Page 90 - OneVue Annual Report 2015

Notes to the financial statements

Note 40. Summary of significant accounting policies (continued)

Amendments to Australian Accounting Standards (Parts A to C)

OneVue has applied Parts A to C of AASB 2014-1 from 1 July 2014. These amendments affect the following
standards: AASB 2 'Share-based Payment': clarifies the definition of 'vesting condition' by separately defining a
'performance condition' and a 'service condition' and amends the definition of 'market condition'; AASB 3 'Business
Combinations': clarifies that contingent consideration in a business combination is subsequently measured at fair
value with changes in fair value recognised in profit or loss irrespective of whether the contingent consideration is
within the scope of AASB 9; AASB 8 'Operating Segments': amended to require disclosures of judgements made in
applying the aggregation criteria and clarifies that a reconciliation of the total reportable segment assets to the
entity's assets is required only if segment assets are reported regularly to the chief operating decision maker; AASB
13 'Fair Value Measurement': clarifies that the portfolio exemption applies to the valuation of contracts within the
scope of AASB 9 and AASB 139; and AASB 138 'Intangible Assets': clarifies that on revaluation, restatement of
accumulated depreciation will not necessarily be in the same proportion to the change in the gross carrying value
of the asset; AASB 124 'Related Party Disclosures': extends the definition of 'related party' to include a management
entity that provides KMP services to the entity or its parent and requires disclosure of the fees paid to the
management entity.

New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June
2015 reporting periods and have not been early adopted by OneVue. OneVue’s assessment of the impact of these
new standards and interpretations is set out below.

AASB 9 Financial Instruments

This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces
all previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition and
Measurement'. AASB 9 introduces new classification and measurement models for financial assets. A financial asset
shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order
to collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial
instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an
irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-
trading) in other comprehensive income ('OCI'). For financial liabilities, the standard requires the portion of the
change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an
accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the
accounting treatment with the risk management activities of the entity. New impairment requirements will use an
'expected credit loss' ('ECL') model to recognise an allowance. Impairment will be measured under a 12-month ECL
method unless the credit risk on a financial instrument has increased significantly since initial recognition in which
case the lifetime ECL method is adopted. The standard introduces additional new disclosures. OneVue will adopt
this standard from 1 July 2018 but the impact of its adoption is yet to be assessed by OneVue.

AASB 15 Revenue from Contracts with Customers

This standard is applicable to annual reporting periods beginning on or after 1 January 2017. The standard
provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise
revenue to depict the transfer of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will
require: contracts (either written, verbal or implied) to be identified, together with the separate performance

90 - ONEVUE ANNUAL REPORT 2015