Page 83 - KZN Film A Report

Notes to the Financial Statements (continued)
2. New standards and interpretations (continued)
Directive 7 (revised): The Application of Deemed Cost
This Directive was originally issued by the Accounting Standards Board (the Board) in December 2009. Since then, it has been amended by:
• Consequential amendments when the following Standards of GRAP were amended to clarify some of the principles:
- GRAP 105 Transfer of Functions Between Entities Under Common Control
- GRAP 107 Mergers
• Consequential amendments arising from GRAP 110 Living and Non-living Resources issued in December 2017.
• Consequential amendments arising from the following Standards of GRAP in May 2018:
- GRAP 34 Separate Financial Statements
- GRAP 35 Consolidated Financial Statements
- GRAP 36 Investments in Associates and Joint Ventures - GRAP 37 Joint Arrangements
- GRAP 38 Disclosure of Interests in Other Entities
The effective date of this Directive coincides with the effective dates of the applicable Standards of GRAP, as determined by the Minister of Finance. If an entity has assets that it previously could not recognise and/or measure in accordance with the Standards of GRAP on their initial adoption on the transfer date or the merger date because information about the acquisition cost of the assets was not available, an entity applies this Directive to those assets. The fair value of those assets is determined at the date of adopting the Standards of GRAP on the transfer date or the merger date in accordance with the Directive’s Appendix paragraph A3.
The effective date of this revised directive is for years beginning on or after 1 April 2020.
The entity has adopted the directive for the first time in the 2020/2021 annual financial statements. The impact of the standard is not material.
2.2 Standards and interpretations issued, but not yet effective
The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entity’s accounting periods beginning on or after 1 April 2021 or later periods:
GRAP 104 (amended): Financial Instruments
Following the global financial crisis, a number of concerns were raised about the accounting for financial instruments. This included that (a) information on credit losses and defaults on financial assets was received too late to enable proper decision- making, (b) using fair value in certain instances was inappropriate, and (c) some of the existing accounting requirements were seen as too rules based. As a result, the International Accounting Standards Board® amended its existing Standards to deal with these issues. The IASB issued IFRS® Standard on Financial Instruments (IFRS 9) in 2009 to address many of the concerns raised. Revisions were also made to IAS® on Financial Instruments: Presentation and the IFRS Standard® on Financial Instruments: Disclosures. The IPSASB issued revised International Public Sector Accounting Standards in June 2018 so as to align them with the equivalent IFRS Standards.
The revisions better align the Standards of GRAP with recent international developments. The amendments result in better information available to make decisions about financial assets and their recoverability, and more transparent information on financial liabilities.
The most significant changes to the Standard affect:
• Financial guarantee contracts issued
• Loan commitments issued
• Classification of financial assets
• Amortised cost of financial assets
• Impairment of financial assets
• Disclosures
KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2021
KZN FILM COMMISSION ANNUAL REPORT 2020/2021
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