Standards and Interpretations issued and not yet effective

New Standards and Interpretations not adopted

According to paragraph 30 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, when an entity has not applied a new Standard or Interpretation that has been issued but is not yet effective, the entity must disclose:
a) this fact; and
b) Known or reasonably estimable information relevant to assessing the possible impact that application of the new Standard or Interpretation will have on the entity’s financial statements in the period of initial application.”

IAS 8.31 goes on to clarify this requirement and recommends the following “disclosures:
a) the title of the new Standard or Interpretation;
b) the nature of the impending change or changes in accounting policy;
c) the date by which application of the Standard or Interpretation is required;
d) the date as at which it plans to apply the Standard or Interpretation initially; and
e) either:
i. a discussion of the impact that initial application of the Standard or Interpretation is expected to have on the entity’s financial statements; or
ii. If that impact is not known or reasonably estimable, a statement to that effect.”

While this disclosure is required, it is important to bear in mind that IFRS’s are applied where they are relevant to the users of the financial statements. In applying this it is important to note that only the amendments or changes expected to, or likely to, impact the entity should be included in this disclosure.

An example of such disclosure is:

Pronouncements issued but not yet effective

Standards, Interpretations and amendments thereto issued but not yet effective up to the date of issuance of the Group’s financial statements are listed below. Only those that the Group reasonably expects to be applicable at a future date have been discussed. The Group intends to adopt these standards, interpretations or amendments when they become effective.

IFRS 3 Business Combinations

The IASB amended the definition of a business to assist preparers in determining whether an acquired set of activities and assets is a business or not. This amendment:

  • narrows the definitions of a business and of outputs;
  • confirms that a business must include inputs and processes, clarifying that:
  1. the inputs and processes together must significantly contribute to creating outputs; and
  2. the process must be substantive
  • removes the assessment of whether market participants are capable of replacing any missing elements;
  • adds guidance in the assessment of whether an acquired process is substantive;
  • introduces an optional fair value concentration test; and
  • Provides illustrative examples.

The adoption of this amendment is applicable to financial years beginning on or after 1 January 2020. These amendments are expected to impact the Group in any business combinations the Group will undertake after the effective date.

Interest rate benchmark reform (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)

Interest rate benchmarks, such as interbank offered rates, play an important role in the global market, indexing products ranging from mortgages to derivatives. The reliability of some existing benchmarks have been undermined and recommendations have been made for their reform, causing major uncertainties. The uncertainties could cause companies to need to discontinue their hedge accounting or designate new hedging relationships. The IASB has amended specific hedge accounting requirements in IFRS 9 and IAS 39 to provide exceptions during this period of uncertainty as discontinuation of hedge accounting solely due to these uncertainties would not provide useful information to the users of the financial statements.

The reform is in process and therefore uncertainties exist.

The Company has applied these amendments to its hedges, which are accounted for in accordance with IAS 39, and has therefore:

  1. Assumed that the interest rate benchmark on which the hedged cash flows are based is not altered as a result of the reform and the forecast transaction remains highly probable.
  2. Assumed that the interest rate benchmark on which the hedged items are based is not altered as a result of the reform in our prospective effectiveness tests.
  3. Not performed the retrospective effectiveness test on the hedge relationships directly affected by the reform.
  4. Only applied the separately identifiable requirement assessment at the inception of the hedging relationships.

The adoption of this amendment is applicable to financial years beginning on or after 1 January 2021.

Below is a list of the current standards and interpretations that have been issued but are not yet effective. For your convenience, the table has been split for those effective on or after 2020 followed by a table for those effective 2019. Please ensure your disclosure is updated as appropriate.


Details of Standard or amendment

Annual periods beginning on or after#

The Conceptual Framework for Financial Reporting1

  • The revised Conceptual Framework is not a standard, and none of the concepts override those in any standard or any requirements in a standard.
  • The purpose of the Conceptual Framework is to:
  1. assist the Board in developing standards,
  2. help preparers develop consistent accounting policies if there is no applicable standard in place and
  3. Assist all parties to understand and interpret the standards.
  • The Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities, and clarifies some important concepts.

1 January 2020

1The changes to the Conceptual Framework may affect the application of IFRS in situations where no standard applies to a particular transaction or event, otherwise it is not expected to impact preparers.

IFRS 1 First-time Adoption of International Financial Reporting Standards

  • Amendment: Subsidiary as a first-time adopter2

a subsidiary is permitted to measure cumulative translation differences at transition date using the amounts reported by its parent, based on the parent’s transition date.

1 January 2022

IFRS 3 Business Combinations                                                                                                  

  • Amendments: Definition of a Business

Appendix A, Appendix B and Illustrative Examples:

  1. Clarifies that a minimum requirement for a business includes inputs and a substantive process that together significantly contribute to create outputs.
  2. Narrows the definition of a business and outputs by placing emphasis on goods and services provided to customers and de-emphasising the ability to reduce costs.
  3. Adds an optional concentration test that permits a simplified assessment of whether an asset or a group of similar assets is not a business.
  • Amendment: Reference to the Conceptual Framework:
  1. update to refer to the 2018 Conceptual Framework;
  2. adds a requirement that transactions and other events within the scope of IAS 37 or IFRIC 21 must be accounted for per IAS 37 and IFRIC 21 to identify the liabilities assumed in a business combination; and
  3. adds an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination.

1 January 2020 (Applicable for business combinations and asset acquisitions with acquisition dates on or after the first annual reporting period beginning on or after this date.)

1 January 2022

Interest Rate Benchmark reform – Phase 1 – Amendments to IFRS 9, IAS 39 and IFRS 7                                             

  • Amendments: provide relief from the potential effects on hedge accounting due to the uncertainties caused by interest rate benchmark reform (the phasing out of interest-rate benchmarks such as the interbank offered rates (IBOR)).
  • Amendments include exceptions to be applied to all hedging relationships that are directly affected by the interest rate benchmark reform.
  • The amendments:
  1. Modify some specific hedge accounting requirements;
  2. Require companies to provide additional information about hedging relationships directly affected by the uncertainties.

1 January 2020, (Previously de-designated hedging relationships cannot be reinstated, and hedge relationships cannot be designated using hindsight.)

2Annual Improvements to IFRS Standards 2018 - 2020

Interest Rate Benchmark reform – Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16

  • Amendments provide temporary relief to address financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR) (‘IBOR reform’) including:
  1. Contractual and cash flow changes - to be treated as changes due to a floating rate of interest.
  2. Changes to hedge designations and documentation - do not result in the discontinuation of the hedge relationship.
  3. The ‘separately identifiable’ requirement - not required when a RFR instrument is designated as a hedge of a risk component.
  4. Additional disclosures required.

1 January 2021

(Restatement of prior periods not required & only permitted if possible without the use of hindsight)

IFRS 9 Financial Instruments

  • Amendment: Fees in the ‘10 per cent’ test for derecognition of financial liabilities 3

- Clarifies which fees must be applied in the application of the ‘10 per cent’ test when assessing whether to derecognise a financial liability. Only include fees paid or received between the borrower and the lender, including those paid

1 January 2022

IFRS 16 Leases

  • Amendment (lessee only) IFRS 16 and Covid-19: to make it easier to account for Covid-19-related rent concessions e.g. rent holidays and temporary rent reductions
  1. exempts lessees from having to consider individual lease contracts to determine whether rent concessions occurring as a direct consequence of the Covid-19 pandemic are lease modifications;
  2. allows lessees to account for such rent concessions as if they were not lease modifications;
  3. Applies to Covid-19-related rent concessions that reduce lease payments due on or before 30 June 2021.

The amendment does not affect lessors.

  • Amendment (lessee only): IFRS 16 and Covid-19 -Extension of practical expedient 

- Relief will now extend to 30 June 2022

  • Amendment to Illustrative Example 134: Lease incentives

-Removes the lessor’s reimbursement of leasehold improvements from the example to resolve any potential confusion regarding the treatment of lease incentives.

1 June 2020

(can be applied immediately in financial statements - interim or annual - not yet authorised for issue)

Extension of rental concession relief:

1 April 2021

No effective date as it is an illustrative example

Annual Improvements to IFRS Standards 2018 - 2020

Annual Improvements to IFRS Standards 2018 - 2020

IFRS 17 Insurance Contracts and Amendments

New standard establishing the principles for the recognition, measurement, presentation and disclosure of insurance contracts. The single accounting model makes use of current estimates.

The amendments are aimed at helping companies implement the Standard and making it easier to explain their financial performance, are designed to:

  1. reduce costs by simplifying some requirements;
  2. make financial performance easier to explain; and
  3. ease transition by deferring the effective date to 2023 and by providing additional relief to reduce the effort required when applying IFRS 17 for the first time.

1 January 2023

(earlier application is permitted if IFRS 9 and IFRS 15 have been applied)

IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

  • Disclosure Initiative relating to the Definition of Material that:
  1. Clarifies that materiality will depend on the nature and/or magnitude of information individually or in combination in the context of the financial statements. 
  2. Explains how ‘obscured’ information is similar to omitting or misstatement.
  3. Replaces the threshold of ‘could influence’ with ‘could reasonably be expected to influence’ in the definition of ‘material’.  The materiality assessment only considers reasonably expected influence on economic decisions of primary users

1 January 2020

IAS 1 Presentation of Financial Statements

  • Amendment: Classification of Liabilities as Current or Non-current:
  1. Classification to be based on whether the right to defer settlement by at least twelve months exists at the end of the reporting period.
  2. Classification is unaffected by expectation of settlement.
  3. Settlement refers to transfer of cash equity instruments, other assets or services.
  4. Clarifies that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.
  • Amendment: Disclosure of Accounting Policies:
  1. Accounting policies to be disclosed where the information is material, by nature or amount.
  2. Explains when accounting policy information is considered material.
  3. Clarifies that when an entity chooses to disclose an immaterial accounting policy, it must not obscure or affect other material or required disclosures.

1 January 2023

1 January 2023

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

  • Amendment: Definition of Accounting Estimates
  1. Distinguishes clearly between a change in accounting policy and a change in accounting estimate.
  2. Revises the definition of an accounting estimate.
  3. Provides reworded and specific examples of accounting estimates.
  4. Clarifies that measurement techniques and inputs used in developing accounting estimates are not accounting policies. 

1 January 2023

IAS 12 Income Taxes

  • Amendment: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
  1. Narrows the scope of the exemption for recognition of taxable/deductible temporary differences that arise on certain transactions. The transaction should not give rise to equal taxable and deductible temporary differences.
  2. Clarifies that deferred tax must be recognised on initial recognition of IFRS 16 leases and similar types of transactions that give rise to the recognition of an asset and a liability, such as decommissioning, restoration and similar liabilities with corresponding amounts recognised as part of the related asset.

1 January 2023

(Earlier application is permitted.)

IAS 16 Property, Plant and Equipment

  • Amendment: Proceeds Before Intended Use

- Prohibits the deduction of proceeds from selling items produced while brings an asset into use from the cost of that asset. The entity must recognise the proceeds from sale, and the cost of producing those items, in profit or loss.

1 January 2022 (retrospectively applied only to items of PPE that are bought in the location and condition necessary to operate as intended by management on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments)

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

  • Amendment: Onerous Contracts — Cost of Fulfilling a Contract

- Specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).

1 January 2022

IAS 41 Agriculture

  • Clarification: Taxation in Fair Value Measurements  5

- Requirement to exclude taxation cash flows when determining fair value of a biological asset through a present value technique removed ensuring consistency with IFRS 13.

1 January 2022

Standards and Interpretations, as well as the amendments thereto, are effective retrospectively, with early application permitted, for annual periods beginning from this date unless otherwise indicated.


Details of Interpretation

Annual periods beginning on or after#

IFRS 3 Business Combinations and IFRS 11 Joint Arrangements

  • Clarification: Previously Held Interests in a Joint Operation6

An entity must remeasure its previously held interest in a joint operation when it obtains control of the business as a business combination achieved in stages

1 January 2019

(prospectively for business combinations on or after this date)

IFRS 9 Financial Instruments

  • Amendments: Prepayment Features with Negative Compensation
  1. Prepayable financial assets with negative compensation may now be classified at amortised cost.
  2. Financial liabilities measured at amortised cost that are modified but are not derecognised must account for a profit or loss at the date of the modification.

1 January 2019

IFRS 16 Leases

  • New standard that introduces a single accounting model for lessees, while the accounting for lessors is left largely unchanged from its predecessor (IAS 17 Leases).

1 January 2019

(lessees have the option to recognise the cumulative effect of initial application of the standard without restating comparatives)

IAS 12 Income Taxes

  • Clarification: Income Tax Consequences of Payments on Instruments Classified as Equity 7

- An entity must account for all income tax consequences (current and deferred tax) of dividend payments consistently with the original transaction.

1 January 2019

IAS 19 Employee Benefits

  • Amendment: Plan Amendment, Curtailment or Settlement

- Specifies how to determine pension expenses when changes to a defined benefit plan occur.

- Required to use the updated assumptions from remeasuring the plan asset and plan liability to determine the current service cost and the net interest for the period for the remainder of the reporting period after the change.

- Clarifies the effect on the requirements regarding the asset ceiling.

1 January 2019

5 Annual Improvements to IFRS Standards 2018 - 2020

6 Annual Improvements to IFRS Standards 2015 - 2017

7 Annual Improvements to IFRS Standards 2015 - 2017

IAS 23 Borrowing Costs

  • Clarification: Borrowing Costs Eligible for Capitalisation8 

- If specific borrowings remain outstanding after the related asset is ready for use, those borrowings become part of the general borrowings.

1 January 2019

IAS 28 Investments in Associates and Joint Ventures

  • Amendment: Long-term Interests in Associates and Joint Ventures

- Long term interests that form part of the net investment in that equity investment are to be accounted for in accordance with IFRS 9 Financial Instruments and not IAS 28.

1 January 2019

IFRIC 23 Uncertainty over Income Tax Treatments

  • When accounting for uncertainties over income tax treatments the following should be considered:
    - Whether tax treatments should be considered collectively or independently;
    - Assume that a taxation authority will examine amounts reported to it with full knowledge of relevant information when doing so;
    - Whether it is probable that the tax authority will accept each tax treatment when determining tax effect;
    - The judgements and estimates must be reassessed if facts and circumstances change.

1 January 2019

# Standards and Interpretations, as well as the amendments thereto, are effective retrospectively, with early application permitted, for annual periods beginning from this date unless otherwise indicated.

Adoption of Standards and Interpretations

When an entity adopts a Standard or Interpretation either when required or f it elects to adopt it early, disclosure of this fact is required, which, in terms of IAS 8.28 includes the following:
a) the title of the Standard or Interpretation;
b) when applicable, that the change in accounting policy is made in accordance with its transitional provisions;
c) the nature of the change in accounting policy;
d) when applicable, a description of the transitional provisions;
e) when applicable, the transitional provisions that might have an effect on future periods;
f) for the current period and each prior period presented, to the extent practicable, the amount of the adjustment:
• for each financial statement line item affected; and
• if IAS 33 Earnings per Share applies to the entity, for basic and diluted earnings per share;
g) the amount of the adjustment relating to periods before those presented, to the extent practicable; and
h) if retrospective application required by paragraph 19(a) or (b) is impracticable for a particular prior period, or for periods before those presented, the circumstances that led to the existence of that condition and a description of how and from when the change in accounting policy has been applied.

8 Annual Improvements to IFRS Standards 2015 – 2017

This disclosure will only be made where it is material and relevant.

An example of such disclosure is:

Changes in accounting policy and disclosures
New and amended standards and interpretations
The Group applied for the first time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2019.
The nature and the impact of each new standard and amendment is described below:

IFRS 16 Leases

IFRS 16 Leases replaces IAS 17 Leases along with three Interpretations (IFRIC 4 Determining whether an Arrangement contains a Lease, SIC 15 Operating Leases-Incentives and SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease).

The adoption of this new Standard has resulted in the Group recognising a right-of-use asset and related lease liability in connection with all former operating leases except for those identified as low-value or having a remaining lease term of less than 12 months from the date of initial application

For those leases previously classified as finance leases, the right-of-use asset and lease liability are measured at the date of initial application at the same amounts as under IAS 17 immediately before the date of initial application.

The new Standard has been applied using the modified retrospective approach, with the cumulative effect of adopting IFRS 16 being recognised in equity as an adjustment to the opening balance of retained earnings for the current period. Prior periods have not been restated.

In applying IFRS 16 for the first time, the group has used the following practical expedients permitted by the standard:

  • applying a single discount rate to a portfolio of leases with reasonably similar characteristics
  • relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as at 1 January 2019
  • accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases
  • excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application, and
  • using hindsight in determining the lease term where the contract contains options to extend or terminate the lease.


New Standards and Interpretations issued and not yet effective
New Standards and Interpretations issued and not yet effective