Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 66

• Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures - Entities are required to apply IFRS 9 to other financial instruments in an associate or joint venture that forms part of the long-term interest in the associate or joint venture and to which the equity method is not applied. IFRS 9 is applied before a share of losses are recognised or the impairment requirements in IAS 28 are applied - Effective date 1 January 2019; • IFRIC 23 Uncertainty over Income Tax Treatments - This interpretation deals with the accounting treatment for prepayments required in respect of disputed tax liabilities (pay now argue later provisions in terms of section 164 of the Tax Administration Act). The accounting treatment of a tax uncertainty must reflect the entity’s view on whether it is probable that the tax authorities will accept an uncertain treatment - Effective date 1 January 2019; • IFRS 17 Insurance Contracts - Revised standard that prescribes the recognition, measurement, presentation and disclosure of insurance contracts to replace IFRS 4, which was always intended to be an interim standard. IFRS 4 allowed national practice to be followed to account for insurance contracts, while IFRS 17 prescribes a common global standard - Effective date 1 January 2021; • IFRS Practice Statement 2 Making Material Judgement - This practice statement provides guidance and an approach to entities in exercising material judgment. The following standards are new or were also amended during the year, but are not likely to have a material impact on the company: • IAS 40 Transfers of investment property; • IFRIC 22 Foreign currency transactions and advance consideration; • IFRS 1 First-time adoption of international financial reporting standards; • IAS 28 Investments in associates and joint ventures; • IFRS 10 and IAS 28 – Sale or Contribution of Assets between Investor and its Associate or Joint Venture (Amendment); • IFRS 2 Classification and measurement of share-based payment transactions (Amended); • Amendments to IFRS 3 and IFRS 11 - Additional guidance for applying the acquisition method to particular types of business combinations; • Amendment to IAS 12 - Accounting for the tax implications of dividends; • Amendment to IAS 23 - Capitalisation of borrowing cost in respect of specific borrowings. The impact of IFRS 9 and IFRS 15 was evaluated. The new standards does not have a significant effect, except for disclosure which will only be disclosed in the April 2019 financial statements. Changes will be done retrospectively with the cumulative effect of applying IFRS 9 and IFRS 15 recognised at the date of initial application with an adjustment to the opening balance of retained earnings for contracts not yet completed at the commencement of the year in which the standard is applied. 65 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 Senwesbel Limited Reg no: 1996/017629/06