Ons is vandag hier as gevolg van
DIE LIEFDE WAT VOOR
ONS GEKOM HET
1993
HANLU & YOLANDÉ
Ontmoet in Saldanhabaai. Yolandé het as
FINANCIAL
ontvangs by Hoedjiesbaai Hotel gewerk en
Hanlu was ‘n polisieman. Gereelde besoeke
aan die hotel en polisiestasie (nie
werksverwant) was die begin van ’n besondere
ACCOUNTING
en lewenslange liefdesverhaal.
CHRIS & ERICA
1993
Beide het regte aan Kovsies geswot. Chris
was ‘n beter student as Erica (wat sy ontken),
771
maar het tog sy notas in haar posbus voor
belangrike toetse gelos. Albei het hokkie vir
die Universiteit gespeel en die res is
geskiedenis.
HENCO SE OUERS
IAS NOTES INGE SE OUERS
1965
ISAK & ELIZE
Ontmoet aan die Weskus in die Dwarskerbos
omgewing waar beide families woonagtig was.
Hanlu het in oupa se voetspore gevolg en ook
‘n polisieman geword terwyl ouma ‘n
tuisteskepper was. Jong verliefdes wat ‘n lang
pad saam geloop het. 1957
HANNES & ANNETTE
Beide het BA met Latyn en Engels aan die
UVS studeer en het mekaar in die klas
ontmoet. Oupa Hannes het vir ouma Annette
met haar Latyn huiswerk gehelp, klaarblyklik
omdat dit vir haar te moeilik was (al was sy
slim en nogal mooi ook)
HANLU SE OUERS CHRIS SE OUERS
1967
COENRAAD & ELIZABETH
Ontmoet by ‘n boere opskop en raak
halsoorkop verlief. Die liefde is nie altyd so
geduldig nie en hulle trou pas nadat hulle
skool voltooi. Ouma was ‘n boekhoudster en
oupa ‘n grafsteenmaker. Vrolik en lief vir
dans.
1957
GIEL & MARA
Ontmoet in Bloemfontein. Oupa Giel was ‘n
gesondheids inspekteur en ouma Mara ‘n
debiteure klerk. Hulle vestig in Windhoek en
was Suidwesters in murg en been. Lief vir
bier en biltong, soos hulle kinders.
YOLANDÉ SE OUERS ERICA SE OUERS
,
, IAS 1 NOTES
IAS 1: PRESENTATION & DISCLOSURE
Current liabilities (paragraph 69)
(a) it expects to settle the liability in its normal operating cycle (refer par.70 for normal operating cycle and paras. 76A&B for methods of settlement) (e.g. trade liabilities);
(b) it holds the liability primarily for the purpose of trading (refer par.71 for examples) (e.g. FEC liability);
(c) the liability is due to be settled within twelve months after the reporting period (refer par.71 for examples, par 72 for refinancing and par 76A&B for methods of
settlement); or
(d) it does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period (refer par 72A&B).
None of the above? = NON-CURRENT
EXTRA NOTES FROM CLASS:
Paragraph c): settled within 12 months = current
If breaches agreement with the effect that liability becomes payable on demand = current
Even if lender agrees AFTER reporting date but before authorization not to demand payment = still current
If lender agrees BEFORE reporting date not to demand payment = non-current
If a liability is current then it will stay current even if:
• Original term was >12 months
• And agreement to refinance the liability / reschedule payments on a long term basis is completed AFTER reporting date before authorization.
Refinance: pay payment but immediately borrow again
Reschedule payments: agree to other payback items over a longer period
**LINK TO IAS !0**
Therefore if refinance / reschedule payment for long term before reporting date = non-current
Paragraph d) no right to defer settlement = current
If you have the right to defer and pay > 12 months after RD = non-current
BUT if linked to specific conditions that must be met in order to defer then those conditions must be met AT reporting date (even if the lender only tested for
compliance after reporting date)
If the conditions were NOT met at reporting date = will remain current (can’t defer)
If the conditions were met at reporting date = will change to non-current
NB!!! HOW CAN SETTLEMENT TAKE PLACE
• Par. 76A: Settlement = transfer to counter party that results in extinguishment of the liability
• This can include cash or other economic resources (e.g. goods/services); or
• An entity’s own equity instruments (unless par. 76B applies)
• Par. 76B: If the counter party has the option to choose that the settlement of the liability will occur by the transfer of the entity’s own equity instruments and
the entity (in terms of IAS 32) classifies the option as an equity instrument, and recognises it separately from the liability as an equity component of a compound
financial instrument,
• then the settlement in an entity’s own equity instruments is not taken into account as a method of settlement (i.e. it does not influence the
assessment of current vs non-current).
• Note: See IAS 1.76 for disclosure if settlement takes place after reporting period end, but before AFS authorisation date.
Settlement
A B
Dt Inventory Counterparty has the option to chose equity of A as settlement
Cr Creditor
Creditor can be IAS 32 if equity or compound instrument (liability/equity)
, GENERAL PRESENTATION NOTES
A fair presentation in terms of IAS 1 Presentation of Financial Statements is achieved if all appropriate IFRSs are complied with. (IAS1.17)
IAS 1.51 requires that the presentation currency is prominently shown. à The statements must prominently state that it is Rand.
If an amount is material – IAS 1 should be considered in respect of disclosing this matter as a separate item
STATEMENT OF FINANCIAL POSITION
Critical discussion of and recommendations for improvement of the presentation and disclosure of the financial statements
INVENTORY
Statement of Financial Position of Mozz Limited as at 31 December 2016
Note 2016 2015
Current assets
Inventories 16 3 506 099 2 378 025
Inventories
Included in the 2016 inventories are lorries of which the manufacturing commenced in December 2016 and which are still incomplete at 31 December 2016. The
carrying amount of R1 700 000 is included in work-in-process. It normally takes 24 months before these lorries are again converted into cash (from commencement of
manufacturing until the money from the sale thereof is received).
IAS 1.61 requires that, if items include amounts which must be recovered in 12 months and after 12 months, the amounts must be disclosed separately.
The inventory account does not currently make this distinction and must disclose that inventory amounting to R1 700 000 will only realise after 12 months.
CASH & CASH EQUIVALENTS
Statement of Financial Position of Mozz Limited as at 31 December 2016
Note 2016 2015
Non-current assets
Office building – Revalued carrying amount 12 9 000 000 8 000 000
Current assets
Cash and cash equivalents 21 3 589 000 5 123 555
Cash and cash equivalents
Due to environmental damage that occurred as a result of the manufacturing activities of Mozz Limited, Mozz Limited is required by law to reserve
R1 000 000 of cash and cash equivalents in order to repair the environment within five years. Reparations is expected to commence during 2019. The
necessary provision (the liability and expense) has already been correctly accounted for and presented in the financial statements.
In terms of IAS 1.66, if cash and cash equivalents is restricted from being used within 12 months after the reporting period end, it should be presented as a
non-current asset.
Cash and cash equivalents of R1 000 000 is reserved in terms of law and must be presented as a non-current asset in Mozz’s statement of financial position.
DEFERRED TAX ASSET
Statement of Financial Position of Mozz Limited as at 31 December 2016
Note 2016 2015
Current assets
Deferred tax asset 18 1 526 800 800 000
IAS 1.56 prohibits the presentation of deferred tax liabilities/assets as current assets/liabilities.
The financial statements must present the deferred tax asset of R1 526 800 (and its comparative amount) under non-current assets.
DIE LIEFDE WAT VOOR
ONS GEKOM HET
1993
HANLU & YOLANDÉ
Ontmoet in Saldanhabaai. Yolandé het as
FINANCIAL
ontvangs by Hoedjiesbaai Hotel gewerk en
Hanlu was ‘n polisieman. Gereelde besoeke
aan die hotel en polisiestasie (nie
werksverwant) was die begin van ’n besondere
ACCOUNTING
en lewenslange liefdesverhaal.
CHRIS & ERICA
1993
Beide het regte aan Kovsies geswot. Chris
was ‘n beter student as Erica (wat sy ontken),
771
maar het tog sy notas in haar posbus voor
belangrike toetse gelos. Albei het hokkie vir
die Universiteit gespeel en die res is
geskiedenis.
HENCO SE OUERS
IAS NOTES INGE SE OUERS
1965
ISAK & ELIZE
Ontmoet aan die Weskus in die Dwarskerbos
omgewing waar beide families woonagtig was.
Hanlu het in oupa se voetspore gevolg en ook
‘n polisieman geword terwyl ouma ‘n
tuisteskepper was. Jong verliefdes wat ‘n lang
pad saam geloop het. 1957
HANNES & ANNETTE
Beide het BA met Latyn en Engels aan die
UVS studeer en het mekaar in die klas
ontmoet. Oupa Hannes het vir ouma Annette
met haar Latyn huiswerk gehelp, klaarblyklik
omdat dit vir haar te moeilik was (al was sy
slim en nogal mooi ook)
HANLU SE OUERS CHRIS SE OUERS
1967
COENRAAD & ELIZABETH
Ontmoet by ‘n boere opskop en raak
halsoorkop verlief. Die liefde is nie altyd so
geduldig nie en hulle trou pas nadat hulle
skool voltooi. Ouma was ‘n boekhoudster en
oupa ‘n grafsteenmaker. Vrolik en lief vir
dans.
1957
GIEL & MARA
Ontmoet in Bloemfontein. Oupa Giel was ‘n
gesondheids inspekteur en ouma Mara ‘n
debiteure klerk. Hulle vestig in Windhoek en
was Suidwesters in murg en been. Lief vir
bier en biltong, soos hulle kinders.
YOLANDÉ SE OUERS ERICA SE OUERS
,
, IAS 1 NOTES
IAS 1: PRESENTATION & DISCLOSURE
Current liabilities (paragraph 69)
(a) it expects to settle the liability in its normal operating cycle (refer par.70 for normal operating cycle and paras. 76A&B for methods of settlement) (e.g. trade liabilities);
(b) it holds the liability primarily for the purpose of trading (refer par.71 for examples) (e.g. FEC liability);
(c) the liability is due to be settled within twelve months after the reporting period (refer par.71 for examples, par 72 for refinancing and par 76A&B for methods of
settlement); or
(d) it does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period (refer par 72A&B).
None of the above? = NON-CURRENT
EXTRA NOTES FROM CLASS:
Paragraph c): settled within 12 months = current
If breaches agreement with the effect that liability becomes payable on demand = current
Even if lender agrees AFTER reporting date but before authorization not to demand payment = still current
If lender agrees BEFORE reporting date not to demand payment = non-current
If a liability is current then it will stay current even if:
• Original term was >12 months
• And agreement to refinance the liability / reschedule payments on a long term basis is completed AFTER reporting date before authorization.
Refinance: pay payment but immediately borrow again
Reschedule payments: agree to other payback items over a longer period
**LINK TO IAS !0**
Therefore if refinance / reschedule payment for long term before reporting date = non-current
Paragraph d) no right to defer settlement = current
If you have the right to defer and pay > 12 months after RD = non-current
BUT if linked to specific conditions that must be met in order to defer then those conditions must be met AT reporting date (even if the lender only tested for
compliance after reporting date)
If the conditions were NOT met at reporting date = will remain current (can’t defer)
If the conditions were met at reporting date = will change to non-current
NB!!! HOW CAN SETTLEMENT TAKE PLACE
• Par. 76A: Settlement = transfer to counter party that results in extinguishment of the liability
• This can include cash or other economic resources (e.g. goods/services); or
• An entity’s own equity instruments (unless par. 76B applies)
• Par. 76B: If the counter party has the option to choose that the settlement of the liability will occur by the transfer of the entity’s own equity instruments and
the entity (in terms of IAS 32) classifies the option as an equity instrument, and recognises it separately from the liability as an equity component of a compound
financial instrument,
• then the settlement in an entity’s own equity instruments is not taken into account as a method of settlement (i.e. it does not influence the
assessment of current vs non-current).
• Note: See IAS 1.76 for disclosure if settlement takes place after reporting period end, but before AFS authorisation date.
Settlement
A B
Dt Inventory Counterparty has the option to chose equity of A as settlement
Cr Creditor
Creditor can be IAS 32 if equity or compound instrument (liability/equity)
, GENERAL PRESENTATION NOTES
A fair presentation in terms of IAS 1 Presentation of Financial Statements is achieved if all appropriate IFRSs are complied with. (IAS1.17)
IAS 1.51 requires that the presentation currency is prominently shown. à The statements must prominently state that it is Rand.
If an amount is material – IAS 1 should be considered in respect of disclosing this matter as a separate item
STATEMENT OF FINANCIAL POSITION
Critical discussion of and recommendations for improvement of the presentation and disclosure of the financial statements
INVENTORY
Statement of Financial Position of Mozz Limited as at 31 December 2016
Note 2016 2015
Current assets
Inventories 16 3 506 099 2 378 025
Inventories
Included in the 2016 inventories are lorries of which the manufacturing commenced in December 2016 and which are still incomplete at 31 December 2016. The
carrying amount of R1 700 000 is included in work-in-process. It normally takes 24 months before these lorries are again converted into cash (from commencement of
manufacturing until the money from the sale thereof is received).
IAS 1.61 requires that, if items include amounts which must be recovered in 12 months and after 12 months, the amounts must be disclosed separately.
The inventory account does not currently make this distinction and must disclose that inventory amounting to R1 700 000 will only realise after 12 months.
CASH & CASH EQUIVALENTS
Statement of Financial Position of Mozz Limited as at 31 December 2016
Note 2016 2015
Non-current assets
Office building – Revalued carrying amount 12 9 000 000 8 000 000
Current assets
Cash and cash equivalents 21 3 589 000 5 123 555
Cash and cash equivalents
Due to environmental damage that occurred as a result of the manufacturing activities of Mozz Limited, Mozz Limited is required by law to reserve
R1 000 000 of cash and cash equivalents in order to repair the environment within five years. Reparations is expected to commence during 2019. The
necessary provision (the liability and expense) has already been correctly accounted for and presented in the financial statements.
In terms of IAS 1.66, if cash and cash equivalents is restricted from being used within 12 months after the reporting period end, it should be presented as a
non-current asset.
Cash and cash equivalents of R1 000 000 is reserved in terms of law and must be presented as a non-current asset in Mozz’s statement of financial position.
DEFERRED TAX ASSET
Statement of Financial Position of Mozz Limited as at 31 December 2016
Note 2016 2015
Current assets
Deferred tax asset 18 1 526 800 800 000
IAS 1.56 prohibits the presentation of deferred tax liabilities/assets as current assets/liabilities.
The financial statements must present the deferred tax asset of R1 526 800 (and its comparative amount) under non-current assets.
