Exxaro has applied changes to IFRS Accounting Standards that are mandatorily effective for reporting periods beginning on or after 1 January 2023. Additionally, Exxaro has early adopted the amendments to IAS 1 Presentation of Financial Statements: Non-current Liabilities with Covenants and Classification of Liabilities as Current or Non-current (both mandatorily effective from 1 January 2024). The changes and their impact on Exxaro are summarised below. Overall, the adoption of these amendments did not impact the recognition nor measurement of the amounts reported in these financial statements.
| Standard | Key requirements | |
| IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements - Disclosure of accounting policies | The amendments provide guidance and examples to help entities apply materiality judgements to
accounting policy disclosures. The amendments had an impact on the disclosures of accounting policies; the impacted policies
have been updated. |
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| IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of accounting estimate | The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the financial statements. |
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| IAS 12 Income Taxes - Deferred tax related to assets and liabilities arising from a single transaction | The amendments narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities. The amendments had no impact on the financial statements. |
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| IFRS 17 Insurance contracts | IFRS 17 is a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. IFRS 17 replaces IFRS 4 Insurance Contracts. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them as well as to certain guarantees and financial instruments with discretionary participation features; a few scope exceptions will apply. The overall objective of IFRS 17 is to provide a comprehensive accounting model for insurance contracts that is more useful and consistent for insurers, covering all relevant accounting aspects. IFRS 17 is based on a general model, supplemented by:
The new standard had no impact on the group's financial statements. |
Classification of liabilities as current or non-current as well as non-current liabilities with covenants
The amendments to IAS 1 published in January 2020 affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition. A key requirement of the 2020 amendments was that entities with liabilities that are subject to covenants to be complied with at a date subsequent to the reporting period do not have the right to defer settlement of the liabilities at the end of the reporting period if they do not comply with the covenants at that date.
Under the 2022 amendments, only covenants of a liability arising from a loan arrangement, which an entity must comply with on or before the reporting date affect the classification of that liability as current or non-current. The amendments are linked to the requirements on disclosure about such liabilities. The IASB concluded that the amended classification requirements will provide useful information when considered together with the requirements to disclose information when considered together with the requirements to disclose information about non-current liabilities with future covenants in the notes.
The amendments are applied retrospectively with early application permitted.
On adopting the amendment to IAS 1 on 1 January 2023, Exxaro early adopted the subsequent amendments to IAS 1, effective 1 January 2024, regarding the classification of current and non-current liabilities. The adoption had no impact.
New accounting standards, amendments to accounting standards and interpretations issued, that are not yet effective on 31 December 2023,
have not been early adopted.
It is expected that where applicable, these standards and amendments will be adopted on each respective
effective date, except as noted under 18.2.2. The group continuously evaluates the impact of these standards and amendments. The effect of
the implementation of the new, amended or revised standards are not expected to have a material impact, although assessments of the effect
of the implementation of these new, amended or revised standards are ongoing.
| Standard | Key requirements | Mandatory application date | ||
| IFRS 16 Leases – Lease liability in a sale and leaseback transaction | The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right-of-use it retains. | 1 January 2024 | ||
| IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements | The amendments clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. | 1 January 2024 | ||
| IAS 21 The Effect of Changes in Foreign Exchange Rates – Lack of exchangeability | The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking, as well as require the disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable. | 1 January 2025 |
IR