Tiger Brands Integrated Annual Report 2014

ANNUAL FINANCIAL STATEMENTS

Notes to the financial statements

continued

for the year ended 30 September 2014

164

Tiger Brands Limited Integrated Annual Report

2014

Amendments to IFRS 11

Joint Arrangements:

Accounting for Acquisitions of Interests

The amendments to IFRS 11 require that a joint

operator accounting for the acquisition of an

interest in a joint operation, in which the activity

of the joint operation constitutes a business must

apply the relevant IFRS 3 principles for business

combinations accounting. The amendments also

clarify that a previously held interest in a joint

operation is not remeasured on the acquisition of

an additional interest in the same joint operation

while joint control is retained. In addition, a

scope exclusion has been added to IFRS 11 to

specify that the amendments do not apply when

the parties sharing joint control, including the

reporting entity, are under common control of the

same ultimate controlling party.

The amendments apply to both the acquisition of

the initial interest in a joint operation and the

acquisition of any additional interests in the same

joint operation and are prospectively effective for

annual periods beginning on or after 1 January

2016, with early adoption permitted. These

amendments are not expected to have any

impact to the group.

Amendments to IAS 16 and IAS 38:

Clarification

of Acceptable Methods of Depreciation and

Amortisation

The amendments clarify the principle in IAS 16

and IAS 38 that revenue reflects a pattern of

economic benefits that are generated from

operating a business (of which the asset is part)

rather than the economic benefits that are

consumed through use of the asset. As a result,

a revenue-based method cannot be used to

depreciate property, plant and equipment and

may only be used in very limited circumstances

to amortise intangible assets.

The amendments are effective prospectively for

annual periods beginning on or after 1 January

2016, with early adoption permitted. These

amendments are not expected to have any

impact to the group given that the group has not

used a revenue-based method to depreciate its

non-current assets.

Amendments to IAS 27:

Equity Method in

Separate Financial Statements

The amendments will allow entities to use the

equity method to account for investments in

subsidiaries, joint ventures and associates in their

separate financial statements. Entities already

applying IFRS and electing to change to the

equity method in its separate financial statements

will have to apply that change retrospectively.

For first-time adopters of IFRS electing to use the

equity method in its separate financial statements,

they will be required to apply this method from

the date of transition to IFRS. The amendments

are effective for annual periods beginning on or

after 1 January 2016, with early adoption. This

amendment is not expected to impact the group,

unless the group elects to equity account

investments in subsidiaries.