SENWES ANNUAL FINANCIAL STATEMENTS 2022
• IAS 1 and IFRS Practice Statement 2 ( Amendments ) Disclosure of Accounting Policies Requirement to disclose significant accounting policies to disclosure of material accounting policy information . The amendments provide detailed guidance as to when accounting policy information would be material . The amendments also make it clear that accounting policy information must be entity-specific . Effective from 1 January 2023 with early adoption available ;
• IAS 8 ( Amendments ) Definition of accounting estimates Requirement to disclose significant accounting policies and to disclosure material accounting policy information . The amendments provide detailed guidance as to when accounting policy information would be material . The amendments also make it clear that accounting policy information must be entity-specific . Effective from 1 January 2023 with early adoption available ;
• IFRS 17 Insurance Contracts Revised standard that prescribes the recognition , measurement , presentation and disclosure of insurance contracts to replace IFRS 4 , which was always intended to be an interim standard . IFRS 4 allowed national practice to be followed to account for insurance contracts , while IFRS 17 prescribes a common global standard . Effective from 1 January 2023 with early adoption available ;
• Amendments to IFRS 17 Scope of IFRS 17 narrowed to exclude certain credit card contracts . Additional clarification on separation / aggregation of components of insurance contracts , accounting for contractual service margins , accounting for re-insurance contracts , onerous insurance contracts and presentation / disclosure in respect of insurance contracts . Introduction of accounting for insurance acquisition cash flows ;
• Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts ( Amendments to IFRS 4 ) & Extension of the Temporary Exemption from Applying IFRS 9 Temporary exemption to certain insurers not to apply IFRS 9 but rather IAS 39 ;
• Amendment of IAS 12 : Deferred Tax related to Assets and Liabilities arising from a Single Transaction The initial recognition exemption is expanded to only apply when the transaction that gives rise to temporary differences at initial recognition does not give rise to equal taxable and deductible temporary differences ;
• IAS 12 : Changes to the Income tax rate applicable to companies A corporate tax rate change was announced during February 2021 . This change from 28 % to 27 % applies to all companies with year ends commencing after 1 April 2022 .
The following considers the impact of these announcements on financial reporting in terms of IAS 12 - Income Taxes : * IAS 12.46 requires current tax liabilities and assets for the current an prior periods to be measured at an amount expected to be paid to or recovered from the taxation authorities , using the tax rates ( and laws that have been enacted or substantively enacted by the end of the reporting period ). * IAS 12.47 states that deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled , based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period .
Accordingly , the current tax rate remained at 28 % for the 2022 financial year , and the deferred tax assets and liabilities were remeasured at 27 %.
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 to IFRS 16 - Covid-19- Related Rent Concessions .
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