26
TIH Limited
2
Basis of preparation (continued)
2.4 Use of estimates and judgements (continued)
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting
period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in Note 19 –
financial instruments.
2.5 Changes in accounting policies
(i)
Subsidiaries
From 1 January 2014, as a result of Amendments to FRS 110
Consolidated Financial Statements-
Investment Entities
, the Group changed its accounting policy with respect to its investments in
controlled subsidiary investments which do not provide investment-related services. The controlled
subsidiary investments which were previously consolidated are now accounted for at fair value
through profit or loss. In accordance with the amendments, the Company has assessed and
concluded that it meets the qualifying criteria of an investment entity (see Note 3.1(i)).
In accordance with the transitional provisions of the amendments, the Group has applied the new
accounting policy retrospectively and restated the comparative information.
The change in accounting policy resulted in no adjustment to the net assets of the Group and
Company although certain line items in the statement of financial position, statement of profit or
loss, statement of comprehensive income and consolidated statement of cash flows are restated. The
quantitative impact of the change is as follows:
Consolidated statement of financial position
1 January 2013
As previously
reported Adjustments As restated
$’000
$’000
$’000
Group
Cash and cash equivalents
34,855
(96)
34,759
Other receivables
15,265
(2,604)
12,661
Investments
- Available-for-sale
33,458
(954)
32,504
- At fair value through profit or loss
1,865
984
2,849
35,323
30
35,353
Loan receivable
25,588
–
25,588
Total assets
111,031
(2,670)
108,361
