2012 Integrated report - Sappi

estimates. Additionally, future changes to environmental laws and
regulations, life-of-operation estimates and discount rates could
affect the carrying amount of this liability.
Due to the uncertainty in the timing of the closure of the group’s
facilities, some of these obligations have an indeterminate settlement
date, and the group believes that adequate information does not
exist to apply an expected-present-value technique to estimate any
such potential obligations. Accordingly, the group does not record a
liability for such remediation until a decision is made that allows
reasonable estimation of the timing of such remediation.
2.4 Adoption of accounting standards in the
current year
The following standards, interpretations and significant amendments
or revisions to standards have been adopted by the group in the
current year:
• IFRS 7 Financial Instruments: Disclosures – Offsetting Financial
Assets and Financial Liabilities – September 2014;
• IFRS 10 Consolidated Financial Statements – IFRS 10 specifies
control as a single basis for consolidation for all entities, regardless
of the nature of the investee – September 2014;
• IFRS 11 Joint Arrangements – classifies joint arrangements as
either joint operations or joint ventures and requires different
treatment for these – September 2014;
• IFRS 12 Disclosure of Interest in Other Entities – September 2014;
• IAS 32 Financial Instruments: Presentation – Offsetting Financial
Assets and Financial Liabilities – September 2015;
• IAS 27 Separate Financial Statements – amended for the issuance
of IFRS 10 but retains the current guidance for separate financial
statements – September 2014; and
• Various improvements to IFRSs.
Standards, interpretations and amendments
to standards
The group adopted the following standards, interpretations
and amendments to standards during the current year, all of
which had no material impact on the group’s reported results
or financial position:
• IAS 24 Related Party Disclosures – Revised definition of related
parties;
• IFRS 7 Financial Instruments: Disclosures – Transfers of financial
assets;
• IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction; and
• Various improvements to IFRSs.
2.5 Accounting standards, interpretations and
amendments to existing standards that are
not yet effective
The group has not yet adopted certain new standards, amendments
and interpretations to existing standards, which have been published
but are only effective for the group’s accounting periods beginning
on or after October 2012 or later periods. The group is currently
evaluating the impact that the adoption of these IFRSs will have on
its consolidated financial statements when they are adopted in the
respective periods indicated. These new standards and their effective
dates for the group’s annual accounting periods are listed below:
• IAS 19 (Revised) Employee Benefits – IAS 19 (Revised) requires
the recognition of changes in the defined benefit obligation and in
plan assets when those changes occur eliminating the corridor
approach and accelerating the recognition of past service costs.
Net interest is calculated by using high quality corporate bond
yields – September 2014;
• IFRS 13 Fair Value Measurements – establishes a single source of
guidance for fair value measurements under IFRS – September
2014;
• IAS 28 Investments in Associates and Joint Ventures –
amendment to conform changes based on the issuance of IFRS
10 and IFRS 11 – September 2014; and
• IFRS 9 Financial Instruments – IFRS 9 introduces new
requirements for classifying and measuring financial assets and
liabilities – September 2016.
Amendments, revisions or issues of the following standards or
interpretations which will only become mandatory for the group’s
consolidated financial statements on the dates indicated are not
expected to have a material impact on the group’s results or
financial position:
• IAS 1 Presentation of Financial Statements – Other Comprehensive
Income – September 2013;
• IAS 12 Deferred Tax – Investment property measured at fair value
– September 2013;
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