I in short I
ACCOUNTING The interpretation is effective for annual The amendments to IFRIC 14(AC 447)
periods beginning on or after 1 July 2010. will be issued as amendments to an
CONSOLIDATION OF ZIMBABWEAN Earlier application is permitted. Interpretation to Statements of GAAP once
SUBSIDIARIES approved by the APB. You can access IFRIC
IFRIC 19 will be issued as an Interpretation 14 – IAS 19 in an online SAICA handbook.
On 29 January 2009, following a period to Statements of Generally Accepted
of chronic hyperinflation associated with Accounting Practice (GAAP) once approved DISCLOSURE RELIEF UNDER IFRS 1
the Zimbabwean dollar, the acting Finance by the Accounting Practices Board (APB) at
Minister of Zimbabwe announced that its meeting in January 2010. You can access The IASB has issued an exposure draft
IFRIC 19 in an online SAICA handbook. proposing to amend IFRS 1(AC 138) –
Zimbabwean entities would be permitted
First time adoption of IFRSs. This has
to trade in foreign currency. As a result,
ACCOUNTING FOR PREPAYMENTS OF been issued in South Africa as ED 276.
Zimbabwean entities no longer consider
MINIMUM FUNDING REQUIREMENTS The exposure draft states that an entity
the Zimbabwean dollar to be their
need not provide the comparative prior-
functional currency. CLARIFIED
period information required by the March
2009 amendments to IFRS 7(AC 144)
During the latter half of 2008, inflation The IASB has issued amendments to IFRIC
– Improving Disclosures about Financial
and exchange rate data ceased to be 14(AC 447) – IAS 19(AC 116) – The Limit
Instruments. This applies to first time
published. Due to the difficulty in obtaining on a Defined Benefit Asset, Minimum adopters, adopting before 1 January 2010.
hyperinflationary data for this period, the Funding Requirements and their Interaction
Public Accountants and Auditors Board that will apply in the limited circumstances The proposed amendment to IFRS 1(AC
of Zimbabwe issued guidance titled when an entity is subject to minimum 138) would provide first-time adopters
“Guidance: Change in Functional Currency funding requirements and makes an early with the same relief available to those
2009”. This item, also known as “the payment of contributions to cover those already applying IFRSs when they first
Guide” provides relief to Zimbabwean requirements. These amendments will apply Improving Disclosures about Financial
entities in a number of areas. permit such an entity to treat the benefit of Instruments (Amendments to IFRS 7(AC
such an early payment as an asset. 144)) issued in March 2009.
South African companies that consolidate
Zimbabwean subsidiaries should note These amendments are effective for annual The comment deadline for this exposure draft
that financial statements prepared in periods beginning on or after 1 January was 29 December 2009. The submission is
accordance with the Guide do not result 2011. Earlier application is permitted. available on the SAICA website.
in compliance with International Financial