RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS
for the period ended 31 December 2015
New Standards and Interpretations
2.1 Standards and Interpretations not yet effective
There are standards and interpretations in issue that are
not yet effective. These include the following standards and
interpretations that are applicable to the company and may
have an impact on future financial statements:
Disclosure Initiative (Amendments to IAS 1)
The amendments provide additional guidance on the
application of materiality and aggregation when preparing
financial statements. The amendments apply for annual periods
beginning on or after 1 January 2016 and early application is
This amendment is not expected to impact the RCS Group.
IFRS 9 Financial Instruments
IFRS 9 (2009) introduces new requirements for the
classification and measurement of financial assets. Under
IFRS 9 (2009), financial assets are classified and measured
based on the business model in which they are held and
the characteristics of their contractual cash flows. IFRS 9
(2010) introduces additions relating to financial liabilities.
In addition, the IFRS 9 impairment model has been changed
from an “incurred loss” model in IAS 39 to an “expected loss”
model. The final version of IFRS 9 was issued in July 2014 and
applies to an annual reporting period beginning on or after 1
January 2018 with retrospective application.
is currently doing an impact analysis for the group.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 specifies how and when an entity will recognise
revenue as well as requiring such entities to provide users
of financial statements with more informative, relevant
disclosures. The standard contains a single model that applies
revenue: at a point in time or over time. The model features a
contract-based five-step analysis of transactions to determine
whether, how much and when revenue is recognised. The
standard is effective for annual periods beginning on or after
1 January 2017.
The impact on the financial statements for the RCS Group is
not considered to be material.
IFRS 16 Leases
IFRS 16 sets out the principles for the recognition,
measurement, presentation and disclosure of leases for
both parties to a contract, ie the customer (‘lessee’) and
the supplier (‘lessor’). IFRS 16 replaces the previous leases
Standard, IAS 17 Leases, and related Interpretations. IFRS 16
has one model for lessees which will result in almost all leases
being included on the Statement of Financial position.
The standard is effective for annual periods beginning on or
after 1 January 2019, with early adoption permitted only if the
entity also adopts IFRS 15.
The RCS Group is assessing the potential impact on the
financial statements resulting from the application of IFRS 16.