Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 168 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (continued) New and amendments to HKFRSs in issue but not yet effective The Group has not early applied the following new and amendments to HKFRSs that have been issued but are not yet effective: HKFRS 16 Leases 1 HKFRS 17 Insurance Contracts 3 HK(IFRIC) – Int 23 Uncertainty over Income Tax Treatments 1 Amendments to HKFRS 3 Definition of a Business 4 Amendments to HKFRS 9 Prepayment Features with Negative Compensation 1 Amendments to HKFRS 10 and HKAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 2 Amendments to HKAS 1 and HKAS 8 Definition of Material 5 Amendments to HKAS 19 Plan Amendment, Curtailment or Settlement 1 Amendments to HKAS 28 Long-term Interests in Associates and Joint Ventures 1 Amendments to HKFRSs Annual Improvements to HKFRSs 2015–2017 Cycle 1 1 Effective for annual periods beginning on or after 1 January 2019 2 Effective for annual periods beginning on or after a date to be determined 3 Effective for annual periods beginning on or after 1 January 2021 4 Effective for business combinations and asset acquisitions for which the acquisition date is on or after the beginning of the first annual period beginning on or after 1 January 2020 5 Effective for annual periods beginning on or after 1 January 2020 Except for the new HKFRS mentioned below, the directors of the Company anticipate that the application of all other new and amendments to HKFRSs will have no material impact on the consolidated financial statements in the foreseeable future. HKFRS 16 Leases HKFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees. HKFRS 16 will supersede HKAS 17 Leases and the related interpretations when it becomes effective. HKFRS 16 distinguishes lease and service contracts on the basis of whether an identified asset is controlled by customer. In addition, HKFRS 16 requires sales and leaseback transactions to be determined based on the requirements of HKFRS 15 as to whether the transfer of the relevant asset should be accounted as a sale. HKFRS 16 also includes requirements relating to subleases and lease modifications. Distinctions of operating leases and finance leases are removed for lessee accounting, and is replaced by a model where a right-of-use asset and a corresponding liability have to be recognised for all leases by lessees, except for short-term leases and leases of low value assets.