for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
85
-
2.
Summaryofsignificantaccountingpolicies (cont’d)
2.2
Standards issued but not yet effective
The Group has not adopted the following standards applicable to the Group that have been issued but not
yet effective:
Description
Effective forannual
periods beginning
on orafter
Amendments toFRS 7
Disclosure Initiative
1 January 2017
Amendments toFRS 12
Recognition ofDeferredTaxAssets for
UnrealisedLosses
1 January 2017
FRS 109
Financial Instruments
1 January 2018
FRS 115
Revenue fromContractswithCustomers
1 January 2018
Amendments toFRS 115
Clarifications toFRS 115Revenue fromContracts
withCustomers
1 January 2018
FRS 116
Leases
1 January 2019
Except forFRS115, FRS109andFRS116, thedirectors expect that theadoptionof theother standards above
will have nomaterial impact on the financial statements in the period of initial application. The nature of the
impending changes in accountingpolicyon adoptionof FRS115, FRS109 andFRS116 aredescribedbelow.
FRS 115
Revenue fromContractswithCustomers
FRS 115 establishes a five-stepmodel to account for revenue arising from contracts with customers. Under
FRS 115, revenue is recognised at an amount that reflects the consideration which an entity expects to be
entitled in exchange for transferring goods or services to a customer.
The new revenue standard will supersede all current revenue recognition requirements under FRS. Either a
full retrospective application or amodified retrospective application is required for annual periods beginning
on or after 1 January 2018. Early adoption is permitted.
The Group is mainly engaged in the development and construction business for specialisedmarine offshore
equipment andmarine vessels. TheGroup has assessed that formost of its projects, performance obligations
for the sale of the vessels and equipment will be satisfied over time.Accordingly, theGroup does not expect
any significant impact to arise from the adoption of FRS 115.
TheGroup plans to adopt the new standard on the required effective date using the full retrospectivemethod
and apply all the practical expedients available for full retrospective approachunder FRS115 as listed above.
