Notes to the Consolidated Financial Statements for the Year Ended 30 June 2014 AASB 2014-1 Amendments to Australian Accounting Standards  (d) Revenue Accounting for Acquisitions of Interests in Joint Operations  (e) Income Tax AASB 9 Financial Instruments  Information on new standards, amendments and interpretations that are  expected to be relevant to the Group’s financial statements is provided  below. Certain other new standards and interpretations have been issued  but are not expected to have a material impact on the Group’s financial  statements. Part A of AASB 2014-1 makes amendments to various Australian  Accounting Standards arising from the issuance by the International  Accounting Standards Board (IASB) of International Financial  Reporting Standards Annual Improvements to IFRSs 2010-2012 Cycle  and Annual Improvements to IFRSs 2011-2013 Cycle. Among other  improvements, the amendments arising from Annual Improvements to  IFRSs 2010-2012 Cycle:  (a) clarify that the definition of a ‘related party’ includes a management  entity that provides key management personnel services to the reporting  entity (either directly or through a group entity); and  (b) amend AASB 8 Operating Segments to explicitly require the disclosure  of judgements made by management in applying the aggregation criteria.  Part E of AASB 2014-1 makes amendments to Australian Accounting  Standards to reflect the AASB’s decision to defer the mandatory  application date of AASB 9 Financial Instruments to annual reporting  periods beginning on or after 1 January 2018. Part E also makes  amendments to numerous Australian Accounting Standards as a  consequence of the introduction of Chapter 6 Hedge Accounting into  AASB 9 and to amend reduced disclosure requirements for AASB  7 Financial Instruments: Disclosures and AASB 101 Presentation of  Financial Statements.  The amendments to IFRS 11 state that an acquirer of an interest in a  joint operation in which the activity of the joint operation constitutes a  ‘business’, as defined in IFRS 3 Business Combinations, should:  Revenue from the granting of licenses is recognised in accordance  with the terms of the relevant agreements and is usually recognised  on an accruals basis, unless the substance of the agreement provides  evidence that it is more appropriate to recognise revenue on some  other systematic rational basis. Interest revenue is recognised on a  proportional basis taking into account the interest rates applicable to the  financial assets. Revenue from the rendering of a service is recognised  upon the delivery of the service to the customers. All revenue is stated  net of the amount of goods and services tax (GST).  Government grants are recognised at fair value where there is  reasonable assurance that the grant will be received and all grant  conditions will be met. Grants relating to expense items are recognised  as income over the periods necessary to match the grant costs they are  compensating. Grants relating to assets are credited to deferred income  at fair value and are credited to income over the expected useful life of  the asset on a straight line basis. Research and Development Grant revenue is recognised as income when  it is received. The charge for current income tax expense is based on the loss for the  year adjusted for any non-assessable or disallowed items. It is calculated  using tax rates that have been enacted or are substantially enacted by  reporting date.  Deferred tax is accounted for using the liability method in respect of  temporary differences arising between the tax bases of assets and  liabilities and their carrying amounts in the financial statements. No  deferred income tax will be recognised from the initial recognition of an  asset or liability, excluding a business combination, where there is no  effect on accounting or taxable profit or loss.  Deferred tax is calculated at the tax rates that are expected to apply to  the period when the asset is realised or liability is settled. Deferred tax  is credited in the statement of comprehensive income except where it  relates to items that may be credited directly to equity, in which case  the deferred tax is adjusted directly against equity. Deferred income tax  assets are recognised to the extent that it is probable that future tax  AASB 9 introduces new requirements for the classification and  measurement of financial assets and liabilities. These requirements  improve and simplify the approach for classification and measurement of  financial assets compared with the requirements of AASB 139. The main  changes are:  (a) Financial assets that are debt instruments will be classified based on  (1) the objective of the entity’s business model for managing the financial  assets; and (2) the characteristics of the contractual cash flows.  (b) Allows an irrevocable election on initial recognition to present gains  and losses on investments in equity instruments that are not held for  The Australian Accounting Standards Board (AASB) is expected to issue  the equivalent Australian amendment shortly.  trading in other comprehensive income (instead of in profit or loss).  Dividends in respect of these investments that are a return on investment  can be recognised in profit or loss and there is no impairment or recycling  on disposal of the instrument.  (c) Financial assets can be designated and measured at fair value through  profit or loss at initial recognition if doing so eliminates or significantly  reduces a measurement or recognition inconsistency that would arise  from measuring assets or liabilities, or recognising the gains and losses  on them, on different bases.  (d) Where the fair value option is used for financial liabilities the change  in fair value is to be accounted for as follows:  If this approach creates or enlarges an accounting mismatch in the profit  or loss, the effect of the changes in credit risk are also presented in profit  or loss.  -  The change attributable to changes in credit risk are presented in  other comprehensive income (OCI); and  -  The remaining change is presented in profit or loss.  -  apply all of the principles on business combinations accounting  in IFRS 3 and other IFRSs except principles that conflict with the  guidance of IFRS 11. This requirement also applies to the acquisition  of additional interests in an existing joint operation that results in the  acquirer retaining joint control of the joint operation (note that this  requirement applies to the additional interest only, i.e. the existing  interest is not remeasured) and to the formation of a joint operation  when an existing business is contributed to the joint operation by  one of the parties that participate in the joint operation; and  -  provide disclosures for business combinations as required by IFRS 3  and other IFRSs.  Page 24 Benitec Biopharma Ltd  Annual Report 2014