Icon Energy Limited Annual Report 2016

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2016 NOTE 27 - STATEMENT OF ACCOUNTING POLICIES (a) • • • • • • • • NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Standards and Interpretations issued but not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2016 reporting periods. Some of them are available for early adoption at 30 June 2016, but have not been applied in preparing this financial report. The consolidated entity's assessment of the impact of these new standards and interpretations is set out below: AASB 9 Financial Instruments includes requirements for the classification and measurement of financial assets resulting from the first part of Phase 1 of the project to replace AASB 139 Financial Instruments: Recognition and Measurement . AASB 9 is applicable to annual reporting periods beginning on or after 1 January 2018. The entity has not yet determined the potential effect of the standard. AASB 15 Revenue from Contracts with Customers establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. AASB 15 will supersede the current revenue recognition guidance including AASB 118 Revenue , AASB 111 Construction Contracts and the related Interpretations when it becomes effective. Effective for annual reporting periods beginning on or after 1 January 2018. AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations . The amendments to AASB 11 provide guidance on how to account for the acquisition of a joint operation that constitutes a business as defined in AASB 3 Business Combinations . The amendments to AASB 11 apply prospectively for annual periods beginning on or after 1 January 2016. AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation . The amendments to AASB 116 prohibit entities from using a revenue-based depreciation method for items of property, plant and equipment. The amendments apply prospectively for annual periods beginning on or after 1 January 2016. AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture . Effective for annual reporting periods beginning on or after 1 January 2018. AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle . Effective for annual reporting periods beginning on or after 1 January 2016. AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 . Effective for annual reporting periods beginning on or after 1 January 2016. The following is a summary of the material accounting policies adopted by the consolidated entity in the preparation of the financial statements. The accounting policies have been consistently applied unless otherwise stated. Changes in Accounting Policies Standards and Interpretations adopted The consolidated entity has adopted all the new, revised or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period. Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. AASB 16 Leases provides a comprehensive model to identify lease arrangements and mainly affects the accounting by lessees.The standard removes the distinction between operating and financing leases and requires lessees to recognise all leases on the statement of financial position, except for short-term leases and low value assets leases. A "right-of-use" asset and a financial liability to pay rentals will be recognised in the statement of financial position. Effective for annual reporting periods beginning on or after 1 January 2019. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2016 FINANCIAL REPORT 60 ICON ENERGY ANNUAL REPORT 2016