NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  2.  Basis of preparation and accounting policies (cont’d) 2.5  Standards issued but not yet effective (cont’d) IFRS 9  Financial Instruments Investment Entities  (Amendments to IFRS 10, IFRS 12 and IAS 27) IAS 32  Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32 IAS 36  Impairment of Assets – Amendments to IAS 36 IFRIC Interpretation 21  Levies  (“IFRIC 21”) IAS 39  Novation of Derivatives and Continuation of Hedge Accounting – Amendments to IAS 39 IFRS 9, as issued, reflects the first phase of the IASB’s work on the replacement of IAS 39 and applies to classification  and measurement of financial assets and financial liabilities as defined in IAS 39. The standard was initially effective  for annual periods beginning on or after January 1, 2013, but Amendments to IFRS 9 Mandatory Effective Date of IFRS  9 and Transition Disclosures, issued in December 2011, moved the mandatory effective date to January 1, 2015. In  subsequent phases, the IASB is addressing hedge accounting and impairment of financial assets. The adoption of the  first phase of IFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but will  not have an impact on classification and measurements of the Group’s financial liabilities. The Group will quantify the  effect in conjunction with the other phases, when the final standard including all phases is issued. These amendments are effective for annual periods beginning on or after January 1, 2014 provide an exception to the  consolidation requirement for entities that meet the definition of an investment entity under IFRS 10. The exception  to consolidation requires investment entities to account for subsidiaries at fair value through profit or loss. It is not  expected that this amendment would be relevant to the Group, since none of the entities in the Group would qualify  to be an investment entity under IFRS 10. These amendments clarify the meaning of “currently has a legally enforceable right to set-off” and the criteria for non- simultaneous settlement mechanisms of clearing houses to qualify for offsetting. These are effective for annual periods  beginning on or after January 1, 2014. These amendments are not expected to be relevant to the Group. These amendments remove the unintended consequences of IFRS 13 on the disclosures required under IAS 36.  In addition, these amendments require disclosure of the recoverable amounts for the assets or CGUs for which  impairment loss has been recognized or reversed during the period. The amendments are to be applied retrospectively  for annual periods beginning on or after January 1, 2014 but cannot be applied in periods (including comparative  periods) in which IFRS 13 is not applied. The amendments affect disclosures only and will have no impact on our  financial position or performance. IFRIC 21 clarifies that an entity recognizes a liability for a levy when the activity that triggers payment, as identified  by the relevant legislation, occurs. For a levy that is triggered upon reaching a minimum threshold, the interpretation  clarifies that no liability should be anticipated before the specified minimum threshold is reached. IFRIC 21 is effective  for annual periods beginning on or after January 1, 2014. The Group does not expect that IFRIC 21 will have material  financial impact in future financial statements. These amendments provide relief from discontinuing hedge accounting when novation of a derivative designated as  a hedging instrument meets certain criteria. These amendments are effective for annual periods beginning on or after  January 1, 2014. The Group has not novated its derivatives during the current period. However, these amendments  would be considered for future novations. China Yuchai International Limited | Annual Report 2013 63