NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  2.  Basis of preparation and accounting policies (cont’d) 2.4  Changes in accounting policy and disclosures (cont’d) New and amended standards and interpretations (cont’d) IFRS 7  Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities – Amendments to IFRS 7 IFRS 10  Consolidated Financial Statements,  IAS 27  Separate Financial Statements These amendments require an entity to disclose information about rights to set-off related arrangements (e.g.,  collateral agreements). The disclosures would provide users with information that is useful in evaluating the effect of  netting arrangements on an entity’s financial position. The new disclosures are required for all recognized financial  instruments that are set off in accordance with IAS 32  Financial Instruments: Presentation . The disclosures also apply to  recognized financial instruments that are subject to an enforceable master netting arrangement or similar agreement,  irrespective of whether they are set off in accordance with IAS 32. These amendments were effective for annual periods  beginning on or after January 1, 2013. The amendment has no impact on the Group. IFRS 10 replaces the portion of IAS 27  Consolidated and Separate Financial Statements  that addresses the accounting for  consolidated financial statements. It also addresses the issues raised in SIC-12  Consolidation  –  Special Purpose Entities . IFRS 10 establishes a single control model that applies to all entities including special purpose entities. The changes  introduced by IFRS 10 will require management to exercise significant judgment to determine which entities are  controlled and therefore are required to be consolidated by a parent, compared with the requirements that were in  IAS 27. This standard was effective for annual periods beginning on or after January 1, 2013 and had no impact to the  currently held investments of the Group. IFRS 11 replaces IAS 31  Interests in Joint Ventures  and SIC-13  Jointly-controlled Entities  –  Non-monetary Contributions  by Venturers . IFRS 11 removes the option to account for jointly controlled entities (“JCEs”) using proportionate  consolidation. Instead, JCEs that meet the definition of a joint venture must be accounted for using the equity method.  This standard was effective for annual periods beginning on or after January 1, 2013. The amendment has no impact  on the Group. IFRS 12 sets out the requirements for disclosures relating to an entity’s interests in subsidiaries, joint arrangements,  associates and structured entities. The requirements in IFRS 12 are more comprehensive than the previously existing  disclosure requirements for subsidiaries. For example, where a subsidiary is controlled with less than a majority of  voting rights. While the Group has subsidiaries with material non-controlling interests, there are no unconsolidated  structured entities. IFRS 12 disclosures are provided in Notes 4 – 6. IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change  when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS.  IFRS 13 defines fair value as an exit price. As a result of the guidance in IFRS 13, the Group re-assessed its policies for  measuring fair values. IFRS 13 also requires additional disclosures. Application of IFRS 13 has not materially impacted the fair value measurements of the Group. Additional disclosures  where required, are provided in the individual notes relating to the assets and liabilities whose fair values were  determined. Fair value hierarchy is provided in Note 33. China Yuchai International Limited | Annual Report 2013 61 IFRS 12  Disclosure of Interests in Other Entities IFRS 13  Fair Value Measurement IFRS 11  Joint Arrangements (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA) 