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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
14
2.
ADOPTION OF NEW AND REVISED STANDARDS (CONTINUED)
Standards not affecting the reported results or the financial position
The following new and revised Standards and Interpretations have been adopted in the current year. Their adoption
has not had any significant impact on the amounts reported in these financial statements but may impact the
accounting for future transactions and arrangements.
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated
financial statements and SIC-12 Consolidation- Special Purpose Entities. IFRS 10 changes the definitions of control
such that an investor has control over an investee when a) it has power over the investee; b) it is exposed, or has
rights, to variable returns from its involvement with the investee and c) has the ability to use its power to affect its
returns. All three of these criteria must be met for an investor to have control over an investee. Previously, control
was defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. The adoption of this standard has not resulted in any impact on the financial position or performance of the
Group.
IAS 27 (revised 2011) Separate Financial Statements
As a consequence of the new IFRS 10 and IFRS 12, what remains of IAS 27 is limited to accounting for subsidiaries,
jointly controlled entities, and associates in separate financial statements. The Group does not present separate
financial statements.
Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities
These amendments clarify the meaning of ’currently has a legally enforceable right to set-off’ and the criteria for non-
simultaneous settlement mechanisms of clearing houses to qualify for offsetting. These amendments have no impact
on the Group.
Amendments to IFRS 10, IFRS 12, and IAS 27 – Investment Entities
These amendments provide an exception to the consolidation requirement for entities that meet the definition of an
investment entity under IFRS 10 Consolidated Financial Statements. The exception to consolidation requires
investment entities to account for subsidiaries at fair value through profit or loss. These amendments have no impact
to the Group, since none of the entities in the Group qualifies to be an investment entity under IFRS 10.
Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets
These amendments remove the unintended consequences of IFRS 13 Fair Value Measurement on the disclosures
required under IAS 36 Impairment of Assets. In addition, these amendments require disclosure of the recoverable
amounts for the assets or cash-generating units (CGUs) for which an impairment loss has been recognised or reversed
during the period. These amendments have no material impact to the Group and have resulted only in additional
disclosure in the consolidated financial statements.
Amendments to IAS 39 Novation of Derivatives and Continuance of Hedge Accounting
These amendments provide relief from discontinuing hedge accounting when novation of a derivative designated as a
hedging instrument meets certain criteria. These amendments have no impact to the Group as the Group has not
novated its derivatives during the current or prior periods.
Standards not yet adopted
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not
been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been
adopted by the EU):
IFRS 9 Financial Instruments
IFRS 14 Regulatory Deferrals Accounts
IFRS 15 Revenue from Contracts with Customers
IFRIC 21 Levies
Amendments to IAS 19 - Defined Benefit Plans: Employee Contributions
Annual Improvements to IFRSs: 2010-12 Cycle (Dec 2013)
Annual Improvements to IFRSs: 2011-13 Cycle (Dec 2013)
Amendments to IFRS 11- Accounting for Acquisitions of Interests in Joint Operations
Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and Amortization