NOTES TO THE FINANCIAL STATEMENTS
02. Summary of significant accounting policies:// CONTINUED New and amended accounting standards adopted
—— NZ IFRS 9 (2014) Financial Instruments The group has previously early adopted NZ IFRS 9 (2013) Financial Instruments with a date of initial application of 1 July 2014. The group has now adopted the final phase of NZ IFRS 9 (2014) Financial Instruments with initial application date of 1 July 2016. This completes the early adoption of NZ IFRS 9. This phase of the standard introduces an ‘expected credit loss’ (ECL) model that replaces the existing ‘incurred loss’ model under IAS 39 Financial Instruments . Under NZ IFRS 9, ECLs are assessed on a forward- looking basis at the time of initial recognition, and measured on a 12-month or lifetime basis. The group have adopted the simplified approach for trade receivables, where lifetime expected losses are assessed at initial recognition and throughout the life of the asset, with an allowance recognised should the assessment indicate an ECL exists. The adoption of the final phase of NZ IFRS 9 (2014) does not have a material impact on the group’s financial results in the current year or in the comparative period. As a result, no retrospective adjustments have been made. —— Disclosure Initiative (Amendments to IAS 1) In the year ended 30 June 2016, the group early adopted the Disclosure Initiative ( Amendments to IAS 1 ), which is mandatory for the group in the current period.
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