(694)
(553)
Ordinary dividends paid by subsidiaries
(4)
(3)
Preference dividends paid
(46)
(47)
Distributions to beneficiaries of the HPFL trusts
(43)
(47)
Net cash from operating activities
1 690
2 329
Continuing operations
1 646
2 285
Discontinued
operations
44
44
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS [extract]
12.1 Discontinued operations [extract]
Rm
Care Transform
Total
2012
Cash flows from operating activities
17 27 44
Cash flows from investing activities
(3) (7) (10)
2011
Cash flows from operating activities
39
5
44
Cash flows from investing activities
(3)
(8)
(11)
Cash flows from financing activities
(14)
3
(11)
8.2
Cash flows arising from insurance contracts
IFRS 4 requires that where an insurance entity presents its operating cash flows using
the direct method, it should separately disclose cash flows arising from insurance
contracts. [IFRS 4.37(b)]. Comparative information is required. [IFRS 4.42]. When an entity
adopts IFRS 17 the specific disclosure requirements under IFRS 4 will no longer apply
(see 7.1 above).
Statement of cash flows 3041
8.3
Cash flows arising from the exploration of mineral resources
In a similar vein, IFRS 6 – Exploration for and Evaluation of Mineral Resources –
requires that an entity discloses the amounts of operating and investing cash flows
arising from the exploration for and evaluation of mineral resources. [IFRS 6.24(b)]. The
requirements of IFRS 6 are discussed in Chapter 39. The requirement for investing cash
flows to give rise to the recognition of an asset, discussed at 4.2 above, is particularly
relevant to entities applying IFRS 6.
8.4
Cash flows arising from interests in subsidiaries, joint ventures
and associates
IFRS 12 requires an entity to disclose in its consolidated financial statements
summarised financial information about the cash flows for each subsidiary that has non-
controlling interests that are material to the entity. [IFRS 12.B10(b)]. These amounts are
stated before inter-company eliminations. [IFRS 12.B11].
For each material joint venture and associate an entity is also required to disclose
dividends received from the joint venture or associate [IFRS 12.B12(a)] and, for joint
ventures, the amount of cash and cash equivalents. [IFRS 12.B13(a)]. In addition, the
standard requires disclosure of any significant restrictions on the ability of joint ventures
or associates to transfer funds to the entity in the form of cash dividends, or to repay
loans or advances made by the entity. [IFRS 12.22(a)].
IFRS 12 is discussed in more detail in Chapter 13.
References
1
IFRIC Update, July 2009.
9
IFRIC Update, August 2005.
2
IFRIC Update, June 2018.
10 IASB Update, November 2017.
3
IASB Update, December 2016.
11 IASB Update, December 2017.
4
IASB Update, April 2013.
12 IASB Update, December 2017.
5
IASB Update, April 2013.
13 FASB Accounting Standards Codification (ASC)
6
ED
2012/1,
Annual Improvements to
Topic Statement of Cash Flows, 230-10-45-13.
IFRSs 2010-2012 Cycle, IASB, May 2012.
14 IASB Update, April 2013.
7
IASB Update, April 2013.
15 IAS 7, Statement of Cash Flows, IASB,
8
IFRIC Update, August 2005.
Appendix A, part D. Segment Information.
3042 Chapter 36
3043
Chapter 37
Interim financial
reporting
1 INTRODUCTION .......................................................................................... 3049
1.1
Definitions ........................................................................................................... 3050
2 OBJECTIVE AND SCOPE OF IAS 34 ............................................................ 3050
2.1
Objective ............................................................................................................. 3050
2.2 Scope
..................................................................................................................... 3051
3 COMPONENTS, FORM AND CONTENT OF AN INTERIM FINANCIAL
REPORT UNDER IAS 34 .............................................................................. 3052
3.1
Complete set of interim financial statements .............................................. 3052
3.2
Condensed interim financial statements ....................................................... 3053
3.3
Requirements for both complete and condensed interim financial
information ......................................................................................................... 3057
3.4 Management
commentary
...............................................................................
3057
4 DISCLOSURES IN CONDENSED FINANCIAL STATEMENTS ....................... 3058
4.1
Significant events and transactions ................................................................ 3058
4.1.1
Relevance of other standards in condensed financial
statements ........................................................................................... 3059
4.2
Other disclosures required by IAS 34 ............................................................ 3060
4.2.1
Location of the specified disclosures in an interim
financial report ................................................................................... 3062
4.3
Illustrative examples of disclosures ............................................................... 3062
4.3.1
Inventory write-down and reversals ............................................. 3062
4.3.2 Impairment
.........................................................................................
3062
4.3.3
Reversal of restructuring provisions .............................................. 3063
4.3.4
Acquisition and disposal of property, plant and equipment ..... 3064
4.3.5 Capital
commitments ........................................................................ 3064
4.3.6 Litigation
settlements
........................................................................ 3065
3044 Chapter 37
4.3.7 Changes
in
circumstances
affecting fair values ........................... 3065
4.3.8
Default or breach of loan covenants not remedied before
the end of interim period ................................................................. 3066
4.3.9
Related party transactions ............................................................... 3066
4.3.10 Transfers between different levels of fair value hierarchy ....... 3068
4.3.11 Changes
in
classification
of financial assets arising from
changes in use..................................................................................... 3070
4.3.12 Contingent
liabilities ......................................................................... 3070
4.3.13 Accounting
policies
and
methods of computation ...................... 3071
4.3.14 Seasonality
or
cyclicality of operations ........................................ 3073
4.3.15
Amounts that are unusual because of their nature, size or
incidence ............................................................................................. 3073
4.3.16 Changes
in
estimates ......................................................................... 3074
4.3.17
Issues, repurchases and repayments of debt and equity
securities .............................................................................................. 3074
4.3.18
Dividends paid for each class of share .......................................... 3075
4.3.19
Events after the interim reporting date ......................................... 3075
4.3.20 Changes in the composition of the entity ..................................... 3075
4.4
Segment information ......................................................................................... 3078
4.5
Fair value disclosures for financial instruments .......................................... 3080
4.6
Disclosure of compliance with IFRS ............................................................. 3082
4.7
Disclosure in relation to change in going concern assumption ................ 3083
5 PERIODS FOR WHICH INTERIM FINANCIAL STATEMENTS ARE
REQUIRED TO BE PRESENTED .................................................................... 3084
5.1
Other comparative information ...................................................................... 3087
5.2
Length of interim reporting period ................................................................ 3088
5.3
Change in financial year-end .......................................................................... 3088
5.4
Comparatives following a financial period longer than a year ................. 3090
5.5
When the comparative period is shorter than the current period ........... 3091
6 MATERIALITY ............................................................................................. 3092
7 DISCLOSURE IN ANNUAL FINANCIAL STATEMENTS ................................ 3093
8 RECOGNITION AND MEASUREMENT ......................................................... 3093
8.1
Same accounting policies as in annual financial statements ..................... 3094
8.1.1
Measurement on a year-to-date basis ........................................... 3094
8.1.2
New accounting pronouncements and other changes in
accounting policies ............................................................................ 3095
8.1.2.A
New pronouncements becoming mandatory
during the current year ................................................ 3096
8.1.2.B
Voluntary changes of accounting policy .................. 3097
Interim financial reporting 3045
8.1.2.C Transition
disclosures in subsequent interim
financial statements in the year of adoption ........... 3097
8.1.2.D
New pronouncements becoming mandatory in
future annual reporting periods ................................. 3098
8.1.3
Voluntary changes in presentation................................................. 3099
8.2
Seasonal businesses ........................................................................................... 3099
8.2.1
Revenues received seasonally, cyclically, or occasionally ........ 3099
8.2.2
Costs incurred unevenly during the year ..................................... 3100
9 EXAMPLES OF THE RECOGNITION AND MEASUREMENT PRINCIPLES ... 3100
9.1
Property, plant and equipment and intangible assets .................................. 3101
9.1.1
Depreciation and amortisation ........................................................ 3101
9.1.2 Impairment
of assets .......................................................................... 3101
9.1.3
Recognition of intangible assets ...................................................... 3101
9.1.4 Capitalisation
of
borrowing costs .................................................... 3102
9.2
Reversal of impairment losses recognised in a previous interim
period (IFRIC 10) ................................................................................................ 3102
9.3 Employee
benefits
..............................................................................................
3103
9.3.1
Employer payroll taxes and insurance contributions ................. 3103
9.3.2 Year-end
bonuses
...............................................................................
3103
9.3.3 Pensions
................................................................................................
3104
9.3.4
Vacations, holidays, and other short-term paid absences .......... 3105
9.4
Inventories and cost of sales ............................................................................ 3105
9.4.1
Inventories ........................................................................................... 3105
9.4.2
Contractual or anticipated purchase price changes .................... 3106
9.4.3
Interim period manufacturing cost variances ............................... 3106
9.5
Taxation ................................................................................................................ 3106
9.5.1
Measuring interim income tax expense ......................................... 3106
9.5.2
Changes in the effective tax rate during the year ........................ 3108
9.5.2.A
Enacted changes for the current year that
apply after the interim reporting date ....................... 3108
9.5.2.B
Changes to previously reported estimated
income tax rates for the current year ........................ 3109
9.5.2.C
Enacted changes applying only to subsequent
years .........................................................................
......... 3110
9.5.3
Difference in financial year and tax year ........................................ 3111
9.5.4
Tax loss and tax credit carrybacks and carryforwards ............... 3112
9.5.5 Tax
credits
...........................................................................................
3114
9.6
Foreign currency translation ............................................................................. 3115
9.6.1
Foreign currency translation gains and losses ............................... 3115
9.6.2
Interim financial reporting in
hyperinflationary economies ............................................................ 3115
3046 Chapter 37
9.7
Provisions, contingencies and accruals for other costs ............................... 3117
9.7.1
Provisions .............................................................................................. 3117
9.7.2
Other planned but irregularly occurring costs ............................... 3117
9.7.3
Major planned periodic maintenance or overhaul ....................... 3117
9.7.4
Contingent lease payments ............................................................... 3118
9.7.5
Levies charged by public authorities .............................................. 3118
9.8
Earnings per share .............................................................................................. 3122
10 USE OF ESTIMATES ...................................................................................... 3122
11 EFFECTIVE DATES AND TRANSITIONAL RULES ......................................... 3123
11.1
First-time presentation of interim reports complying with IAS 34 .......... 3123
11.1.1
Condensed financial statements in the year of
incorporation or when an entity converts from its
local GAAP to IFRS ............................................................................ 3124
11.2 Consequential amendments to IFRS 7 when first adopting IFRS 9 ......... 3125
List of examples
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 603
