NOTES TO THE FINANCIAL STATEMENTS - NOTE 50


 

50. New standards and interpretations
50.1 Standards, interpretations and amendments to published standards that are not yet effective

The following new standards, interpretations and amendments to existing standards have been published that are applicable for future accounting periods but have not been adopted early by the group:

Amendments to IAS 32 Financial instruments: presentation (effective 1 January 2014)

The amendments to IAS 32 were issued to address inconsistencies in current practice when applying the off setting criteria in IAS 32 Financial instruments: presentation. The amendments clarify the meaning of currently has a legally enforceable right of set-off, and that certain gross settlement systems may be considered equivalent to net settlement. The group is currently in the process of evaluating the detailed requirements of this amendment to assess the possible impact on the group’s financial statements.

IFRS 7 Financial instruments: disclosure (effective 1 January 2014)

The amendments to IFRS 7 require additional disclosure on transfer transactions of financial assets, including the possible effects of any residual risks that the transferring entity retains, if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period. The amendments also requires additional disclosure on offsetting financial assets and financial liabilities. These amendments are not expected to have a significant impact on the group’s financial statements.

IFRS 9 Financial instruments (effective date unknown)

IFRS 9 (2009) introduces new requirements for the classification and measurement of financial assets. Under IFRS 9 (2009), financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. IFRS 9 (2010) introduces additions relating to financial liabilities. The International Accounting Standards Board currently has an active project to make limited amendments to the classification and measurement requirements of IFRS 9 and add new requirements to address the impairment of financial assets and hedge accounting. The group is continuously assessing the possible impact. The group is currently in the process of evaluating the detailed requirements of this new standard to assess the possible impact on the group’s financial statements.

Amendments to IAS 36 Impairment of assets (effective 1 January 2014)

The amendment on recoverable amount disclosures addresses the disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. The amendment removed certain disclosures of the recoverable amount of CGUs which have been included in IAS 36 by the issue of IFRS 13. The group is busy assessing the impact.

Amendments to IAS 39 Financial instruments: recognition and measurement (effective 1 January 2014)

This amendment provides relief from discontinuing hedge accounting when novation (novation of derivatives) of a hedging instrument to a central counterparty meets specied criteria. The group is busy assessing the impact.

IFRIC 21 – Levies (effective 1 January 2014)

This is an interpretation of IAS 37 Provisions, contingent liabilities and contingent assets. IAS 37 sets out criteria for the recognition of a liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (known as an obligating event). The interpretation clarifies that the obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy. Sets out the accounting for an obligation to pay a levy that is not income tax. The group assessed the impact and no change in the current accounting treatment is expected.

   
50.2 Standards, interpretations and amendments to published standards that are effective and applicable to the group

The group has adopted the following new standards, interpretation and amendments to existing standards for the first time for the financial year ended 31 March 2014. The nature and effect of the changes are as follows:

Amendments to IFRS 7 Financial instruments: disclosures, on asset and liability offsetting (effective 1 January 2013)

This amendment includes new disclosures to facilitate comparison between those entities that prepare IFRS financial statements to those that prepare financial statements in accordance with United States Generally Accepted Accounting Principles. The effect of this change is regarded to be immaterial.

IFRS 10 Consolidated financial statements (effective 1 January 2013)

IFRS 10 introduces a new control model that is applicable to all investees, by focusing on whether the group has power over an investee, exposure or rights to variable returns from its involvement with the investee and ability to use its power to affect those returns.

The group has changed its accounting policy for determining whether it has control over and consequently whether it consolidates its investees. The group reassessed the control conclusion for its investees at 1 April 2013. The effect of this change is regarded to be immaterial.

IFRS 11 Joint arrangements (effective 1 January 2013)

Previously, the structure of the arrangement was the sole focus of the classification. In terms of IFRS 11, the group classified its interests in joint arrangements as either joint operations or joint ventures depending on the group’s rights to the assets and obligations for the liabilities of the arrangements. When making this assessment, the group considers the structure of the arrangements, the legal form of any separate arrangement, the contractual terms of the arrangements and other facts and circumstances.

The group has re-evaluated its involvement in its joint arrangements. There was no change in the accounting of its joint arrangements.

IFRS 12 Disclosures of interests in other entities (effective 1 January 2013)

IFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities. The group has increased the level of disclosure provided for its interests in subsidiaries, joint arrangements, associates and structured entities in line with the requirements of the new standard. Refer to note 8 and 9.

IFRS 13 Fair value measurement (effective 1 January 2013)

IFRS 13 establishes a single framework for measuring fair value and making disclosures about fair value measurements, and when such measurements are required or permitted by other IFRS. In particular, it unifies the definition of fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date. It also replaces and expands the disclosure requirements regarding fair value measurements in other IFRSs, including IFRS 7 Financial instruments: disclosures. The group included additional disclosures in this regard. Refer to note 4.5

In accordance with the transitional provisions of IFRS 13, the group has applied the new fair value measurement guidance prospectively.

Amendments to IAS 1 Presentation of financial statements (effective 1 July 2012)

The group has modified the presentation of items of other comprehensive income in its condensed statement of other comprehensive income, to present separately items that would be reclassified to profit or loss in the future from those that would never be reclassified. Comparative information has been re-presented accordingly.

The adoption of the amendment to IAS 1 had no impact on the recognised assets, liabilities or total comprehensive income of the group.

Amendments to IAS 1 Presentation of financial statements (effective 1 January 2013)

The amendment to IAS 1 gives clarity on when a third statement of financial position is required. This is only required if a retrospective change in accounting policy, a retrospective correction of an error or a reclassification has a material effect on information in the statement of financial position. The effect of the change is regarded as being immaterial.

IAS 19 Employee benefits (effective 1 January 2013) (revised)

The revised IAS 19 had no impact on the accounting policy with respect to the basis for determining the income or expense related to a defined benefit plan as there are no plan assets. There was also no impact as a result of the changes to the definitions of short-term and other long-term benefits or the changes in relation to the timing of recognition of termination benefits.

Amendment to IAS 16 Property, plant and equipment (effective 1 January 2013)

The amendment to IAS 16 clarifies that stand-by equipment is classified as property, plant and equipment if it meets the definition of property, plant and equipment, otherwise it may be seen as inventory. The amendment to IAS 16 did not have a significant impact on the group’s financial statements.

IAS 27 Separate financial statements (effective 1 January 2013) (revised)

The revised IAS 27 carries forward the existing accounting and disclosure requirements for separate financial statements, with minor clarifications. The adoption of the revised IAS 27 had no impact on the separate financial statements of the company.

IAS 28 Investments in associates and joint ventures (effective 1 January 2013)

The revised IAS 28 carries forward the existing accounting and disclosure requirements with limited amendments. The adoption of the revised IAS 28 had no significant impact on the group’s financial statements.

Amendment to IAS 32 Financial instruments: presentation (effective 1 January 2013)

The amendment to IAS 32 removes the concept of net of tax in the distribution to equity holders. The tax effect will be treated in terms of IAS 12. The adoption of the amendment had no impact on the group’s financial statements.