Telkom AR front.qxp

Notes to the annual financial statements (continued)
for the three years ended March 31, 2009
40. ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
Telkom Annual Report 2009 333
The Company has not early adopted the following standards, interpretations and amendments that have been issued and are not yet
effective:
IFRS1 First-time Adoption of International Financial Reporting Standards: Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate (amended)
This amendment is effective for annual periods beginning on or after January 1, 2009. This standard is amended to allow an entity, in its
separate financial statements, to determine the cost of investments in subsidiaries, jointly controlled entities or associates (in its opening IFRS
financial statements) as one of the following amounts:
• Cost determined in accordance with IAS27
• At the fair value of the investment at the date of the transition to IFRS, determined in accordance with IAS39 Financial Instruments:
Recognition and Measurement
• The previous GAAP carrying amount of the investment at the date of transition to IFRS
This determination is made for each investment, rather than being a policy decision.
The amendment does not have an impact on the annual financial statements.
IFRS2 Share-based Payment: Vesting Conditions and Cancellations (amended)
This amendment is effective for annual periods beginning on or after January 1, 2009. The amendments to IFRS2 Share-based Payment
clarifies the definition of vesting conditions and the accounting treatment of cancellations by the counterparty to a share-based arrangement.
The amendment will not have a material impact on the Company’s financial statements.
IFRS2 Share-Based Payment: Group Cash-Settled Share-Based Payment Arrangements (amended)
This amendment is effective for annual periods beginning on or after January 1, 2010. The amendment clarifies how an individual
subsidiary in a group should account for some share-based payment arrangements in its own financial statements. The amendment will not
have a material impact on the Company’s financial statements.
IFRS3 Business Combinations (revised)
The revisions are effective for annual periods beginning on or after July 1, 2009 .The revised standard still applies the acquisition method
of accounting for business combinations, with some significant changes. For example, all payments to purchase a business are to be
recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through the income
statement. There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value
or at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition-related costs should be expensed. The
revised standard will not have an impact on the annual financial statements.
IFRS7 Financial Instruments: Disclosures (amended)
The interpretation is applicable for annual periods beginning on or after January 1, 2009. The amendment requires enhanced disclosures
about fair value measurements and liquidity risk. The impact of the amendment is being evaluated.
IFRS8 Operating Segments
This standard is effective for annual periods beginning on or after January 1, 2009. The standard requires operating segments to be
identified on the basis of internal reports about components of the entity that are regularly reviewed by the chief operating decision maker
in order to allocate resources to the segment and to assess its performance. The impact of this standard is currently being evaluated.
IFRIC9 Reassessment of Embedded Derivatives (amended)
The amendment is effective for annual periods ending on or after June 30, 2009. The amendment clarifies that on reclassification of a
financial asset out of the ‘fair value through profit or loss’ category, all embedded derivatives have to be assessed and, if necessary,
separately accounted for in financial statements. The amendment will not have an impact on the financial statements as Telkom does not
have material embedded derivatives.