151 / 198
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
149
10. Accounting framework
continued
10.3 Standards, amendments and interpretations not yet effective continued
Amendments to IFRS 10 – Consolidated financial statements and IAS 28 – Investments in associates and joint
ventures on sale or contribution of assets
The IASB has issued this amendment to eliminate the inconsistency between IFRS 10 and IAS 28. If the non-monetary
assets sold or contributed to an associate or joint venture constitute a ‘business’, then the full gain or loss will be
recognised by the investor. A partial gain or loss is recognised when a transaction involves assets that do not
constitute a business, even if these assets are housed in a subsidiary.
No effective date has been set. The Group is currently considering the impact on the consolidated financial
statements.
Amendment to IFRS 11 –
Joint arrangements – on acquisition of an interest in a joint operation
This amendment adds new guidance on how to account for the acquisition of an interest in a joint operation that
constitutes a business. The amendments specify the appropriate accounting treatment for such acquisitions.
This statement is effective for periods beginning on or after 1 January 2016. The Group is currently considering the
impact on the consolidated financial statements.
Amendments to IAS 1 –
Presentation of financial statements – disclosure initiative
In December 2014 the IASB issued amendments to clarify guidance in IAS 1 on materiality and aggregation, the
presentation of subtotals, the structure of financial statements and the disclosure of accounting policies.
This statement is effective for periods beginning on or after 1 January 2016. The Group has redesigned the Group
annual financial statements in the current year and is considering further impacts on the consolidated financial
statements.
Amendment to IAS 7 –
Cash Flow Statements
In January 2016, the IASB issued an amendment to IAS 7 introducing an additional disclosure that will enable users
of financial statements to evaluate changes in liabilities arising from financing activities.
The amendment responds to requests from investors for information that helps them better understand changes in
an entity’s debt.
This statement is effective for periods beginning on or after 1 January 2017. The Group does not believe the
statement will have a significant impact as this amendment results only in additional disclosures; there is no financial
impact as a result of this amendment.
Amendment to IAS 12 –
Income Taxes
The amendments were issued to clarify the requirements for recognising deferred tax assets on unrealised losses. The
amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is
below the asset’s tax base. They also clarify certain other aspects of accounting for deferred tax assets.
This statement is effective for periods beginning on or after 1 January 2017. The Group does not believe the
statement will have a significant impact, given that this is a clarification to the existing standard; there is no change in
the underlying principles for the recognition of deferred tax assets.
Amendment to IAS 16 –
Property, plant and equipment
– and IAS 38 –
Intangible assets – on depreciation
and amortisation
In this amendment the IASB has clarified that the use of revenue based methods to calculate the depreciation of an
asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects
factors other than the consumption of the economic benefits embodied in the asset. The IASB has also clarified that
revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits
embodied in an intangible asset.
This statement is effective for periods beginning on or after 1 January 2016. The Group is currently considering the
impact on the consolidated financial statements.