icaz cpd ifrs and tax update seminar roadmap.pdf · transition to ifrs and use that fair value as...
TRANSCRIPT
ICAZ CPDICAZ CPD
IFRS and Tax Update SeminarIFRS and Tax Update Seminar
1© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
Roadmap to IFRSRoadmap to IFRSRoadmap to IFRSRoadmap to IFRS
AgendaAgenda
The road so far...
Summary of ED 2010/12
The road so far...
Summary of ED 2010/12
3
2010 audit reports2010 audit reports
© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
AgendaAgenda
The road so far...
Summary of ED 2010/12
The road so far...
Summary of ED 2010/12
4
Summary of ED 2010/12
2010 audit reports
Summary of ED 2010/12
2010 audit reports
© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
May 2009:May 2009:SAICA & ICAZ joint SAICA & ICAZ joint
June 2010:June 2010:IFRIC proposed to the IFRIC proposed to the IASB amendments to IASB amendments to IAS 29IAS 29
30 September 2010:30 September 2010:ED/2010/12 Severe ED/2010/12 Severe
The road so far...The road so far...
ICAZ published Guidance: ICAZ published Guidance: Change in Functional Currency Change in Functional Currency 20092009Further clarifications and Further clarifications and guidance issuedguidance issuedNot IFRS compliantNot IFRS compliant
SAICA & ICAZ joint SAICA & ICAZ joint proposal paper to IFRICproposal paper to IFRIC
ED/2010/12 Severe ED/2010/12 Severe Hyperinflation (proposed Hyperinflation (proposed amendment to IFRS 1)amendment to IFRS 1)No effective date specifiedNo effective date specifiedEarly adoption permittedEarly adoption permittedComments invited by 30 Comments invited by 30 November 2010November 2010
5© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
AgendaAgenda
The road so far...
Summary of ED 2010/12
The road so far...
Summary of ED 2010/12
6
Summary of ED 2010/12
2010 audit reports
Summary of ED 2010/12
2010 audit reports
© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
Was current functional currency subject to severe Was current functional currency subject to severe hyperinflation before the date of transition to IFRS?hyperinflation before the date of transition to IFRS?
Currency of hyperinflationary economy is subject to Currency of hyperinflationary economy is subject to severe hyperinflation if: severe hyperinflation if:
a reliable general price index is not available to all a reliable general price index is not available to all entities with transactions and balances in the currencyentities with transactions and balances in the currency; ;
Summary of ED 2010/12 Severe HyperinflationSummary of ED 2010/12 Severe Hyperinflation
entities with transactions and balances in the currencyentities with transactions and balances in the currency; ; andand
exchangeability between the currency and a relatively exchangeability between the currency and a relatively stable foreign currency does not exist. stable foreign currency does not exist.
The functional currency of an entity ceases to be subject The functional currency of an entity ceases to be subject to severe hyperinflation on to severe hyperinflation on the functional currency the functional currency normalisationnormalisation datedate
The date when the functional currency no longer has either, or both, of the characteristics above, or when there is a change in the entity’s functional currency to a currency
that is not subject to severe hyperinflation.
7© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss
entity. All rights reserved.
Summary of ED 2010/12 (continued)Summary of ED 2010/12 (continued)
When an entity’s date of transition to IFRS is on, or after, the When an entity’s date of transition to IFRS is on, or after, the functional currency functional currency normalisationnormalisation date, the entity may elect to date, the entity may elect to measure assets and liabilities at fair value on the date of measure assets and liabilities at fair value on the date of transition to IFRS and use that fair value as the deemed cost transition to IFRS and use that fair value as the deemed cost
If an entity makes the election, the entity’s first IFRS financial If an entity makes the election, the entity’s first IFRS financial If an entity makes the election, the entity’s first IFRS financial If an entity makes the election, the entity’s first IFRS financial statements would disclose an explanation of how, and why, statements would disclose an explanation of how, and why, the entity had, and then ceased to have, a functional currency the entity had, and then ceased to have, a functional currency that was subject to severe hyperinflationthat was subject to severe hyperinflation
The ED does not provide guidance for entities affec ted by The ED does not provide guidance for entities affec ted by severe hyperinflation that are not within the scope of severe hyperinflation that are not within the scope of
IFRS 1IFRS 1
8© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
AgendaAgenda
The road so far...
Summary of ED 2010/12
The road so far...
Summary of ED 2010/12
9
Summary of ED 2010/12
2010 audit reports
Summary of ED 2010/12
2010 audit reports
© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
2010 audit opinion – key elements2010 audit opinion – key elements
Director’s responsibility statement
Auditor’s responsibility statement
Basis of qualified opinion
Previous
Qualified opinion
Except for effects of
No modification
Previous financial
statements carried an
adverse opinion on the
statement of comprehensive
income, statement of
cash flows and statement of changes in
equity;
effects of matters
described in basis for qualified
opinion and the non-
disclosure of comparatives, the financial
statements are true and fair in
all material respects.
10© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.
All rights reserved.
Take note…Take note…
A statement of explicit and unreserved compliance A statement of explicit and unreserved compliance may only be possible formay only be possible for 20112011 reporting or earlier if reporting or earlier if ED 2010/12 is adoptedED 2010/12 is adopted
Financial statements for entities that were modifie d Financial statements for entities that were modifie d in 2009 due to the fact that the opening balance sh eet in 2009 due to the fact that the opening balance sh eet was not IFRS compliant could be revisited if ED was not IFRS compliant could be revisited if ED 2010/12 is adopted2010/12 is adopted
11© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.
All rights reserved.
QuestionsQuestions
© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. 12
KPMG contact detailsKPMG contact details
Contact Contact detailsdetails
Mutual GardensMutual Gardens
100 The Chase (West)100 The Chase (West)
Emerald HillEmerald Hill
13© 2010 KPMG Zimbabwe, a Zimbabwean limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.
All rights reserved.
.
Emerald HillEmerald Hill
302600 / 302600 / 303700 303700
Valerie MuyamboValerie Muyambo [email protected]@kpmg.com
www.kpmg.comwww.kpmg.com