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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
101
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
1.
SIGNIFICANT ACCOUNTING POLICIES continued
Annual improvements project
The IASB decided to initiate an annual improvements project in 2007 as a method of making
necessary, but non-urgent, amendments to IFRS that will not be included as part of another major
project. The IASB’s objective was to ease the burden for all concerned.
Improvements to IFRS were issued by the IASB as part of the “annual improvements process” resulting
in the following amendments to standards issued, but not effective for 31 May 2015 year-ends:
IFRS 5 –
Non-current Assets Held-for-Sale and Discontinued Operations
This is an amendment to the changes in methods of disposal – Assets (or disposal groups) are
generally disposed of either through sale or through distribution to owners. The amendment to IFRS 5
clarifies that changing from one of these disposal methods to the other should not be considered a
new plan of disposal, rather it is a continuation of the original plan. There is therefore no interruption
of the application of the requirements in IFRS 5.
The amendment also clarifies that changing the disposal method does not change the date of
classification.
IFRS 7 –
Financial Instruments: Disclosures
Applicability of the offsetting disclosures to condensed interim financial statements – The amendment
removes the phrase “and interim periods within those annual periods” from paragraph 44R, clarifying
that these IFRS 7 disclosures are not required in the condensed interim financial report. However, the
Board noted that IAS 34 requires an entity to disclose an explanation of events and transactions that
are significant to an understanding of the changes in financial position and performance of the entity
since the end of the last annual reporting period. Therefore, if the IFRS 7 disclosures provide a
significant update to the information reported in the most recent annual report, the Board would
expect the disclosures to be included in the entity’s condensed interim financial report.
IFRS 7 –
Financial Instruments: Disclosures
Servicing contracts – The amendment clarifies that a servicing contract that includes a fee can
constitute continuing involvement in a financial asset. An entity must assess the nature of the fee
and arrangement against the guidance for continuing involvement in paragraphs IFRS 7.B30 and
IFRS 7.42C in order to assess whether the disclosures are required.
IAS 19 –
Employee Benefits
Discount rate: regional market issue – The amendment to IAS 19 clarifies that market depth
of high-quality corporate bonds is assessed based on the currency in which the obligation
is denominated, rather than the country where the obligation is located. When there is no deep
market for high-quality corporate bonds in that currency, government bond rates must be used.