IFRS 9

IFRS 9 addresses the initial measurement and classification of financial assets and will replace the relevant sections of IAS 39. Under IFRS 9 there are two options in respect of classification of financial assets namely, financial assets measured at amortised cost or at fair value. Financial assets are measured at amortised cost when the business model is to hold assets in order to collect contractual cash flows and when they give rise to cash flows that are solely payments of principal and interest on the principal outstanding. All other financial assets are measured at fair value.

Management does not expect any significant impact on the financial results.

IFRS 10

IFRS 10 addresses the divergence arising from the control-based principles in IAS 27 and the risks and rewards based approach in SIC 12, and in addition, provides greater guidance on de facto control.

Management does not expect any significant impact on the financial results.

IFRS 11

IFRS 11 identifies two types of joint arrangements, joint operations and joint ventures, and prohibits the use of proportionate consolidation for joint ventures.

Management does not expect any significant impact on the financial results.

IFRIC 12

In order to provide greater transparency, IFRS 12 requires disclosure of the nature, risks and financial impact of consolidated and unconsolidated entities.

Management does not expect any significant impact on the financial results.

IFRS 13

IFRS 13 is a single cohesive standard consolidating the principles of fair value measurement and disclosures for financial reporting. Fair value measurements of a non-financial asset will take into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Management does not expect any significant impact on the financial results.

IAS 19

The elimination of the corridor method will require entities to recognise changes in defined obligations and plan assets immediately through other comprehensive income. The amendments in comprehensive income presentation result in the consistent treatment of changes in the defined obligation and plan assets.

Management does not expect any significant impact on the financial results.

IASB annual improvements 2009 – 2011 cycle

The amendments embodied in the annual improvements 2009 – 2011 cycle are effective for the Group for the year ending June 30 2014.

As part of its annual improvements project, the International Accounting Standards Board (IASB) made amendments to a number of accounting standards. These amendments were primarily made to resolve conflicts and remove inconsistencies between standards, clarify the status of application guidances in standards, clarify existing IFRS requirements, as well as conforming the terminology used in standards with that used in other standards and to those more widely used.

Management’s assessment of the improvements has not revealed any material impact on the Group’s results.

In addition to the aforementioned, management has assessed the impact of the changes to IAS 1, IAS 16, IAS 27, IAS 28, IAS 32 and IAS 34 and have determined these changes will not have any material impact on the Group’s results.