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Under certain circumstances, financial assets may be
designated as at fair value
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For hybrid contracts, where the host contract is
within the scope of IFRS 9, then the whole instru-
ment is classified in accordance with IFRS 9, without
separation of the embedded derivative. In other
circumstances, the provisions of IAS 39 still apply.
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Voluntary reclassification of financial assets is pro-
hibited. Financial assets shall be reclassified if the
entity changes its business model for the manage-
ment of financial assets. In such circumstances,
reclassification takes place prospectively from the
beginning of the first reporting period after the date
of change of the business model.
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Investments in equity instruments may be measured
at fair value through profit and loss.When such
an election is made, it may not subsequently be
revoked, and gains or losses accumulated in equity
are not recycled to profit or loss on derecognition
of the investment. The election may be made per
individual investment.
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FRS 9 does not allow for investments in equity
instruments to be measured at cost under any
circumstances.
The effective date of the standard is for years beginning
on or after 01 January 2013.
The group expects to adopt the standard for the first time
in the 2014 annual financial statements.
It is unlikely that the standard will have a material impact
on the company’s annual financial statements.
IAS 24 Related Party Disclosures (Revised)
The revisions to IAS 24 include a clarification of the defi-
nition of a related party as well as providing a partial ex-
emption for related party disclosures between govern-
ment-related entities.
In terms of the definition, the revision clarifies that joint
ventures or associates of the same third party are related
parties of each other. To this end, an associate includes its
subsidiaries and a joint venture includes its subsidiaries.
The partial exemption applies to related party transac-
tions and outstanding balances with a government which
controls, jointly controls or significantly influences the re-
porting entity as well as to transactions or outstanding
balances with another entity which is controlled, jointly
controlled or significantly influenced by the same gov-
ernment. In such circumstances, the entity is exempt
from the disclosure requirements of paragraph 18 of IAS
24 and is required only to disclose:
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The name of the government and nature of the
relationship
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Information about the nature and amount of each
individually significant transaction and a quan-
titative or qualitative indication of the extent of
collectively significant transactions. Such informa-
tion is required in sufficient detail to allow users to
understand the effect.
The effective date of the amendment is for years begin-
ning on or after 01 January 2011.
The group expects to adopt the amendment for the first
time in the 2012 annual financial statements.
It is unlikely that the amendment will have a material
impact on the company’s annual financial statements.
2010 Annual Improvements Project: Amendments to
IFRS 7 Financial Instruments: Disclosures
Additional clarification is provided on the requirements
for risk disclosures
The effective date of the amendment is for years begin-
ning on or after 01 January 2011.
The group expects to adopt the amendment for the first
time in the 2012 annual financial statements. It is unlikely
that the amendment will have a material impact on the
company’s annual financial statements.