GENERALLY RECOGNISED ACCOUNTING PRACTICE (GRAP) - …

1 GENERALLY RECOGNISED ACCOUNTING PRACTICE (GRAP) Disclosure/Compliance Checklist For The financial Year Ended 2014 GRAP Disclosure/Compliance Checklist Updated March 2013 Page 2 of 216 IMPORTANT CONSIDERATIONS The references in the body of the document are in relation to the Standards of GRAP as at 31 March 2014 and thus incorporate the latest improvements to the Standards. The specific Standards impacted by the ASB s 2013 improvements project are as listed below: GRAP 1: Presentation of financial Statements (Consequential Amendments) GRAP 5: Borrowing Cost GRAP 100: Discontinued Operations Note: The effective date for the improvements and updates to the abovementioned Standards is only 1 April 2014, but as earlier adoption of these improvements and updates is encouraged, this Disclosure/Compliance checklist has been developed to facilitate early adoption.

2 The checklist includes all Standards with an effective date even if the effective date is in a future reporting period such as GRAP 20 on Related Party Transactions. Standards that have been approved by the ASB and are awaiting promulgation by the Minister of Finance, such as GRAP 107 on Mergers, have been included. However, these approved and NOT effective GRAP Standards should be utilised to the extent that the National Treasury Guide on the Application of the GRAP Reporting Framework provides prescription. This guide is available as an attachment of this document or is available online at: DISCLAIMER This document serves as a checklist to assist in determining that the minimum requirements of the effective Standards of GRAP have been complied with.

3 It should NOT be considered in isolation as a control for compliance or disclosure purposes. It is strongly recommended, that the Disclosure/Compliance Checklist be utilised in conjunction with the Applicable GRAP Standard(s) and that reliance be placed on the requirements of the individual GRAP Standard(s) rather than solely on this Disclosure/Compliance Checklist. The full list of GRAP Standards is available on: GRAP Disclosure/Compliance Checklist Updated March 2013 Page 3 of 216 TABLE OF CONTENTS SECTION A General and ACCOUNTING Policies .. 6 General .. 6 Prior period errors ..11 ACCOUNTING policies ..13 Going concern ..21 Consistency of presentation ..22 Materiality and aggregation ..22 Offsetting ..23 Comparative information ..23 The effects of changes in foreign exchange rates.

4 24 financial reporting in hyperinflationary economies ..30 SECTION B Statement of financial performance .. 32 General ..32 Revenue from exchange transactions ..34 Revenue from non-exchange transactions (taxes and transfers) ..38 Construction contracts ..42 Segment Reporting ..46 Discontinued Operations ..51 Employee Benefits ..53 financial instruments ..55 SECTION C Statement of financial position .. 57 General ..57 Property, plant and equipment ..62 Borrowing costs ..70 Leases ..73 Investment property ..82 Impairment of non-cash-generating assets ..93 Inventories .. 100 Provisions, contingent liabilities and contingent assets .. 104 GRAP Disclosure/Compliance Checklist Updated March 2013 Page 4 of 216 Discontinued operations .. 111 Agriculture .. 112 Intangible assets .. 116 Employee Benefits.

5 127 financial Instruments .. 146 SECTION D Statement of changes in net assets/equity .. 159 SECTION E Cash flow 161 General .. 161 SECTION F Notes .. 166 General .. 166 Events after the reporting date .. 167 SECTION G Consolidated and separate financial statements .. 169 Presentation of consolidated financial statements .. 169 SECTION H Consolidated Accounts Associates and Joint Ventures .. 178 ACCOUNTING for investments in associates .. 178 financial reporting of interests in joint ventures .. 184 SECTION I Standards Approved But Not Effective .. 192 I1 .. 192 Related Party Disclosures .. 192 I2 .. 197 Transfer Of Functions Between Entities Under Common Control .. 197 I3 .. 201 Transfer of Functions between Entities Not Under Common Control .. 201 I4 .. 209 Mergers .. 209 I5 .. 212 Service Concession Arrangement: Grantor.

6 212 I6 .. 214 Statutory Receivables .. 214 GRAP Disclosure/Compliance Checklist Updated March 2013 Page 5 of 216 GRAP Disclosure/Compliance Checklist Updated March 2013 Page 6 of 216 SECTION A General and ACCOUNTING Policies Yes/No/NA Ref Comments A1 General Components of financial statements Have the following components been included in the financial statements: (a) statement of financial position? (a) (b) statement of financial performance? (b) (c) statement of changes in net assets? (c) (d) cash flow statement? (d) (e) where the entity makes publicly available its approved budget, a comparison of budget and actual amounts, either as a separate additional financial statement or as a budget column in the financial statements?

7 N/A for 2008/09 FY (e) (f) notes disclosing, in summary, significant ACCOUNTING policies? (f) Fair presentation and compliance with the Standards of GRAP Have the financial statements presented fairly the financial position, financial performance and cash flows of the entity? Note: the appropriate application of GRAPs, with additional disclosures where necessary, is presumed to result in financial statements that achieve a fair presentation [ ]. Have the financial statements complied with all the requirements of Standards of GRAP? Where the financial statements comply with GRAPs, has this fact been disclosed? GRAP Disclosure/Compliance Checklist Updated March 2013 Page 7 of 216 Yes/No/NA Ref Comments Note: financial statements should not be described as complying with GRAPs unless they comply with all the requirements of each applicable GRAP [ ].

8 Note: inappropriate ACCOUNTING treatments are not rectified either by disclosure of the ACCOUNTING policies used, or by notes or explanatory material [ ]. In the extremely rare circumstances in which management concludes that compliance with a requirement in an GRAP would be so misleading that it would conflict, with the objective of financial statements set out in GRAP 1 Presentation of financial Statements, and where the relevant regulatory framework requires, or otherwise does not prohibit, such as a departure, has following been disclosed: (a) that management has concluded that the financial statements fairly present the entity s financial position, financial performance and cash flows? (a) (b) that the entity has complied with applicable GRAPs except that it has departed from a particular requirement in order to achieve a fair presentation?

9 (b) (c) the title of the GRAP from which the entity has departed, the nature of the departure, including the treatment that the GRAP would require, the reason why that treatment would be so misleading in the circumstances that it would conflict with the objective of financial statements set out in GRAP 1 Presentation of financial Statements, and the treatment adopted? (c) GRAP Disclosure/Compliance Checklist Updated March 2013 Page 8 of 216 Yes/No/NA Ref Comments (d) the financial impact of the departure on each item in the financial statements that would have been reported in complying with the requirement for each period presented? (d) Where an entity has departed from a requirement of a GRAP in a prior period, and that departure affects the amounts RECOGNISED in the financial statements for the current period, has the following been disclosed: (a) the title of the GRAP from which the entity has departed, the nature of the departure, including the treatment that the GRAP would require, the reason why that treatment would be so misleading in the circumstances that it would conflict with the objective of financial statements set out in GRAP 1, and the treatment adopted?

10 (c) (b) the financial impact of the departure on each item in the financial statements that would have been reported in complying with the requirement for each period presented? (d) Identification of financial statements Have the financial statements been clearly identified, and distinguished from other information in the same published document? Has each component of the financial statements been clearly identified? GRAP Disclosure/Compliance Checklist Updated March 2013 Page 9 of 216 Yes/No/NA Ref Comments Has the following information been prominently displayed, and repeated where it is necessary for a proper understanding of the information presented: (a) the name of the reporting entity or other means of identification, and any change in that information from the preceding reporting date?