Scribd
Upload
19 views2 pages

2023 Standards For Financial Statements

The document outlines new accounting standards and interpretations adopted by the company for the 2023 financial year, including amendments to IAS 12, IAS 1, IAS 8, and IAS 1 regarding liability classification. These amendments introduce changes in deferred tax recognition, materiality in accounting policy disclosures, definitions of accounting estimates, and criteria for classifying liabilities. The company is also set to adopt IFRS 17 for insurance contracts, with all changes effective for years beginning on or after January 1, 2023.

Uploaded by

daoloruntoba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
19 views2 pages

2023 Standards For Financial Statements

The document outlines new accounting standards and interpretations adopted by the company for the 2023 financial year, including amendments to IAS 12, IAS 1, IAS 8, and IAS 1 regarding liability classification. These amendments introduce changes in deferred tax recognition, materiality in accounting policy disclosures, definitions of accounting estimates, and criteria for classifying liabilities. The company is also set to adopt IFRS 17 for insurance contracts, with all changes effective for years beginning on or after January 1, 2023.

Uploaded by

daoloruntoba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

3.

New Standards and Interpretations

3.1 Standards and interpretations effective and adopted in the current year

In the current year, the company has adopted the following standards and interpretations that are effective for the
current financial year and that are relevant to its operations:

Deferred tax related to assets and liabilities arising from a single transaction - Amendments to IAS 12

The amendment adds an additional requirement for transactions which will not give rise to the recognition of a
deferred tax asset or liability on initial recognition. Previously, deferred tax would not be recognised on the initial
recognition of an asset or liability in a transaction which is not a business combination and at the time of the
transaction affects neither accounting profit or loss. The additional requirement provides that the transaction, at the
time of the transaction must not give rise to equal taxable and deductible temporary differences.

The effective date of the amendment is for years beginning on or after 1 January 2023.

The company has adopted the amendment for the first time in the 2023 financial statements.

The impact of the amendment is set out in note Changes in Accounting Policy.

Disclosure of accounting policies: Amendments to IAS 1 and IFRS Practice Statement 2

IAS 1 was amended to require that only material accounting policy information shall be disclosed in the financial
statements. The amendment will not result in changes to measurement or recognition of financial statement items,
but management will undergo a review of accounting policies to ensure that only material accounting policy
information is disclosed.

The effective date of the amendment is for years beginning on or after 1 January 2023.

The company has adopted the amendment for the first time in the 2023 financial statements.

The impact of the amendment is set out in note Changes in Accounting Policy.

Definition of accounting estimates: Amendments to IAS 8

The definition of accounting estimates was amended so that accounting estimates are now defined as "monetary
amounts in financial statements that are subject to measurement uncertainty."

The effective date of the amendment is for years beginning on or after 1 January 2023.

The company has adopted the amendment for the first time in the 2023 financial statements.

The impact of the amendment is set out in note Changes in Accounting Policy.

Classification of Liabilities as Current or Non-Current - Amendment to IAS 1

The amendment changes the requirements to classify a liability as current or non-current. If an entity has the right at
the end of the reporting period, to defer settlement of a liability for at least twelve months after the reporting period,
then the liability is classified as non-current.

If this right is subject to conditions imposed on the entity, then the right only exists, if, at the end of the reporting
period, the entity has complied with those conditions.

In addition, the classification is not affected by the likelihood that the entity will exercise its right to defer settlement.
Therefore, if the right exists, the liability is classified as non-current even if management intends or expects to settle
the liability within twelve months of the reporting period. Additional disclosures would be required in such
circumstances.

The effective date of the amendment is for years beginning on or after 1 January 2023.

The company has adopted the amendment for the first time in the 2023 financial statements.

The impact of the amendment is set out in note Changes in Accounting Policy.
IFRS 17 Insurance Contracts

The IFRS establishes the principles for the recognition, measurement, presentation and disclosure of insurance
contracts issued.

The effective date of the standard is for years beginning on or after 1 January 2023.

The company expects to adopt the standard for the first time in the 2023 financial statements.

The impact of the standard is set out in note Changes in Accounting Policy.

You might also like