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AFRICAN DAWN 2015 Annual Report

Accounting Policies continued 1.20 Significant judgements and sources of estimation uncertainty (continued) Change in estimate – interest and penalties on income tax and VAT liability As disclosed in the prior year financial statements an estimate was made of the current tax and VAT liabilities relating to Afdawn, Elite and Bhenka, plus the related interest and penalties that would be due to SARS. However, as a result of the section 200 application to SARS being declined in May 2015 (refer to note 13), additional interest and penalties of R5,518 million were due. R2,808 million of the relates to VAT and is recognised as an additional VAT liability in note 22 and R2,710 million of this relates to current income tax and is recognised as an additional current tax liability refer to note 13. This has been accounted for as a change in accounting estimate and recognised in full in the current year. The total group liabilities (including penalties and interest) are as follows: • VAT - R7,709 million (refer to note 22) • Current tax - R14, 840 million (refer to note 13). 2. New Standards and Interpretations 2.1 Standards and interpretations not yet effective The Group has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the Group’s accounting periods beginning on or after 01 March 2015 or later periods. The Group has not yet assessed the impact of any of these amendments and will only adopt them in the period they become effective. Standard Details of amendment AFRICAN DAWN 64 ANNUAL REPORT 2015 Annual periods beginning on or after IFRS 2, Share-based Payment Annual Improvements 2010–2012 Cycle: Amendments added the definitions of performance conditions and service conditions and amended the definitions of vesting conditions and market conditions. 1 July 2014 IFRS 3, Business Combinations Annual Improvements 2010–2012 Cycle: Amendments to the measurement requirements for all contingent consideration assets and liabilities including those accounted for under IFRS 9. Annual Improvements 2011–2013 Cycle: Amendments to the scope paragraph for the formation of a joint arrangement. 1 July 2014 1 July 2014 IFRS 5, Non-current assets Held for Sale and Discontinued Operations Annual Improvements 2012-2014 Cycle: Amendments clarifying that a change in the manner of disposal of a non-current asset or disposal group held for sale is considered to be a continuation of the original plan of disposal, and accordingly, the date of classification as held for sale does not change. 1 January 2016 IFRS 7 Financial Instruments: Disclosures Annual Improvements 2012-2014 Cycle: Amendment clarifying under what circumstances an entity will have continuing involvement in a transferred financial asset as a result of servicing contracts. Annual Improvements 2012-2014 Cycle: Amendment clarifying the applicability of previous amendments to IFRS 7 issued in December 2011 with regard to offsetting financial assets and financial liabilities in relation to interim financial statements prepare. 1 January 2016 1 January 2016 IFRS 8 Operating Segments Annual Improvements 2010–2012 Cycle: Amendments to some disclosure requirements regarding the judgements made by management in applying the aggregation criteria, as well as those to certain reconciliations. 1 July 2014


AFRICAN DAWN 2015 Annual Report
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