Chapter 18Compliance

18.2Adoption of new, amended and revised standards and interpretations

18.2.1 New, amended and revised standards adopted during 2024

Exxaro has applied changes to IFRS Accounting Standards that are mandatorily effective for reporting periods beginning on or after 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

IFRS 16 Leases – Measurement of 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.

The amendment had no impact on the financial statements.

IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosure – Disclosure of qualitative and quantitative information about 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.

The amendments had no impact on the financial statements.

18.2.2 New, amended and revised standards not yet adopted

New accounting standards, amendments to accounting standards and interpretations issued, that are not yet effective on 31 December 2024, have not been early adopted. It is expected that where applicable, these standards and amendments will be adopted on each respective effective date. The group continuously evaluates the impact of these standards and amendments. The assessments of the effect of the implementation of these new, amended or revised standards are ongoing.

Standard	Key requirements	Mandatory application date
IAS 21 The Effects 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. The effect of the implementation of these amendments will have no impact as Exxaro is not exposed to lack of exchangeability in foreign currency.	1 January 2025
IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments	These amendments: Clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system Clarify and add further guidance for assessing whether a financial asset meets the SPPI criterion Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of ESG targets); and Make updates to the disclosures for equity instruments designated at FVOCI. The effect of the implementation of these amendments are not expected to have a material impact.	1 January 2026
IFRS 7 Financial Instruments: Disclosures – gain or loss on derecognition	This is a narrow scope amendment to delete an obsolete reference that remained in IFRS 7 following the publication of IFRS 13 Fair Value Measurement and to make the wording of the requirements of IFRS 7 relating to disclosure of a gain or loss on derecognition consistent with the wording and concepts in IFRS 13. The effect of the implementation of this amendment is not expected to have a material impact.	1 January 2026
IFRS 10 Consolidated Financial Statements – determination of a “de facto agent”	Narrow scope amendment to clarify whether a party acts as a de facto agent in assessing control of an investee. The effect of the implementation of this amendment is not expected to have a material impact.	1 January 2026
IAS 7 Statement of Cash Flows – cost method	Narrow scope amendment to replace the term “cost method” with ”at cost” following the removal of the definition of “cost method” from the IFRS Accounting Standards. The effect of the implementation of this amendment is not expected to have a material impact.	1 January 2026
IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18)	IFRS 18 replaces IAS 1 Presentation of Financial Statements, which sets out presentation and base disclosure requirements for financial statements. IFRS 18 introduces three sets of new requirements to improve companies' reporting of financial performance and give investors a better basis for analysing and comparing companies: Improved comparability in the statement of profit or loss (income statement) through the introduction of three defined categories for income and expenses, namely operating, investing and financing, to improve the structure of the income statement, and a requirement for all companies to provide new defined subtotals, including operating profit Enhanced transparency of management defined performance measures with a requirement for companies to disclose explanations of those company-specific measures that are related to the income statement More useful grouping of information in the financial statements through enhanced guidance on how to organise information and whether to provide it in the primary financial statements or in the notes, as well as a requirement for companies to provide more transparency about operating expenses. The group is currently working to identify the impact this new IFRS Accounting Standard will have on the primary financial statements and notes to the financial statements.	1 January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures (IFRS 19)	IFRS 19 is a voluntary standard that applies to entities without public accountability, but whose parents prepare consolidated financial statements under the IFRS Accounting Standards. IFRS 19 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. A subsidiary is eligible if: It does not have public accountability; and It has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. IFRS 19 is not applicable to the Exxaro group or company as the instruments are publicly traded, but will be considered for the subsidiary entities within the Exxaro group.	1 January 2027