KUWAIT ENERGY plc GROUP
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Three months ended 31 March 2014
F-11
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IAS 27 (revised 2011) Separate Financial Statements
IAS 28 (revised 2011) Investment in Associates and Joint Ventures
Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Changes in accounting policy and disclosures (continued)
Amendments to IFRS 10, IFRS 12, and IAS 27 – Investment Entities
Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets
Amendments to IAS 39 Novation of Derivatives and Continuance of Hedge Accounting
The Group owns 20% equity interest in Medco L.L.C. (“Medco”), a jointly controlled entity incorporated in Oman,
engaged as operator for Karim Small fields in Oman. Under IAS 31 Investment in Joint Ventures (prior to
transition to IFRS 11), the Group’s interest in Medco was classified as a joint controlled entity and the Group’s
share of the assets, liabilities, revenue, income and expense were proportionately consolidated in the consolidated
financial statements. On adoption of IFRS 11, the Group has determined its interest to be a joint venture and it is
therefore required to be accounted for using the equity method. The table below shows the effect of applying IFRS
11 on condensed consolidated income statement, condensed consolidated balance sheet and consolidated statement
of cash flows. There was no impact on the reported profit for the period, net assets or the basic and diluted earnings
per share.
Impact on condensed consolidated income statement:
Year ended
31.12.13
Continuing Operations
USD 000’s
Decrease in revenue
(21,898)
Decrease in cost of sales
20,065
Increase in share in results of joint venture
1,543
Decrease in profit before tax
(290)
Decrease in taxation charge
290
Net impact on profit for the period from continuing operations
-
Impact on condensed consolidated balance sheet:
31.12.13
USD 000’s
Decrease in property, plant and equipment
(5,115)
Increase in investment in joint venture
10,598
Decrease in trade and other receivables
(6,418)
Decrease in cash and bank balances
(3,969)
Net decrease in assets
(4,904)
Decrease in trade and other payables
(4,616)
Decrease in current tax payable
(288)
Net decrease in liabilities
(4,904)
Net impact on equity
-
