* Used a single discount rate to a portfolio of leases with reasonably similar characteristics;
* Relied on its assessment of whether leases are onerous immediately before the date of initial application;
* Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date; of initial
application;
* Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application, and
* Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease.
The lease liabilities as at 1 May 2019 can be reconciled to the operating lease commitments as of 30 April 2019, as follows:
GROUP
R'm
Operating lease commitments as at 30 April 2019 -
Weighted average incremental borrowing rate as at 1 May 2019 5,72%
Discounted operating lease commitments as at 1 May 2019 -
Less: -
Commitments relating to short-term leases -*
Commitments relating to leases of low-value assets -*
Add: -
Commitments relating to leases previously classified as finance leases -
Lease payments relating to renewal periods not included in operating lease
commitments as at 30 April 2019
2
Lease liabilities as at 1 May 2019 -
* Amount is less than R0,5 million.
IFRIC Interpretation 23 Uncertainty over Income Tax Treatment
The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the
application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include
requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically
addresses the following:
* Whether an entity considers uncertain tax treatments separately;
* The assumptions an entity makes about the examination of tax treatments by taxation authorities;
* How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credit and tax rates; and
* How an entity considers changes in facts and circumstances.
The group determines whether to consider each uncertain tax treatment separately or together with one or more other
uncertain tax treatments and uses the approach that better predicts the resolution of the uncertainty.
Upon adoption of the Interpretation, the group considered whether it has any uncertain tax positions. The group determined,
based on its tax compliance, that it is probable that its tax treatments (including those for the subsidiaries) will be accepted
by the taxation authorities. The Interpretation did not have an impact on the consolidated financial statements of the group.
1.3 NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS
Standards already issued, but not yet effective upon the issuing of the group’s financial statements, are listed below. This
list contains standards and interpretations issued, which are expected to be applicable at a future date. The intention of the
group is to adopt these standards, if applicable, when they become effective:
l IFRS 3 (Amendment)
Definition of business amended to specify that a business consists of an integrated set of activities and assets that have
the ability to contribute to the creation of outputs. The outputs are specified in the definition and guidance is provided to
determine whether the process requirement is met. An optional concentration test to determine whether a set of activities
and assets acquired constitute a business is introduced. Effective date 1 January 2020;
l IAS 1 and IAS 8 (Amendments)
Revised definition of material and guidance introduced to determine whether information about an item, transaction or
event is material to users of financial statements. Effective date 1 January 2020;
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 84