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(c) Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRSs requires man-
agement to make judgments, estimates and assumptions that affect the application of policies and
reported amounts of assets and liabilities, income and expenses. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimate is revised, if the revision affects only that
year, or in the year of the revision and future years, if the revision affects both current and future years.

Information about significant areas of estimation uncertainties and critical judgments in applying ac-
counting policies that have the most significant effect on the amounts recognised in the consolidated
and separate financial statements are described in note 4.

3.2 Changes in accounting policy and disclosures

(a) New and amended standards adopted by the group
Below are the IFRSs and International Financial Reporting Interpretations Committee (IFRIC) interpre-
tations that are effective for the first time for the financial year beginning on or after 1 January 2017
that are relevant to the group.

None of these standards were early adopted in the prior year by the Group as early adoption is not
permitted by the Financial Reporting Council of Nigeria (FRCN).

(i) Amendments to IFRS 7 - Financial Instruments: Disclosures
“Amends IFRS 7 to remove the phrase ‘and interim years within the annual years’ from paragraph 44R,
clarifying that offsetting disclosures is not required in the condensed interim financial report. However,
if the IFRS 7 disclosures provide a significant update to the information reported in the most recent
annual report, an entity is required to include the disclosures in the condensed interim financial report.

On servicing contract, it clarifies that a servicing contract that includes a fee can constitute continuing
involvement in a financial asset. An entity must assess the nature of the fee and arrangement against
the guidance for continuing involvement in paragraphs IFRS 7.B30 and IFRS 7.42C in order to assess
whether the disclosures are required. This standard does not have any impact on this financial state-
ment.”
(ii) amendments to IaS 19 - Defined Benefit Plans: employee Contributions

Amends IAS 19 to clarify that high quality corporate bonds used in estimating the discount rate for
post-employment benefits should be denominated in the same currency as the benefits to be paid
(thus, the depth of the market for high quality corporate bonds should be assessed at currency lev-
el).

There is no material impact on the accounting policies, financial position or performance of the
Group.
(iii) amendments to IaS 12 – Income taxes. (with effective date of 1 January 2017)

Amends IFRS 12 to clarify accounting treatment for deferred tax assets for unrealized losses on debt
instruments measured at fair value. The amendments clarify that an entity needs to consider whether
tax law restricts the sources of taxable profits against which it may make deductions on the reversal
of that deductible temporary difference. Furthermore, the amendments provide guidance on how an
entity should determine future taxable profits and explains in which circumstances taxable profit may
include the recovery of some assets for more than their carrying amount.

(iv) amendments IaS 7 – Statement of Cash Flows. (with effective date of 1 January 2017)
Amends IAS 7 to include disclosures that enable users of financial statements to evaluate changes in
liabilities arising from financing activities. The amendment specifies that the following changes arising

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