AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
IAS 12 : Changes to the Income tax rate applicable to companies On Wednesday , 24 February 2021 , Finance Minister Tito Mboweni announced several changes to income tax for corporates . These included a corporate tax rate change from 28 % to 27 % for companies with years of assessment commencing on or after 1 April 2022 , as well as the implementation of limits on interest deductions and the use of assessed losses . The measurement of current tax liabilities and assets , and deferred tax assets and liabilities is dependant on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period as described in accounting policy note 2.9 The Financial Reporting Standards Council ( FRSC ) issued a pronouncement that provides guidance on how the requirements of IAS 12 would apply to the South African environment .
The pronouncement states that “ Changes in tax rates should be regarded as substantively enacted from the time that they are announced in terms of the Minister of Finance ’ s Budget Statement ”. However , this only applies where the change in tax rates is not inextricably linked to other changes in the tax laws . Typically the change is announced , supported in draft legislation and is promulgated in a relatively short period of time . In this instance it was not supported in the draft legislation and is described as being dependent on the successful implementation of legislation to maintain a constant tax base , including changes to the ability to use assessed losses .
As a result of this conditionality , there is a risk that the change will be delayed or otherwise amended , and therefore sufficient doubt as to whether the change was promulgated in a substantially unchanged manner . Accordingly current tax and deferred tax assets and liabilities were measured at 28 %.
The following standards are new or were also amended during the year , but are not likely to have a material impact on the group :
Amendments to IFRS 9 , IAS 39 , IFRS 7 , IFRS 4 and IFRS 16 , Interest Rate Benchmark Reform Phase 2 . Amendments IAS 41 - Biological Assets ( Annual improvements 2018 - 2020 ). Amendments IAS 16 - Property , Plant and Equipment : Proceeds before intended use . Amendments to IFRS 1 First-time adoption of international financial reporting standards ( Annual improvements 2018 - 2020 ).
2.1 Basis of consolidation The consolidated financial statements comprise of the financial statements of Agribel Holdings Ltd , its subsidiaries , joint ventures and associates as at 30 April 2021 .
Control is achieved when the group is exposed , or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee . Specifically , the group controls an investee if and only if the group has :
Power over the investee ( i . e . existing rights that give it the current ability to direct the relevant activities of the investee ); Exposure , or rights , to variable returns from its involvement with the investee ; and The ability to use its power over the investee to affect its returns .
When the group has less than a majority of the voting or similar rights of an investee , the group considers all relevant facts and circumstances in assessing whether it has power over an investee , including :
The contractual arrangement with the other vote holders of the investee ; Rights arising from other contractual arrangements ; and The group ’ s voting rights and potential voting rights .
The group reassesses whether or not it controls an investee if the facts and circumstances indicate that there are changes to one or more of the three elements of control . Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases when the group loses control of the subsidiary . Assets , liabilities , income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from the date the group gains control until the date the group ceases to control the subsidiary .
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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