MCCU Annual Report - page 57

Adoption of Standards, Interpretation and Amendments (cont'd):
Annual Improvements to IFRS 2009-2011 cycle -
contains amendments to certain standards and
interpretations and are effective for accounting periods beginning on or after 1st January 2013. The main
amendments applicable to the credit union are as follows:
The following are Standards and Interpretations in respect of published standards which are in effect and
are relevant to the Credit Union cont'd:
IAS 1, Presentation of Financial Statements,
is amended to clarify that only one comparative
period, which is the preceding period, is required for a complete set of financial statements. IAS 1
requires the presentation of an opening statement of financial position when an entity applies an
accounting policy retrospectively or makes a retrospective restatement or reclassification. IAS 1 has been
amended to clarify that (a) the opening statement of financial position is required only if a change in
accounting policy, a retrospective restatement or a reclassification has a material effect upon the
information in that statement of financial position; (b) except for the disclosures required under IAS 8,
notes related to the opening statement of financial position are no longer required; and (c) the appropriate
date for the opening statement of financial position is the beginning of the preceding period, rather than
the beginning of the earliest comparative period presented.
IAS 16, Property, Plant and Equipment
, has been amended to clarify that the definition of 'property,
plant and equipment' in IAS 16 is now considered in determining whether spare parts, stand-by
equipment and servicing equipment should be accounted for under the standard. If these items do not
meet the definition, then they are accounted for using IAS 2, Inventories.
IAS 32, Financial Instruments : Presentation,
has been amended to clarify that IAS 12, Income Taxes,
applies to the accounting for income taxes relating to distributions to holders of an equity instrument and
transaction costs of an equity transaction.
IAS 19: (Amendments) Employee Benefits (Effective January 2013)
These will affect the financial statements for accounting periods beginning on or after the first day of the
months stated. The adoption of these Standards and amendments are not expected to have a material
impact on the Credit Union's financial statements.
The amendment to IAS 19 changes the accounting for the defined benefit plans and termination benefits.
The most significant change relates to the accounting for changes in defined benefit obligations and plan
assets. The amendments require the recognition of changes in defined benefit obligations and in fair
value of plan assets when they occur, and hence eliminate the 'corridor approach' permitted under the
previous version of IAS 19 and accelerate the recognition of past service costs. The amendments require
all actuarial gains and losses to be recognised immediately through other comprehensive income in order
for the net pension asset or liability to be recognised in the statement of financial position to reflect the
full value of the plan deficit or surplus.
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