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AFRICAN DAWN Annual Report 2016

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 continued Annual periods beginning on or after IAS 16 Property, Plant and Equipment Amendments to prohibit the use of a revenue-based depreciation method for property, plant and equipment, as well as guidance in the application of the diminishing balance method for property, plant and equipment. 1 January 2016 Amendments specifying that because the operation of bearer plants is similar in nature to manufacturing, they should be accounted for under IAS 16 rather than IAS 41. The produce growing on the bearer plants will continue to be within the scope of IAS 41. 1 January 2016 IAS 19 Employee Benefits Annual Improvements 2012–2014 Cycle: lAS 19.83 requires that the currency and term of the corporate or government bonds used to determine the discount rate for post- employment benefit obligations must be consistent with the currency and estimated term of the obligations. The amendments clarify that the assessment of the depth of the corporate bond market shall be made at the currency-level rather than the country- level. 1 July 2016 IAS 27 Consolidated and Separate Financial Statements Amendments to introducing a third option which allows entities to account for investments in subsidiaries, joint ventures and associates under the equity method in their separate financial statements 1 January 2016 IAS 28 Investments in Associates 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. In addition IAS 28 (2011) has been amended to clarify that when determining whether assets that are sold or contributed constitute a business, an entity shall consider whether the sale or contribution of those assets is part of multiple arrangements that should be accounted for as a single transaction. 1 January 2016 IAS 34 Interim Financial Reporting Annual Improvements 2012–2014 Cycle: The amendments clarify the meaning of disclosure of information elsewhere in the interim financial report’ and require the inclusion of a cross-reference from the interim financial statements to the location of this information. The amendments specify that this information must be available to users of the interim financial statements on the same terms as the interim financial statements and at the same time, or the interim financial statements will be incomplete. 1 July 2016 IAS 38 Intangible Assets Amendments present a rebuttable presumption that a revenue-based amortisation method for intangible assets is inappropriate except in two limited circumstances, as well as provide guidance in the application of the diminishing balance method for intangible assets 1 January 2016 AFRICAN DAWN ANNUAL REPORT 2016 59


AFRICAN DAWN Annual Report 2016
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