Entire Document - Chris Hani District Municipality

1. BASIS OF PRESENTATION (continued)1.6 Standards, Amendments to Standards and Interpretations Issued but not yetEffective (continued)Application of all of the aforementioned GRAP standards will be effective from a dateto be announced by the Minister of Finance, who announced that the applicationof GRAP 21, GRAP 23, GRAP 24, GRAP 26, GRAP 103 and GRAP 104 will beeffective for the period starting after 1 April 2012. All other standards as listed abovewill only be effective on a date to be announced by the Minister of Finance.The ASB Directive 5, paragraph 29, sets out the principles for the application of theGRAP 3 guidelines in the determination of the GRAP Reporting Framework hierarchyas set out in the standard of GRAP 3 on Accounting Policies, Changes in AccountingEstimates and Errors.Where a standard of GRAP is approved as effective, it replaces the equivalentstatement of International Public Sector Accounting Standards Board, InternationalFinancial Reporting Standards or Generally Accepted Accounting Principles. Wherea standard of GRAP has been issued but is not yet in effect, the municipalitymay select to apply the principles established in that standard in developing anappropriate Accounting Policy dealing with a particular section or event beforeapplying paragraph 12 of the Standard of GRAP on Accounting Policies, Changes inAccounting Estimates and Errors.Chapter 4The municipality applied the principles established in the following Standards of GRAPthat have been issued but are not yet effective, in developing appropriate AccountingPolicies dealing with the following transactions, but have not early adopted theseStandards:♦♦♦♦Impairment of Non-cash-generating Assets (GRAP 21 - issued March 2009)Revenue from Non-Exchange Transactions (GRAP 23 - issued February2008)Impairment of Cash-generating Assets (GRAP 26 - issued March 2009)Financial Instruments (GRAP 104 - issued October 2009)Management has considered all of the above-mentioned GRAP Standards issuedbut not yet effective and anticipates that the adoption of these standards will nothave a significant impact on the financial position, financial performance or cashflows of the municipality.243