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AFRICAN DAWN Annual Report 2016

continued Notes to the Financial Statements Annual Financial Statements For the year ended 29 February 2016 2.1 Standards and interpretations not yet effective (continued) Standard Details of amendment Annual periods beginning on or after IFRS 10 Consolidated Financial statements Amendments to address an acknowledged inconsistency between the requirements in IFRS 10 ‘Consolidated Financial Statements’ and those in IAS 28 (2011) ‘Investments in Associates’ in dealing with the sale or contribution of a subsidiary. 1 January 2016 Amendments confirming that the IFRS 10.4(a) consolidation exemption is also available to parent entities which are subsidiaries of investment entities where the investment entity measures its investments at fair value in terms of IFRS 10.31. 1 January 2016 Amendments modifying IFRS 10.32 to state that the consolidation requirement only applies to subsidiaries who are not themselves investment entities and whose main purpose is to provide services which relate to the investment entity’s investment activities. 1 January 2016 Amendments providing relief to non-investment entity investors in associates or joint ventures that are investment entities by allowing the non-investment entity investor to retain, when applying the equity method, the fair value measurement applied by the investment entity associates or joint ventures to their interests in subsidiaries. 1 January 2016 IFRS 11 Joint arrangements Amendments to provide guidance on the accounting for the acquisition of an interest in a joint operation in which the activity of the joint operation constitutes a business. 1 January 2016 IFRS 15 Revenue from Contracts with Customers New guidance on recognition of revenue that requires recognition of revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. 1 January 2016 IFRS 16 Leases • IFRS 16 will require lessees to account for leases ‘on-balance sheet’ by recognising a ‘right-of-use’ asset and a lease liability. IFRS 16 also: • Changes the definition of a lease • Sets requirements on how to account for the asset and liability, including complexities such as non-lease elements, variable lease payments and option periods • Provides exemptions for short-term leases and leases of low value assets • Changes the accounting for sale and leaseback arrangements • Largely retains IAS 17’s approach to lessor accounting • Introduces new disclosure requirements. 1 January 2019 IAS 1 Presentation of Financial Statements Amendments clarifying IAS 1’s specified line items on the statement(s) of profit and loss and other comprehensive income and the statement of financial position can be disaggregated. 1 January 2016 IAS 16 Property, Plant and Equipment Additional requirements of how entities should present subtotals in the statement(s) of profit or loss and other comprehensive income and the statement of financial position. 1 January 2016 Clarification that entities have flexibility as to the order in which they present their notes to the financial statements, but also emphasising the need to consider fundamental principles of comparability and understandability in determining the order. 1 January 2016 58 AFRICAN DAWN ANNUAL REPORT 2016


AFRICAN DAWN Annual Report 2016
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