AMENDMENTS TO GRAP – Impact Analysis for the Current Financial Year
Nexia SAB&T on 23/05/2022

AMENDMENTS TO GRAP – Impact Analysis for the Current Financial Year

The Accounting Standards Board of South Africa (ASB) issued various amendments to GRAP Standards of which the Minister of Finance approved some to be effective in Government Gazette No.44881 on 13 August 2021. Entities applying GRAP are required1 to disclose the impact of these in their financial statements.

IFRS9: ECL on intercompany loans with low credit risk
Nexia SAB&T on 01/11/2021

IFRS9: ECL on intercompany loans with low credit risk

Entities in a group often provide financing to each other. This financing could be at market-terms or at non-market terms. In this month’s tip we will discuss those loans with a low credit risk at the reporting date. A loan is determined to have low credit risk if:

Retention of Records
Nexia SAB&T on 01/10/2021

Retention of Records

An entity’s document retention and destruction policy is entity-specific based on the laws and regulations applicable to that entity. Based on the different types of documents that an entity has and the different rules governing the retention of these documents, the process can be very daunting. However it is crucial for any business to have these policies in place due to the implications of not having the documents available e.g. whether due to legal repercussions or due to conflicts with clients and/or suppliers and/or employees.

IAS 8 AMENDMENT New definition for Accounting Estimates
Nexia SAB&T on 01/09/2021

IAS 8 AMENDMENT New definition for Accounting Estimates

Amended IAS 8 removes the definition of a change in accounting estimates and replaced it with a new definition for Accounting Estimates. Entities often struggle to differentiate between changes in accounting policies and changes in accounting estimates. Diversity in practice has been noted in this regard. The amendment aims to reduce the diversity.

IFRS 9: ECL on intercompany loans repayable on demand
Nexia SAB&T on 01/07/2021

IFRS 9: ECL on intercompany loans repayable on demand

Entities in a group often provide financing to each other. This financing could be at market terms or at non-market terms. Those loans which are entered into at market terms do not result in significant accounting considerations. This month our focus is on how to calculate the expected credit loss (ECL) on intercompany loans which are repayable on demand.

Applying the 3-Stage Impairment Model to Intercompany Loans
Nexia SAB&T on 01/06/2021

Applying the 3-Stage Impairment Model to Intercompany Loans

As intercompany loans are eliminated on consolidation for subsidiaries, no financial assets or liabilities related to intercompany loans are recorded in the consolidated financial statements. This negates the requirement to consider impairment of these financial assets in respect of consolidated financial statements. However, the implications of impairment on intercompany loans should still be considered when separate financial statements are prepared.

IFRS 3 Business Combinations – New definition of Business
Nexia SAB&T on 01/04/2021

IFRS 3 Business Combinations – New definition of Business

Amendments were made to the definition of a ‘business’, with the aim of helping entities to determine whether a transaction should be accounted for as an asset acquisition or a business combination in terms of IFRS 3.

Budget Highlights for 2021/22
Nexia SAB&T on 04/03/2021

Budget Highlights for 2021/22

The Minister of Finance delivered his budget speech on 24 February 2021. Due to Covid pandemic, tax relief were provided mainly for individual tax to assist in the recovery of the economy.