Tiger Brands Integrated Annual Report 2014

ANNUAL FINANCIAL STATEMENTS

Notes to the financial statements

continued

for the year ended 30 September 2014

162

Tiger Brands Limited Integrated Annual Report

2014

Standards and interpretations not yet effective

The group has not applied the following IFRS and

IFRIC Interpretations that have been issued but are

not yet effective and will be adopted by the group

when they become effective. These are as follows:

IFRS 9

Financial Instruments

In July 2014, the IASB issued the final version of

IFRS 9

Financial Instruments

which reflects all

phases of the financial instruments project and

replaces IAS 39

Financial Instruments:

Recognition and Measurement

and all previous

versions of IFRS 9. The standard introduces new

requirements for classification and measurement,

impairment, and hedge accounting. IFRS 9 is

effective for annual periods beginning on or

after 1 January 2018, with early application

permitted. Retrospective application is required,

but comparative information is not compulsory.

Early application of previous versions of IFRS 9

(2009, 2010 and 2013) is permitted if the date

of initial application is before 1 February 2015.

The adoption of IFRS 9 will have an effect on the

classification and measurement of the group’s

financial assets, but no impact on the

classification and measurement of the group’s

financial liabilities. The impact of this standard

will be assessed.

Amendments to IAS 19

Defined Benefit Plans:

Employee Contributions

IAS 19 requires an entity to consider

contributions from employees or third parties

when accounting for defined benefit plans.

Where the contributions are linked to service,

they should be attributed to periods of service as

a negative benefit. These amendments clarify

that, if the amount of the contributions is

independent of the number of years of service,

an entity is permitted to recognise such

contributions as a reduction in the service cost

in the period in which the service is rendered,

instead of allocating the contributions to the

periods of service. This amendment is effective

for annual periods beginning on or after 1 July

2014. It is not expected that this amendment

would be relevant to the group, since none of

the entities within the group has defined benefit

plans with contributions from employees or third

parties. The full impact of this amendment will be

assessed, however this is not expected to have a

significant impact on the consolidated financial

statements.

Annual improvements 2010 – 2012 Cycle

These improvements are effective from 1 July 2014

and are not expected to have a material impact on

the group. They include:

IFRS 2 Share-based Payment

This improvement is applied prospectively and

clarifies various issues relating to the definitions

of performance and service conditions which

are vesting conditions, including:

• A performance condition must contain a

service condition.

• A performance target must be met while the

counterparty is rendering service.

• A performance target may relate to the

operations or activities of an entity, or to those

of another entity in the same group.

• A performance condition may be a market or

non-market condition.

• If the counterparty, regardless of the reason,

ceases to provide service during the vesting

period, the service condition is not satisfied.

This amendment will impact the accounting

treatment of any future share-based payment

transactions that have performance and service

vesting conditions.

IFRS 3

Business Combinations

The amendment is applied prospectively and

clarifies that all contingent consideration

arrangements classified as liabilities (or assets)

arising from a business combination should be

subsequently measured at fair value through profit

or loss whether or not they fall within the scope

of IFRS 9 (or IAS 39, as applicable). This

amendment will impact any future business

combinations which include contingent

consideration.