At the date of approval of the annual financial statements, the following new standards, interpretations and amendments that apply to the Group were in issue
but not yet effective:
| Standard/interpretation |
Description |
Reporting period
beginning on or after |
| IFRS 2 Share-Based Payment |
Amendments dealing with classification and measurement of share-based
payments. The amendments address the effects of vesting conditions on the
measurement of a cash-settled share-based payment; the accounting
requirements for a modification to the terms and conditions of a share-based
payment that changes the classification of the transaction from cash-settled to
equity-settled; and classification of share-based payment transactions with net
settlement features. |
1 January 2018 |
|
|
|
| IFRS 4 Insurance Contracts |
Amendment applying IFRS 9 Financial Instruments with IFRS 4 Insurance
Contracts. |
1 January 2017 |
|
|
|
| IFRS 9 Financial Instruments |
A final version of IFRS 9 has been issued which replaces IAS 39 Financial
Instruments: Recognition and Measurement. The completed standard comprises
guidance on classification and measurement, impairment hedge accounting and
derecognition.
The statement introduces a new approach to the classification of financial assets,
which is driven by the business model in which the asset is held and their cash
flow characteristics. A new business model was introduced which does allow
certain financial assets to be categorised as “fair value through other
comprehensive income” in certain circumstances. The requirements for financial
liabilities are mostly carried forward unchanged from IAS 39.
Changes have been made to the fair value option for financial liabilities to address
the issue of own credit risk.
The new model introduces a single impairment model being applied to all financial
instruments, as well as an “expected credit loss” model for the measurement of
financial assets.
The statement contains a new model for hedge accounting that aligns the
accounting treatment with the risk management activities of an entity, in addition
enhanced disclosures will provide better information about risk management and
the effect of hedge accounting on the financial statements.
It also carries forward the derecognition requirements of financial assets and
liabilities from IAS 39.
Bidvest Bank has embarked on a project to consider the impact of the changes in
the standard on the Group’s financial statements. Preliminary work done indicates
that it will not have a material impact on the financial information. However, the
expanded disclosure requirement and changes in presentation are expected to
change the nature and extent of the Group’s disclosure about its financial
instruments. |
1 January 2018 |
|
|
|
| IFRS 12 Disclosure of Interests in Other
Entities |
Amendments resulting from 2014 – 2016 Annual Improvements Cycle |
1 January 2017 |
|
|
|
| IFRS 15 Revenue from Contracts with
Customers |
The standard requires entities to recognise revenue to depict the transfer
of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for those
goods or services. This core principle is achieved through a five-step methodology
that is required to be applied to all contracts with customers.
The standard will also result in enhanced disclosures about revenue, provide
guidance for transactions that were not previously addressed comprehensively and
improve guidance for multiple-element arrangements.
Due to the diverse nature of the Group’s revenue streams, management will
embark on a detailed project to assess the impact on the Group’s financial
statements. As IFRS 15 requires significant disclosures compared to the current
standard, management anticipates that there will be changes to the nature and
extend of the Group’s disclosure regarding the Group’s revenue. |
1 January 2018 |
|
|
|
| IFRS 16 Leases |
New standard that introduces a single lessee accounting model and requires a
lessee to recognise assets and liabilities for all leases with a term of more than
12 months, unless the underlying asset is of low value. A lessee is required to
recognise a right-of-use asset representing its right to use the underlying leased
asset and a lease liability representing its obligation to make lease payments.
A lessee measures right-of-use assets similarly to other non-financial assets and
lease liabilities similarly to other financial liabilities. As a consequence, a lessee
recognises depreciation of the right-of-use asset and interest on the lease liability,
and also classifies cash repayments of the lease liability into a principal portion and
an interest portion and presents them in the statement of cash flows applying
IAS 7.
The standard contains expanded disclosure requirements for lessees. Lessees will
need to apply judgement in deciding on the information to disclose to meet the
objective of providing a basis for users of financial statements to assess the effect
that leases have on the financial position, financial performance and cash flows of
the lessee.
IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17.
Accordingly, a lessor continues to classify its leases as operating leases or finance
leases, and to account for those two types of leases differently.
The statement also requires enhanced disclosures to be provided by lessors that
will improve information disclosed about a lessor’s risk exposure, particularly to
residual value risk.
A preliminary assessment indicates that the adoption of the new standard will have
a material effect on the Group’s financial statements, owing to significant
high-value long-term operating leases. |
1 January 2019 |
|
|
|
| IFRS 17 Insurance Contracts |
IFRS 17 establishes the principles for the recognition, measurement, presentation
and disclosure of insurance contracts within the scope of the standard. The
objective of IFRS 17 is to ensure that an entity provides relevant information that
faithfully represents those contracts. This information gives a basis for users of
financial statements to assess the effect that insurance contracts have on the
entity’s financial position, financial performance and cash flows.
IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning
on or after 1 January 2021. |
1 January 2021 |
|
|
|
| IAS 7 Cash Flow Statement |
Disclosure Initiative (Amendments to IAS 7), issued in January 2016, added
paragraphs 44A – 44E. An entity shall apply those amendments for annual periods
beginning on or after 1 January 2017. Earlier application is permitted. When the
entity first applies those amendments, it is not required to provide comparative
information for preceding periods. |
1 January 2017 |
|
|
|
|
|
|
|
|
|
| IAS 28 Investments in Associates and
Joint Ventures |
45E Annual Improvements to IFRS 2014 – 2016 Cycle, issued in December 2016,
amended paragraphs 18 and 36A. An entity shall apply those amendments
retrospectively in accordance with IAS 8 for annual periods beginning on or after
1 January 2018. Earlier application is permitted. If an entity applies those
amendments for an earlier period, it shall disclose that fact. |
1 January 2018 |
|
|
|
|
|
|
|
|
|
| IAS 40 Investment Property |
85G Transfers of Investment Property (Amendments to IAS 40), issued in
December 2016, amended paragraphs 57 – 58 and added paragraphs 84C – 84E.
An entity shall apply those amendments for annual periods beginning on or after
1 January 2018. Earlier application is permitted. If an entity applies those
amendments for an earlier period, it shall disclose that fact. |
1 January 2018 |
|
|
|
|
|
|
| IFRIC 22 Foreign Currency Transactions
and Advance Consideration |
|
1 January 2018 |
|
|
|
|
|
|
|
|
|
| IFRIC 23 Uncertainty over Income Tax
Treatment |
|
1 January 2019 |