Page 31 - GTBANK GAMNBIA 2021 ANNUAL REPORT

depreciation charge for an item of property, plant and Deferred Tax related to Assets and Liabilities arising
equipment used in fulfilling the contract).
from a Single Transaction (Amendments to IAS 12)
The amendments are effective for annual reporting
periods being on or after 1st January 2022.
On 7th May 2021, amendments were issued for IAS 12.

The main change in Deferred Tax related to Assets and
Liabilities arising from a Single Transaction (Amendments to

IAS 12) is an exemption from the initial recognition exemption
Definition of Accounting Estimates (Amendments to provided in IAS 12.15(b) and IAS 12.24. Accordingly, the
IAS 8) initial recognition exemption does not apply to transactions in
which equal amounts of deductible and taxable temporary
IAS 8 Accounting Policies, Changes in Accounting differences arise on initial recognition. This is also explained
Estimates and Errors is applied in selecting and applying
accounting policies, accounting for changes in estimates in the newly inserted paragraph IAS 12.22A.
and reflecting corrections of prior period errors.
Amendments was made on 12th February 2021. The amendments are effective for annual reporting
The changes to IAS 8 focus entirely on accounting periods beginning on or after 1 January 2023. Early
estimates and clarify the following: adoption is permitted.

The definition of a change in accounting estimates is 3.3. Foreign currency translation
replaced with a definition of accounting estimates.
Under the new definition, accounting estimates are (i) Functional and presentation currency
“monetary amounts in financial statements that are
subject to measurement uncertainty”. Items included in the financial statements of the Bank are
Entities develop accounting estimates if accounting measured using the currency of the primary economic
policies require items in financial statements to be environment in which the bank operates (‘the functional
measured in a way that involves measurement currency’).
uncertainty.
The Board clarifies that a change in accounting estimate (ii)Transactions and balances
that results from new information or new developments is
not the correction of an error. In addition, the effects of a Transactions denominated, or that requires settlement, in
change in an input or a measurement technique used to a foreign currency are translated into the functional
develop an accounting estimate are changes in currency using the exchange rates prevailing at the dates
accounting estimates if they do not result from the of the transactions.
correction of prior period errors. Monetary items denominated in foreign currency are
A change in an accounting estimate may affect only the translated using the closing rate as at the reporting date.
current period’s profit or loss, or the profit or loss of both Non-monetary items measured at historical cost
the current period and future periods. The effect of the denominated in a foreign currency are translated with the
change relating to the current period is recognised as exchange rate as at the date of initial recognition; non-
income or expense in the current period. The effect, if any, monetary items in a foreign currency that are measured
on future periods is recognised as income or expense in at fair value are translated using the exchange rates at the
those future periods. date when the fair value was determined.
The amendments are effective for annual reporting Foreign exchange gains and losses resulting from the
periods being on or after 1st January 2023. settlement of foreign currency transactions and from the
translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies
are recognized in the Income statement, except when
deferred in equity as gains or losses from qualifying cash

Annual Report 2021

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