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JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
INTEGRATED ANNUAL REPORT 2011
Notes to the Annual Financial Statements
- Continued
Annual Financial Statements for the 15 months ended 30 September 2011
IFRIC 19 Extinguishing Financial Liabilities with
Equity Instruments
IFRIC 19 applies to debt for equity swaps in circumstances
where a debtor and creditor renegotiate the terms of a fi-
nancial liability such that the debtor extinguishes part or
all of the financial liability by issuing equity instruments
to the creditor. Where the debt for equity swap is within
the scope of IFRIC 19, the issue of equity instruments by
the debtor shall be consideration paid to extinguish the
liability and shall be measured at the fair value of the eq-
uity instrument, unless fair value cannot be determined.
If the fair value of the equity instruments cannot be mea-
sured reliably, the issue shall be measured at the fair value
of the financial liability extinguished. If the issue also re-
lates to a modification of any remaining liability, then the
issue shall be allocated to the liability which was extin-
guished and which remains. The difference between the
carrying amount of the liability which was extinguished
and the consideration paid shall be recognised in profit
or loss.
The effective date of the amendment is for years begin-
ning on or after 01 July 2010.
The group has adopted the amendment for the first time
in the 2011 annual financial statements.
The impact of the amendment is not material.
2010 Annual Improvements Project: Amendments to
IFRS 3 Business Combinations
The amendment clarifies the initial measurement of non-
controlling interests.Only those interests which represent
a present ownership interest shall be measured at either
fair value or the present ownership’s proportionate share
in the recognised amounts of the acquiree’s identifiable
net assets. All other components of non-controlling in-
terest shall be measured at their acquisition date fair val-
ues, unless otherwise required by IFRS.
It further provides transitional provisions for dealing with
contingent consideration arrangements in a business
combination that occurred before the effective date of
the revised IFRS 3.
For equity settled share based payment transactions of
the acquiree that the acquirer does not exchange for its
share based payment transactions, vested transactions
shall be measured as part of non-controlling interest at
market based measure. Unvested transactions shall be
measured at market based measure as if acquisition date
were grant date. This measure is then allocated to non-
controlling interest based on the ratio of vesting period
completed to greater of total vesting period or original
vesting period.
The effective date of the amendment is for years begin-
ning on or after 01 July 2010.
The group has adopted the amendment for the first time
in the 2011 annual financial statements.
The impact of the amendment is not material.
2.2 Standards and interpretations not yet
effective
The group has chosen not to early adopt the following
standards and interpretations,which have been published
and are mandatory for the group’s accounting periods be-
ginning on or after 01 October 2011 or later periods:
IFRS 9 Financial Instruments
•
This new standard is the first phase of a three phase
project to replace IAS 39 Financial Instruments:
Recognition and Measurement. Phase one deals
with the classification and measurement of financial
assets. The following are changes from the classifi-
cation and measurement rules of IAS 39:
•
Financial assets will be categorised as those subse-
quently measured at fair value or at amortised cost.
•
Financial assets at amortised cost are those finan-
cial assets where the business model for managing
the assets is to hold the assets to collect contrac-
tual cash flows (where the contractual cash flows
represent payments of principal and interest only).
All other financial assets are to be subsequently
measured at fair value.