Chapter 18: Compliance

18.2 Adoption of new, amended and revised standards and interpretations

18.2.1 New, amended and revised standards adopted during 2025

Exxaro has applied changes to IFRS Accounting Standards that are mandatorily effective for reporting periods beginning on or after 1 January 2025. 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.

IFRS Accounting Standard	Key requirements
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.

IFRS Accounting Standard

Key requirements

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.

18.2.2 New, amended and revised standards not yet adopted

New IFRS Accounting Standards, amendments to IFRS Accounting Standards and interpretations issued, that are not yet effective on 31 December 2025, 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 IFRS Accounting Standards are ongoing.

IFRS Accounting Standard	Key requirements	Mandatory application date
IFRS 7 Financial Instruments: Disclosure and IFRS 9 Financial Instruments – 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) 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: Disclosure and IFRS 9 Financial Instruments – Contracts Referencing Nature-dependent Electricity	These amendments: Clarify how the own-use requirements should be applied allow hedge accounting when these contracts are used as hedging instruments introduce new disclosure requirements to give investors a clearer understanding of the impact of these contracts on an entity’s financial performance and cash flows The effect of the implementation of these amendments are not expected to have a material impact.	1 January 2026
Annual improvements – Volume 11	Annual improvements include only those amendments that clarify wording in IFRS Accounting Standards or address relatively minor unintended consequences, oversights, or conflicts within existing requirements. The current annual improvements cycle includes amendments to IFRS 7 Financial Instruments: Disclosure (including its implementation guidance), IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows. The effect of the implementation of these amendments 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 An analysis has been performed to identify items which are required to be classified within the investing and financing categories. The accounting systems are being updated to reflect newly created accounts and configurations changes arising from this analysis. A detailed analysis is currently being performed for items to be included in the operating category, including the appropriate aggregation and disaggregation of these items. In addition, the requirements related to management-defined performance measures are also being considered.	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 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
IAS 21 The Effects of Changes in Foreign Exchange Rates – Translation to a hyperinflationary presentation currency	The amendment specifies the translation procedures to be applied when an entity’s presentation currency is that of a hyperinflationary economy. The entity applies the amendments if its functional currency is that of a non-hyperinflationary economy and it is translating its results and financial position into the currency of a hyperinflationary economy. The amendment aims to improve the usefulness of the resulting information in a cost-effective manner. The effect of the implementation of these amendments will have no impact as Exxaro does not have any entities operating in a hyperinflationary economy.	1 January 2027