42. Accounting standards, interpretations and amendments to published standards not yet effective

Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group's accounting periods beginning on or after 1 August 2006 or later periods, but which the Group has not early adopted. The new standards which are expected to be relevant to the Group's operations are as follows:

Amendment to IAS 39 and IFRS 4 "Financial Guarantee Contracts" (effective from 1 August 2006)

This amendment requires issued financial guarantees, other than those previously asserted by the entity to be insurance contracts, to be initially recognised at their fair value and subsequently measured at the higher of: (a) the unamortised balance of the related fees received and determined; and (b) the expenditure required to settle the commitment at the balance sheet date. Management is currently assessing the impact of this amendment on the Group's financial statements.

Amendment to IAS 39 "Cash Flow Hedge Accounting of Forecast Intragroup Transactions" (effective from 1 August 2006)

This amendment allows the foreign currency risk of a highly probable forecast intragroup transaction to qualify as a hedged item in the consolidated financial statements, provided that: (a) the transaction is denominated in a currency other than the functional currency of the entity entering into that transaction; and (b) the foreign currency risk will affect consolidated profit or loss. Management does not expect adoption of this amendment to have a significant impact on the Group's financial statements.

Amendment to IAS 39 "The Fair Value Option" (effective from 1 August 2006)

This amendment changes the definition of the financial instruments classified at fair value through the income statement and restricts the ability to designate financial instruments as part of this category. Management does not expect adoption of this amendment to have a significant impact on the Group's financial statements.

IFRS 7 "Financial Instruments: Disclosures" (effective from 1 August 2007) and amendment to IAS 1 "Presentation of Financial Statements - Capital Disclosures" (effective from 1 August 2007)

IFRS 7 introduces new disclosures of qualitative and quantitative information about exposure to risks arising from financial instruments including specified minimum disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to market risk. The amendment to IAS 1 introduces disclosures about the level of an entity's capital and how it manages capital. Management is currently assessing the impact of IFRS 7 and the amendment to IAS 1 on the Group's financial statements.

IFRIC 7 "Applying the restatement approach under IAS 29" (effective from 1 August 2006)

IFRS 7 deals with the accounting when an entity identifies the existence of hyperinflation in the economy of its functional currency and how deferred tax items in the opening balance sheet should be restated. The Group has operations in hyperinflationary economies. The Group has assessed the impact of the interpretation and concluded it is not likely to have a significant impact on the Group's financial statements.

IFRIC 8 "Scope of IFRS 2" (effective from 1 August 2006)

IFRIC 8 clarifies that transactions within the scope of IFRS 2 "Share Based Payment" include those in which the entity cannot specifically identify some or all of the goods and services received. The Group has assessed the impact of this interpretation and has concluded it is not likely to have a significant impact on the Group's financial statements.

IFRIC 9 "Reassessment of embedded derivatives" (effective from 1 August 2006)

IFRIC 9 clarifies that an entity should assess whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the contract terms, in which case it is required. The Group has assessed the impact of this interpretation and has concluded it is not likely to have a significant impact on the Group's financial statements.