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AFRICAN DAWN ANNUAL REPORT 14

Notes to the Financial Statements 2. New Standards and Interpretations 2.1 Standards and interpretations effective and adopted in the current year In the current year, the group has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations: IFRS 10 Consolidated Financial Statements Standard replaces the consolidation sections of IAS 27 Consolidated and Separate Financial Statements and SIC 12 Consolidation ñ Special Purpose Entities. The standard sets out a new definition of control, which exists only when an entity is exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to effect those returns through power over the investee. The effective date of the standard is for years beginning on or after 1 January 2013. The group has adopted the standard for the first time in the 2014 financial statements. The adoption of this standard has not had a material impact on the results of the company, but has resulted in more disclosure than would have previously been provided in the financial statements. IFRS 11 Joint Arrangements The standard replaces IAS 31 Interests in Joint Ventures and SIC 13 Jointly Controlled Entities - Non Monetary Contributions by Venturers. The standard defines a Joint arrangement as existing only when decisions about relevant activities requires the unanimous consent of the parties sharing joint control in terms of a contractual arrangement. The standard identifies two types of joint arrangements as: • Joint operations which exist when the entities sharing joint control have direct rights to the assets and obligations for the liabilities of the joint arrangements. In such cases the joint operators recognise their share of the assets and liabilities and profits and losses of the joint arrangements in their financial statements. The effective date of the standard is for years beginning on or after 1 January 2013. The group has adopted the standard for the first time in the 2014 financial statements. AFRICAN DAWN 4 3 ANNUAL REPORT 2014 The impact of the standard is not material. IFRS 12 Disclosure of Interests in Other Entities The standard sets out disclosure requirements for investments in Subsidiaries, associates, joint ventures and unconsolidated structured entities. The disclosures are aimed to provide information about the significance and exposure to risks of such interests. The most significant impact is the disclosure requirement for unconsolidated structured entities or off balance sheet vehicles. The effective date of the standard is for years beginning on or after 1 January 2013. The group has adopted the standard for the first time in the 2014 financial statements. The adoption of this standard has not had a material impact on the results of the company, but has resulted in more disclosure than would have previously been provided in the financial statements. IFRS 13 Fair Value Measurement New standard setting out guidance on the measurement and disclosure of items measured at fair value or required to be disclosed at fair value in terms of other IFRSís. The effective date of the standard is for years beginning on or after 1 January 2013. The group has adopted the standard for the first time in the 2014 financial statements. The impact of the standard is not material.


AFRICAN DAWN ANNUAL REPORT 14
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