AFRICAN DAWN ANNUAL REPORT 2018 39 Accounting Policies 1. Accounting Policies 1.1 Summary of accounting policies The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, the requirements of the Companies Act of 2008 and the JSE Listing Requirements and Financial reporting pronouncements as issued by the Financial Reporting Standards Council and SAICA financial reporting Guides as issued by the Accounting Practices Committee. The consolidated financial statements have been prepared using the historical cost convention, as modified for certain items measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods or services. The principal accounting policies applied in the preparation of these consolidated financial statements are set out in this Note. These policies have been consistently applied to all the years presented, unless otherwise stated. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas that involve a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 1.18. 1.2 Changes in accounting policies and basis of preparation The following standards have been adopted during the current year ° Amendments to IAS 7: Disclosure initiative The amendment requires entities to provide additional disclosures for changes in liabilities arising from financing activities. Specifically, entities are now required to provide disclosure of the following changes in liabilities arising from financing activities: • changes from financing cash flows; • changes arising from obtaining or losing control of subsidiaries or other businesses; • the effect of changes in foreign exchanges; • changes in fair values; and • other changes. The effective date of the amendment is for years beginning on or after 01 January 2017. The impact of the amendment would result in additional disclosure included in the Note 32 if there were non-cash effects on borrowings . 1.3 Basis of consolidation Subsidiaries Subsidiaries are those entities that are controlled by the Group. Control The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group considers all facts and circumstances relevant to its involvement with an entity to evaluate whether control exists and assesses any changes to the facts and circumstances relevant to the entity and reassesses the consolidation requirements on a continuous basis. Changes in ownership interest in subsidiaries without change in control Transactions with non-controlling interests that do not result in the loss of control are accounted for as transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid or received and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity.
AFRICAN DAWN 2018 Annual Report
To see the actual publication please follow the link above