AFRICAN DAWN ANNUAL REPORT 2019 55 Accounting Policies continued Unlikely there will be a material impact Standard/ Interpretation Effective date: Years beginning on or after Prepayment Features with Negative compensation - Amendment to IFRS 9 01 January 2019 Amendments to IAS 12 Income Taxes: Annual Improvements to IFRS 2015 - 2017 cycle 01 January 2019 Amendments to IAS 23 Borrowing Costs: Annual Improvements to IFRS 2015 - 2017 cycle 01 January 2019 Uncertainty over Income Tax Treatments 01 January 2019 Standard that will have a material impact IFRS 16 provides the principles for the recognition, measurement, presentation and disclosure of leases. The standard introduces a single accounting model for lessees building on the principle that all leases result in the lessee being entitled to use an asset and, if lease payments are made over time, obtaining financing. The standard eliminates the distinction of operating and financing leases for lessees resulting in a more faithful representation of the lessee’s assets and liabilities and improved transparency regarding the lessee’s financial leverage and capital employed. Lessor accounting is left largely unchanged from its predecessor (IAS 17 Leases). The current estimate of the impact of the above has been summarised below: • increase in right of use asset: R1,7 million; • increase in lease obligation: R1,6 million; • decrease in operating lease payables R0,929 million; • increase in finance costs: R0,07 million; • increase in depreciation and amortisation: R0,929 million; • decrease in operating lease expense: R0,928 million; and • decrease in net profit: R0,07 million. The group expects to adopt IFRS 16 on its effective date, in the 2020 financial year, commencing on 1 June 2019 and will not adjust retrospectively.
AFDAWN AR FINAL 2019
To see the actual publication please follow the link above