Brainworks_Capital_Management_2012_Annual_Report

2012 FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2012
35
IAS 12 Deferred Tax: Recovery of Underlying Assets (effective from 1 January 2012 ) - this amendment
introduces an exception to the general measurement requirements of IAS 12 Income Taxes in respect of
investment properties measured at fair value. The measurement of deferred tax assets and liabilities, in
this limited circumstance, is based on a rebuttable presumption that the carrying amount of the investment
property will be recovered entirely through sale. The presumption can be rebutted only if the investment
property is depreciable and held within a business model whose objective is to consume substantially all
of the asset’s economic benefits over the life of the asset. Revised IAS 12 was adopted for the first time
for the year-ended 31 December 2012. There was no material impact on the financial statements.
IAS 1 Presentation of Items of Other Comprehensive Income (effective from 1 July 2012) - this
amendment requires that an entity present separately the items of other comprehensive income (OCI)
that would be reclassified to profit or loss in the future if certain conditions are met from those that would
never be reclassified to profit or loss; and change the title of the statement of comprehensive income to
the statement of profit or loss and other comprehensive income. However, an entity is still allowed to use
other titles. IAS 1 was adopted for the first time for the year-ending 31 December 2012. There was no
significant impact on the financial statements.
IFRS 10 Consolidated Financial Statements (effective from 1 January 2013) - this standard
introduces a new approach to determining which investees should be consolidated and provides a
single model to be applied in the control analysis for all investees. An investor controls an investee
when it is exposed or has rights to variable returns from its involvement with that investee, it has
the ability to affect those returns through its power over that investee and there is a link between
power and returns. Control is reassessed as facts and circumstances change. IFRS 10 supersedes IAS
27 (2008) and SIC-12 Consolidation - Special Purpose Entities. IFRS 10 will be adopted for the first
time for the year-ending 31 December 2013. The impact on the financial statements has not yet been
estimated.
IFRS 12 Disclosure of Interests in Other Entities (effective from 1 January 2013) - this standard combines,
in a single standard, the disclosure requirements for subsidiaries, associates and joint arrangements, as
well as unconsolidated structured entities. The required disclosures aim to provide information to enable
the user to evaluate the nature of, and risks associated with, an entity’s interests in other entities and
the effects of those interests on the entity’s financial position, financial performance and cash flows. The
adoption of the new standard in 2013 will increase the level of disclosure provided for the Company’s
interests in subsidiaries, joint arrangements, associates and structured entities. This standard may impact
the disclosure to be provided by the Company, but will have to be assessed based on IFRS 10 and IFRS
11 conclusions.
IFRS 13 Fair Value Measurement (effective 13 January 2013) - this standard introduces a single source
of guidance on fair value measurement for both financial and non-financial assets and liabilities by
defining fair value as an exit price, establishing a framework for measuring fair value and setting out
disclosures requirements for fair value measurements. IFRS 13 will be adopted for the first time for the
year-ending 31 December 2013. The impact on the financial statements has not yet been estimated.
IAS 27 Separate Financial Statements (2011) supersedes IAS 27 (2008) will be adopted in the year
2013 and is effective for year-ends commencing on or after 1 January 2013. IAS 27 (2011) carries
forward the existing accounting and disclosure requirements for separate financial statements, with some
minor clarifications. There will be no material impact on the financial statements.
IAS 28 Investments in Associates and Joint Ventures (2011) supersedes IAS 28 (2008) will be adopted
for the 2013 financial year and is effective for year-ends commencing on or after 1 January 2013.
IAS 28 (2011) makes the following amendments:
(i)
(ii)
IFRS 5 applies to an investment, or a portion of an investment, in an associate or a joint
venture that meets the criteria to be classified as held for sale; and
On cessation of significant influence or joint control, even if an investment in an associate
becomes an investment in a joint venture or vice versa, the entity does not remeasure the
retained interest. No material impact is expected on the financial statements.
BRAINWORKS CAPITAL MANAGEMENT (PRIVATE) LIMITED
2012 ANNUAL REPORT