's financial position and financial performance respectively. Entities, in which they have investments in associates or joint ventures, are required to present the share of other comprehensive income of associates and joint ventures accounted for using the equity method, separated into the share of items that (i) will not be reclassified subsequently to profit or loss; and (ii) will be reclassified subsequently to profit or loss when specific conditions are met.
Furthermore, the amendments clarify that:
The amendments will become effective for financial statements with annual periods beginning on or after 1 January 2016. Earlier application is permitted. The directors of the Company anticipate that the application of the amendments to HKAS 1 in the future may have a material impact on the disclosures made in the Group's consolidated financial statements.
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