NSE Annual Reports - The Nigerian Stock Exchange

NOTES TO THE CONSOLIDATED AND SEPARATEFINANCIAL STATEMENTS (CONT’D)FOR THE YEAR ENDED 31 DECEMBER 2012In line with the requirement of IFRS1, the revaluation surplus on land and buildings were reclassified toretained earnings. The net impact of this change is shown below:"In thousands of nairaGroup31 Dec2011Group01 Jan2011Exchange31 Dec2011Exchange01 Jan2011Consolidated and separate statement of financial positionRevaluation reserve (GAAP)Transfer of revaluation surplus to retainedearningsRevaluation reserve (IFRS)1,008,817(1,008,817)-1,008,817(1,008,817)-----(k)Under Nigerian GAAP, the group warehoused pension amounts payable to pension fund administrators inother liabilities. This was reclassified to retirement benefit obligations (defined contributions) under IFRS.The impact of this change is shown below:In thousands of nairaGroup31 Dec2011Group01 Jan2011Exchange31 Dec2011Exchange01 Jan2011Consolidated and separate statement of financial positionRetirement benefit obligations (GAAP)Defined contributions transferred fromother liabilities686,04625,8071,295,43214,959686,04625,8071,295,43214,959Retirement benefit obligations (IFRS)711,8531,310,391711,8531,310,391(l)Under Nigerian GAAP, deferred tax liability was recognized on the property and equipment in Nairaproperties. The property and equipment items could not be adequately substantiated. This necessitated thereversal of the deferred tax liability as deferred tax is based on the timing difference between depreciationand capital allowance charges on PPE.In thousands of nairaGroup31 Dec2011Group01 Jan2011Exchange31 Dec2011Exchange01 Jan2011Deferred tax (GAAP)Recognition of tax charge which was reversedon consolidationReversal of deferred tax liabilityDeferred tax (IFRS)548,5347,399(555,933)-411,236-(411,236)-------74A N N U A L R E P O R T & A C C O U N T S 2 0 1 2