SEVENTH SCHEDULE
Regulation 2(c)
Adoption and Modification of Interpretations of the Standing Interpretations Committee or Interpretations of the International Financial Reporting Interpretations Committee
First column
Second column
Third column
Interpretation of Financial Reporting Standard (“INT FRS”)
Interpretation of the Standing Interpretations Committee/ Interpretation of the International Financial Reporting Interpretations Committee
Modification of Interpretations of the Standing Interpretations Committee/ Interpretations of the International Financial 45 Reporting Interpretations Committee for the purposes of INT FRS
INT FRS 7
Introduction of the Euro
SIC – 7
Introduction of the Euro
(i)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(ii)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 7 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 10
Government Assistance – No Specific Relation to Operating Activities
SIC – 10
Government Assistance – No Specific Relation to Operating Activities
(i)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(ii)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 10 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 12
Consolidation – Special Purpose Entities
SIC – 12 (Amendment November 2004)
Consolidation – Special Purpose Entities
(i)Delete the words “Paragraph 35 of the Framework” and substitute the words “Paragraph 31 of the FRS Framework”.
 
 
(ii)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iii)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 12 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for in accordance FRS 8. An entity shall apply the amendments for annual periods beginning on or after 1 January 2005. If an entity applies FRS 102 for an earlier period, the amendment shall be applied for that earlier period.”.
 
 
(iv)Delete the words in paragraph 6 of SIC-12 and substitute the following words:
 
 
 “This Interpretation does not apply to post-employment benefit plans or other long-term employee benefit plans to which FRS 19 applies.”.
 
 
(v)Insert, immediately after paragraph 14 of SIC-12, the following paragraphs:
   “15A.  In 2005, the scope of INT FRS 12 was amended. That Amendment is effective for annual periods beginning on or after 1 January 2005, unless an entity applied FRS 102 for an earlier period, in which case the Amendment is effective for that earlier period. Before that Amendment, INT FRS 12 excluded from its scope equity compensation plans and post-employment benefit plans. Paragraphs 15B-15E summarise the considerations in reaching its consensus to amend the scope of INT FRS 12.
   15B.  The issue on whether the scope exclusion in INT FRS 12 for equity compensation plans should be removed when FRS 102 becomes effective was considered. Equity compensation plans were excluded from the scope of INT FRS 12 because they were within the scope of FRS 19 and that Standard did not specify recognition and measurement requirements for equity compensation benefits. However, once FRS 102 became effective, FRS 19 would no longer apply to equity compensation plans. FRS 102 specifies recognition and measurement requirements for equity compensation benefits.
   15C.  Also, FRS 102 amended FRS 32, to state that paragraphs 33 and 34, which relate to the treatment of treasury shares, should be applied to treasury shares purchased, sold, issued or cancelled in connection with employee share option plans, employee share purchase plans, and all other share-based payment arrangements. However, in some cases, those shares might be held by an employee benefit trust (or similar entity) set up by the entity for the purposes of its share-based payment arrangements. Removing the scope exclusion in INT FRS 12 would require an entity that controls such a trust to consolidate the trust and, in so doing, to apply the requirements of FRS 32 to treasury shares held by the trust.
 
 
   15D.  It was therefore concluded that, to ensure consistency with FRS 102 and FRS 32, the scope of INT FRS 12 should be amended by removing the exclusion of equity compensation plans.
   15E.  At the same time, the scope exclusion in INT FRS 12 for post-employment benefit plans was discussed. It was noted that, although INT FRS 12 did not exclude other long-term employee benefit plans from its scope, FRS 19 nevertheless requires those plans to be accounted for in a manner similar to the accounting for post-employment benefit plans. It was therefore concluded that, to ensure consistency with FRS 19, the scope exclusion in INT FRS 12 should also apply to other long-term employee benefit plans.
INT FRS 13
Jointly Controlled Entities – Non-Monetary Contributions by Venturers
SIC – 13
Jointly Controlled Entities – Non-Monetary Contributions by Venturers
(i)Delete the words “Paragraph 92 of the Framework” and substitute the words “Paragraph 88 of the FRS Framework”.
 
 
(ii)Delete the words “Framework (paragraphs 53 to 64 and paragraphs 89 to 91)” and substitute the words “FRS Framework (paragraphs 49 to 60 and paragraphs 85 to 87)”.
 
 
(iii)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iv)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 13 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 15
Operating Leases - Incentives
SIC – 15
Operating Leases - Incentives
(i)Delete the words “Paragraph 35 of the Framework” and substitute the words “Paragraph 31 of the FRS Framework”.
 
 
(ii)Delete the words “Paragraph 22 of the Framework” and substitute the words “Paragraph 18 of the FRS Framework”.
 
 
(iii)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iv)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 15 comes into effect on 1st February 2003.
INT FRS 21
Income Taxes – Recovery of Revalued Non-Depreciable Assets
SIC – 21
Income Taxes – Recovery of Revalued Non-Depreciable Assets
(i)Delete the following paragraph:
 
 
 “Draft Interpretation SIC-D21, Income Taxes — Omnibus was issued for comment in September 1999. The Draft Interpretation included both the issue addressed in this Interpretation and the issue included in Interpretation SIC-25, Income Taxes — Changes in the Tax Status of an Enterprise or its Shareholders.”.
 
 
(ii)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iii)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 21 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 25
Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
SIC – 25
Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
(i)Delete the following paragraph:
 
 
 Draft Interpretation SIC-D21, Income Taxes — Omnibus was issued for comment in September 1999. The Draft Interpretation included both the issue addressed in this Interpretation and the issue included in Interpretation SIC-21, Income Taxes — Recovery of Revalued Non-Depreciable Assets.”.
 
 
(ii)Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iii)Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
 “INT FRS 25 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 27
Evaluating the Substance of Transactions Involving the Legal Form of a Lease
SIC – 27
Evaluating the Substance of Transactions Involving the Legal Form of a Lease
(i) Delete the words “paragraph 35 of the Framework” wherever they appear and substitute in each case the words “paragraph 31 of the FRS Framework”.
 
 
(ii) Delete the words “paragraphs 49 – 64 of the Framework” wherever they appear and substitute in each case the words “paragraphs 45 – 60 of the FRS Framework”.
 
 
(iii) Delete the words “Paragraph 75 of the Framework” and substitute the words “Paragraph 71 of the FRS Framework”.
 
 
(iv) Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(v) Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
“INT FRS 27 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 29
Disclosure – Service Concession Arrangements
SIC – 29
Disclosure – Service Concession Arrangements
(i) Delete the words “Paragraph 15 of the Framework” and substitute the words “Paragraph 11 of the FRS Framework”.
 
 
(ii) Delete the words “Paragraph 21 of the Framework” and substitute the words “Paragraph 17 of the FRS Framework”.
 
 
(iii) Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iv) Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
“INT FRS 29 comes into effect on 1st February 2003.”.
INT FRS 31
Revenue – Barter Transactions Involving Advertising Services
SIC – 31
Revenue – Barter Transactions Involving Advertising Services
(i) Delete the words “Paragraph 31 of the Framework” and substitute the words “Paragraph 27 of the FRS Framework”.
 
 
(ii) Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(iii) Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
“INT FRS 31 comes into effect on 1st February 2003. Changes in accounting policies should be accounted for according to the transitional requirements in FRS 8.40.”.
INT FRS 32
Intangible Assets – Web Site Costs
SIC – 32
Intangible Assets – Web Site Costs
(i) Delete the heading “Date of Consensus” and the date following thereafter.
 
 
(ii) Delete the paragraph under the heading “Effective Date” and substitute the following paragraph:
 
 
“INT FRS 32 comes into effect on 1st February 2003. The effects of adopting this INT FRS should be accounted for using the transitional requirements in FRS 38.118 — 38.121. Therefore, when a web site does not meet the criteria for recognition as an intangible asset, but was previously recognised as an asset, the item should be derecognised at the date when this INT FRS becomes effective. When a web site exists and the expenditure to develop it meets the criteria for recognition as an intangible asset, but such expenditure was not previously recognised as an asset, the intangible asset should not be recognised at the date when this INT FRS becomes effective. When a web site exists and the expenditure to develop it meets the criteria for recognition as an intangible asset, and where such expenditure was previously recognised as an asset and initially measured at cost, the amount of expenditure initially recognised is deemed to have been properly determined according to this INT FRS.”.
INT FRS 101
Changes in Existing Decommissioning, Restoration and Similar Liabilities
IFRIC
Interpretation 1
Changes in Existing Decommissioning, Restoration and Similar Liabilities
Delete the following words in paragraph A1 of the Appendix to IFRIC Interpretation 1:
 
 
“In the Basis for Conclusions, a new heading and paragraph BC63C are inserted, as follows:”,
and the paragraphs thereunder.
INT FRS 104 Determining whether an Arrangement contains a Lease
IFRIC Interpretation 4 Determining whether an Arrangement contains a Lease
Delete the following words in paragraph A1 of the Appendix to IFRIC Interpretation 4:
"In the Basis for Conclusions, after paragraph BC63C a new heading and paragraph BC63D are inserted, as follows:
 
 
Leases
BC63D IFRIC 4 Determining whether an Arrangement contains a Lease contains transitional provisions because the IFRIC acknowledged the practical difficulties raised by full retrospective application of the Interpretation, in particular the difficulty of going back potentially many years and making a meaningful assessment of whether the arrangement satisfied the criteria at that time. The Board decided to treat first-time adopters in the same way as entities that already apply IFRSs.".
INT FRS 105 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
IFRIC Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
(There is no modification on IFRIC Interpretation 5).
INT FRS 106 Liabilities arising from Participating in a Specific Market — Waste Electrical and Electronic Equipment
IFRIC Interpretation 6 Liabilities arising from Participating in a Specific Market — Waste Electrical and Electronic Equipment
Delete the following words in paragraph 8 of IFRIC Interpretation 6:
 
 
“The IFRIC was asked to determine”, and substitute the following words:
 
 
“This Interpretation determines”.
INT FRS 107
Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary Economies
IFRIC Interpretation 7
Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
(There is no modification on IFRIC Interpretation 7).
INT FRS 108
IFRIC Interpretation 8
(There is no modification on IFRIC Interpretation 8).
Scope of FRS 102
Scope of IFRS 2
 
INT FRS 109 Reassessment of Embedded Derivatives
IFRIC Interpretation 9 Reassessment of Embedded Derivatives
(There is no modification on IFRIC Interpretation 9).
INT FRS 110
Interim Financial Reporting and Impairment
IFRIC Interpretation 10
Interim Financial Reporting and Impairment
(There is no modification on IFRIC Interpretation 10).
INT FRS 111
FRS 102 — Group and Treasury Share Transactions
IFRIC Interpretation 11
IFRS 2 — Group and Treasury Share Transactions
(There is no modification on IFRIC Interpretation 11).
INT FRS 112
Service Concession Arrangements
IFRIC Interpretation 12
Service Concession Arrangements
(There is no modification on IFRIC Interpretation 12).