41 KATHMANDU A NNUAL REPORT  2013 3 STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED STANDARDS NZ IAS 1 Amendments Presentation of Items of Other  Comprehensive Income (effective 1 July 2012): NZ IFRS 13 Fair Value Measurement  (effective 1 January 2013) NZ IFRS 9: Financial Instruments (effective for annual  reporting periods beginning on or after 1 January 2015)  NZ IFRS 10 Consolidated Financial Statements (effective  1 January 2013), revised NZ IAS 27 Separate Financial  Statements  The following new standards and amendments to standards  were applied during the period; The amendment requires entities to separate items presented  in other comprehensive income into two groups, based on  whether they may be recycled to profit or loss in the future.  This will not affect the measurement of any of the items  recognised in the balance sheet or the profit or loss in the  current period. Standards, interpretations and amendments to published  standards that are not yet effective: This standard replaces the parts of NZ IAS 39 Financial  Instruments: Recognition and Measurement that relates to the  classification and measurement of financial instruments.  All financial assets are required to be classified into two  measurement categories: at fair value and at amortised cost.  The determination is based on the entity’s business model for  managing the financial assets and the contractual cash flow  characteristics of the financial asset.  For financial liabilities, the standard retains most of the NZ IAS  39 requirements. An additional presentational requirement has  been added for liabilities designated at fair value through profit  and loss. Where the fair value option is taken, the part of a fair  value change due to an entity’s own credit risk is recorded in  other comprehensive income. NZ IFRS 10 replaces all of the guidance on control and  consolidation in NZ IAS 27 Consolidated and Separate  Financial Statements, and NZ IFRIC 12 Consolidation – Special  Purpose Entities. The core principle that a consolidated entity  presents a parent and its subsidiaries as if they are a single  economic entity remains unchanged, as do the mechanics  of consolidation. However, the standard introduces a single  definition of control that applies to all entities. It focuses on  the need to have both power and rights or exposure to variable  returns before control is present. Power is the current ability to  direct the activities that significantly influence returns. Returns  must vary and can be positive, negative or both. There is  also new guidance on participating and protective rights and  on agent/principal relationships. While the Group does not  expect the new standard to have a significant impact on its  composition, it has yet to perform a detailed analysis of the  new guidance in the context of its various investees that may  or may not be controlled under the new rules.  NZ IAS 27 is renamed Separate Financial Statements and  is now a standard dealing solely with separate financial  statements. Application of this standard by the group and  parent entity will not affect any of the amounts recognised  in the financial statements, but may impact the type of  information disclosed in relation to the parent’s investments  in the separate parent entity financial statements. NZ IFRS 13 explains how to measure fair value and aims to  enhance fair value disclosures. The Group has yet to determine  which, if any, of its current measurement techniques will have  to change as a result of the new guidance. It is therefore not  possible to state the impact, if any, of the new rules on any of  the amounts recognised in the financial statements. However,  application of the new standard will impact the type of  information disclosed in the notes to the financial statements.  The Group does not intend to adopt the new standards before  their operative date, which means that all of the above new  standards would be first applied in the annual reporting period  ending 31 July 2014, with the exception of NZ IFRS 9 that will  be applied in the annual period ending 31 July 2016.