SEO Version
FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
77
2
BASIS OF PREPARATION (CONTINUED)
(d) Use of estimates and judgements (Continued)
Critical accounting estimates and assumptions used that are significant to the financial
statements, and areas involving a high degree of judgement, are disclosed in the following
notes:
•
Note 3(m) – Estimation of income tax
•
Note 4 and 30 – Valuation of investment properties
•
Note 30 – Valuation of financial instruments
(e) Changes in accounting policies
Fair value measurement
FRS 113 establishes a single framework for measuring fair value and making disclosures
about fair value measurements, when such measurements are required or permitted by
other FRSs. In particular, it unifies the definition of fair value as the price at which an
orderly transaction to sell an asset or to transfer a liability would take place between
market participants at the measurement date. It also replaces and expands the disclosure
requirements about fair value measurements in other FRSs, including FRS 107
Financial
Instruments: Disclosures
.
From 1 January 2013, in accordance with the transitional provisions of FRS 113, the Group
has applied the new fair value measurement guidance prospectively, and has not provided
any comparative information for new disclosures. Notwithstanding the above, the change
had no significant impact on the measurements of the Group’s assets and liabilities. The
additional disclosures necessary as a result of the adoption of this standard has been
included in Note 4 and Note 30.
Presentation of items of other comprehensive income
From 1 January 2013, as a result of the amendments to FRS 1, the Group has modified the
presentation of items of other comprehensive income in its consolidated statement of
comprehensive income, to present separately items that would be reclassified to profit or
loss in the future from those that would never be. Comparative information has also been
re-presented accordingly.
The adoption of the amendments to FRS 1 has no impact on the recognised assets, liabilities
and comprehensive income of the Group.
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