housing - National Housing Finance Corporation

GROUP ACCOUNTING POLICIES CONTINUED
2. BASIS OF PREPARATION (continued)
Segment information
The Group’s primary reporting format is based on business segments and its secondary format is based on
geographical segments. The operating businesses are organised and managed separately according to the nature
of the products and services provided, with each business segment representing a strategic business unit that
offers different products and serves different markets.
Standards and Interpretations issued, not yet effective, that the Corporation has not yet adopted
Only those standards which could have an impact on the Corporation, as a financial institution, are identified:
IFRS 7:
Financial instruments: Disclosure (including amendments to IAS 1, Presentation of financial
statements: Capital disclosures).
The standard deals with the disclosure of financial instruments as well as the disclosures of
qualitative and quantitative risks. This will result in more extensive disclosures of risks associated to
financial instruments being made.
IAS 39:
Financial instruments – recognition and measurement – fair value option.
The amendment restricts the extent to which entities can designate a financial asset or liability as
fair value through profit and loss to specific situations.
Operating lease adjustment
IAS 17, Leases
Net effect
on 2006
R’000
Net effect on opening balance
of distributable reserves at
31 March 2005
R’000
Leases were expensed on a payment
basis but have now been straight-lined 48 (289)
Conversion to IFRS
No amendments that affected either the opening distributable reserves or the current income statement were
required to conform to IFRS. No exemptions were elected in the adoption of IFRS by the Corporation.
38 NHFC ANNUAL REPORT 2006