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C.
IFRS 13, ‘Fair value measurement’
The standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The standard sets out a framework for measuring fair value from market
participants’ perspective, and requires disclosures about fair value measurements. For non-financial assets only, fair value is determined
based on the highest and best use of the asset. Based on the Bank and its subsidiaries’s assessment, the adoption of the standard has no
significant impact on its consolidated financial statements, and the Bank and its subsidiaries will disclose additional information about
fair value measurements accordingly.
D.
IFRS 12, ‘Disclosure of interests in other entities’
The standard integrates the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities.
And, the Bank and its subsidiaries will disclose additional information about its interests in consolidated entities and unconsolidated
entities accordingly.
E.
Disclosures - Transfers of financial assets (amendments to IFRS 7)
The amendment enhances quantitative and qualitative disclosures for all transferred financial assets that are not derecognised and for any
continuing involvement in transferred assets, existing at the reporting date.
The amendment increases quantitative and qualitative disclosures on all transferred financial assets, for the Bank and its subsidiaries.
F.
Disclosures - Offsetting of financial assets (amendments to IFRS 7)
The amendment requires an entity, at the end of the reporting period, disclose information to enable users of its financial statements to
evaluate the effect or potential effect of netting arrangements on the entity’s financial position. These disclosures also apply to recognised
financial instruments that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are
set off in accordance with IAS 32.
The amendment increases quantitative and qualitative disclosures on recognised financial instruments, namely enforceable master netting
arrangements or similar agreements, for the Bank and its subsidiaries.
(2)
Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Bank and its subsidiaries
None.
(3)
IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the 2013 version of IFRSs as endorsed by the FSC:
New Standards, Interpretations and Amendments
Effective Date by
International Accounting
Standards Board
IFRS 9, ‘Financial instruments'
January 1, 2018
Sale or contribution of assets between an investor and its associate or joint venture (amendments to IFRS
10 and IAS 28)
To be determined by
International Accounting
Standards Board
Investment entities: applying the consolidation exception (amendments to IFRS 10,IFRS 12 and IAS 28)
January 1, 2016
Accounting for acquisition of interests in joint operations (amendments to IFRS 11)
January 1, 2016
IFRS 14, 'Regulatory deferral accounts'
January 1, 2016
IFRS 15, 'Revenue from contracts with customers'
January 1, 2018
IFRS 16, 'Leases'
January 1, 2019
Disclosure initiative (amendments to IAS 1)
January 1, 2016
Disclosure initiative (amendments to IAS 7)
January 1, 2017
Recognition of deferred tax assets for unrealised losses (amendments to IAS 12)
January 1, 2017
Clarification of acceptable methods of depreciation and amortization (amendments to IAS 16 and IAS 38)
January 1, 2016
Agriculture: bearer plants (amendments to IAS 16 and IAS 41)
January 1, 2016
Defined benefit plans: employee contributions (amendments to IAS 19R)
July 1, 2014
Equity method in separate financial statements (amendments to IAS 27)
January 1, 2016
Recoverable amount disclosures for non-financial assets (amendments to IAS 36)
January 1, 2014
Novation of derivatives and continuation of hedge accounting (amendments to IAS 39)
January 1, 2014
IFRIC 21, ‘Levies’
January 1, 2014
Improvements to IFRSs 2010-2012
July 1, 2014
Improvements to IFRSs 2011-2013
July 1, 2014
Improvements to IFRSs 2012-2014
January 1, 2016
The Bank and its subsidiaries are assessing the potential impact of the new standards, interpretations and amendments above. The impact will
be disclosed when the assessment is complete.
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
(1)
Compliance statement
The financial statements of the Bank have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports
by Public Banks” and the International Financial Reporting Standards, International Accounting standards, IFRIC Interpretations, and SIC
Interpretations as endorsed by the FSC ( collectively referred herein as the “IFRSs”).