Notes To The Financial Statements (Continued) 30 June 2015 IFRS 9 – Financial Instruments On 24 July 2014, the IASB issued the final IFRS 9 – Financial Instruments standard, which replaces earlier versions of IFRS 9 and completes the IASB’s project to replace IAS 39 – Financial Instruments : Recognition and Measurement. This standard will include changes in the measurement bases of the organisation’s financial assets to amortised cost, fair value through other comprehensive income or fair value through profit or loss. Even though these measurement categories are similar to IAS 39, the criteria for classification into these categories are significantly different. In addition, the IFRS 9 impairment model has been changed from an “incurred loss” model, which is expected to increase the provision for bad debts recognised in the organisation. The standard is effective for annual periods beginning on or after 1 January 2018 with retrospective application and early adoption permitted. IFRS 15 – Revenue from Contracts with Customers This standard replaces IAS 11 – Construction Contracts, IAS 18 – Revenue, IFRIC 13 – Customer Loyalty Programmes, IFRIC 15 – Agreements for the Construction of Real Estate, IFRIC 18 – Transfer of Assets from Customers and SIC-31 Revenue – Barter Transactions Involving Advertising Services. The standard contains a single model that applies to contracts with customers and two approaches to recognising revenue : at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. This new standard will most likely not have a significant impact on the organisation. The standard is effective for annual periods beginning on or after 1 January 2017, with early adoption permitted under IFRS. Use of estimates and judgements The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods beginning on or after 1 January 2017, with early adoption permitted under IFRS. In particular, significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements include: •Property and equipment (Note 6) 44 Legal Resources Foundation Annual Report 2015