NTUC Income AR 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 31. ASSET HELD FOR SALE In 2017, management committed to a plan to sell a residential investment property. Accordingly, the investment property is presented as an asset held for sale. The sale was completed on 29 January 2018 for a consideration of $1,220,000. 32. LEGAL SUIT Following the dismissal on 20 August 2015 by the Court of Appeal of the Financial Consultants’ appeal to stay court proceedings, no claims arising from those court proceedings have been referred for arbitration against the Co-operative. 33. NEW STANDARDS AND INTERPRETATIONS NOT ADOPTED A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2017, and have not been applied in preparing these financial statements. The Group does not plan to adopt these standards early. These new standards include, among others, FRS 109 Financial Instruments , Amendments to FRS 104 Applying FRS 109 Financial Instruments with FRS 104 Insurance contracts, FRS 115 Revenue from Contracts with Customers and FRS 116 Leases . • FRS 109 replaces most of the existing guidance in FRS 39 Financial Instruments: Recognition and Measurement . It includes revised guidance on classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. FRS 109 is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted. • Amendments to FRS 104 introduce two approaches – an overlay approach and a deferral approach. The amended FRS 104 gives all companies that issue insurance contracts the option to recognise in other comprehensive income, rather than profit or loss, the volatility that could arise when FRS 109 is applied before the new insurance contracts standard is issued (the “Overlay Approach”); and give companies whose activities are predominantly connected with insurance an optional temporary exemption from applying FRS 109 until 1 January 2021 (the “Deferral Approach”). The entities that defer the application of FRS 109 will continue to apply the existing financial instruments standard—FRS 39 until 1 January 2021. An insurer that applies theOverlay Approach shall disclose information to enable users of financial statements to understand how the total amount reclassified between profit or loss and other comprehensive income in the reporting period is calculated and the effect of that reclassification on the financial statements. An insurer that elects to apply the Temporary Exemption from FRS 109 shall disclose information to enable users of financial statements to understand how the insurer qualified for the temporary exemption, and to compare insurers applying the temporary exemption with entities applying FRS 109. An entity shall apply those amendments, which permit insurers that meet specified criteria to apply the Deferral Approach, for annual periods beginning on or after 1 January 2018. An entity shall apply those amendments, which permit insurers to apply the overlay approach to designated financial assets, when it first applies FRS 109. IFRS 17 has been issued by the International Accounting Standards Board. The Accounting Standards Council is expected to issue the local version of this standard in due course. IFRS 17 is expected to have a significant impact on the Group’s financial statements. That standard may impact how the classification and measurement of financial instruments requirements under FRS 109 is adopted. ANNUAL REPORT 2017 EVERY DAY MADE DIFFERENT 123