Tiger Brands Integrated Annual Report 2014

161

Tiger Brands Limited Integrated Annual Report

2014

Annual financial statements

IFRS 11

Joint Arrangements

. IFRS 11 describes

the accounting for joint arrangements with joint

control; proportionate consolidation will no

longer be permitted for joint ventures and as such

will result in a change in the group’s accounting

policy from proportionate consolidation to equity

accounting when the new standard is adopted.

Adoption of this standard had no impact on the

consolidated financial statements.

IFRS 12

Disclosure of Interests in Other Entities

IFRS 12 includes all the disclosures that are

required relating to an entity’s interests in

subsidiaries, joint arrangements, associates and

structured entities. Adoption of this new standard

has resulted in additional disclosures.

IFRS 13

Fair Value Measurements.

IFRS 13

provides guidance on how to measure fair value

of financial and non-financial assets and

liabilities when fair value measurement is

required or permitted by IFRS. Adoption of this

new standard has resulted in additional

disclosures.

IAS 19

Employee Benefits

(Revised). Numerous

changes to IAS 19 have been made. The two

most significant of these relate firstly to short and

long-term benefits that will now be distinguished

based on the expected timing of settlement,

rather than employee entitlement. The adoption

of this has not had an impact on the

consolidated financial statements. The second

item relates to the corridor mechanism for

pension plans being removed. This means all

changes in the value of defined benefit plans are

recognised as they occur. Those movements are

recorded in profit or loss and other

comprehensive income as follows:

• Profit or loss is charged with a service cost

and a net interest income or expense. The

net interest income or expense is the product

of the net liability or asset and the discount

rate used to measure the obligation – both

as at the start of the year. This removes the

current concept of expected return on plan

assets – where income is credited with the

expected long-term yield on the assets in

the fund.

• “Remeasurements” will be recorded in other

comprehensive income. These are all other

movements in the statement of financial

position amount (essentially these are

currently described as actuarial gains and

losses and any effects of the restriction of a

surplus to its recoverable amount).

IAS 27

Separate Financial Statements

. The scope

of IAS 27, as revised, is limited to the

accounting for investments in subsidiaries, joint

ventures and associates in the separate financial

statements of the investor. The amendment was

issued in response to the issue of IFRS 10.

Adoption of this standard had no impact on the

separate financial statements.

IAS 28

Investments in Associates and Joint

Ventures

(consequential revision due to the issue

of IFRS 10 and 11). The revised standard caters

for joint ventures (now accounted for by applying

the equity accounting method) in addition to

prescribing the accounting for investments in

associates. Adoption of this standard had no

impact on the separate and consolidated

financial statements.

IAS 36

Recoverable Amount Disclosures for

Non-financial Assets

— Amendments to IAS 36.

The amendments clarify the disclosure

requirements in respect of fair value less costs of

disposal. When IAS 36 was originally changed

as a consequence of IFRS 13, the IASB intended

to require disclosure of information about the

recoverable amount of impaired assets if that

amount was based on fair value less costs to sell.

However, as written, an entity was required to

disclose the recoverable amount for each

cash-generating unit for which the carrying

amount of goodwill or intangible assets with

indefinite useful lives allocated to that unit was

significant in comparison to the entity’s total

carrying amount of goodwill or intangible assets

with indefinite useful lives. This requirement has

been deleted by the amendments. The group has

early adopted IAS 36

Impairment

(amended)

and therefore does not disclose the recoverable

amounts of the CGUs.