2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08NOTES TO THECONSOLIDATED ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 200836 New standards, amendments and interpretations (CONTINUED)IFRIC 13 Customer Loyalty ProgrammesThe interpretation clarifies the application of IAS 18 to customer loyalty programmes. The interpretation requires anentity that grants loyalty award credits to allocate some of the initial proceeds from the initial revenue-generatingtransaction to the award credit as a liability (entity’s obligation to provide award). The award is accounted for as aseparate revenue generating transaction. The interpretation is effective for annual periods commencing on or after 1 July2008.The group has no customer loyalty programmes currently and the interpretation will have no effect on the group.IFRIC 14 IAS 10 The Limit on a Defined-benefit Asset, Minimum Funding Requirements and their InteractionThe interpretation addresses the implication of minimum funding requirements on the recognition of a defined-benefitobligation. The interpretation is effective for annual periods commencing on or after 1 January 2008.The group will adopt the interpretation on its effective date. Currently, the group’s defined-benefit plan is not fundedfrom separate plan assets. No effect is anticipated on adoption of the interpretation.106