ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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D

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1

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A S

C

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Accounting Policies

ECIC has elected to defer the implementation of IFRS 9 to 01 April 2023 when IFRS 17 is expected to be effective. Based on the assessment conducted IFRS 9 has no significant impact on the recognition, measurement and disclosure of financial assets and financial liabilities for the Corporation except for the impairment allowance. The table below presents the recognition and measurement in terms of IAS 39 and IFRS 9:

Item

IAS 39

IFRS 9

Impact

Financial assets Financial assets at fair value excluding unlisted equities Financial assets at fair value – unlisted equities

Fair value through profit or loss Available for sale with FV movements through other comprehensive income

Fair value through profit or loss Fair value through other comprehensive income

The impact is insignificant

The impact is insignificant, except on sale of the investment: previous fair value movements cannot be recycled to profit or loss

Cash and cash equivalents Trade and other receivables Provision for doubtful debts

Amortised cost Amortised cost Incurred losses

Amortised cost Amortised cost

The impact is insignificant The impact is insignificant

Expected credit loss The impact is insignificant as the significant portion of trade and other receivables is comprised of insurance debtors which are scoped out of IFRS 9.

Financial liabilities Liability for interest make up

Fair value through profit or loss

Fair value through profit or loss

The impact is insignificant

Trade and other payables

Amortised cost

Amortised cost

The impact is insignificant

IFRS 9 provides a temporary exemption that permits ECIC to apply IAS 39 rather than IFRS 9 when accounting for financial instruments for annual periods beginning before 01 April 2023. The Corporation is eligible to apply the temporary exemption from IFRS 9 due to the following criteria:

c it has not previously applied any version of IFRS 9; and c its activities are predominantly connected with insurance.

As at 31 March 2016, the carrying amount of the liabilities arising from contracts within the scope of this IFRS 4 were greater than 90% of the total carrying amount of all liabilities. Since 31 March 2016, there has been no change in the Corporation’s activities. The Corporation’s financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are all measured at amortised cost. Below are the financial assets which are measured at amortised cost and fair value. The fair value balances and adjustments are for financial assets that are: c managed at fair value; or c whose contractual terms do not give rise on specified dates to cash flows that are solely payments of principal and interest on the outstanding principal amounts.

2023

2022

Fair value adjustment (R’000)

Fair value adjustment (R’000)

Fair value (R’000) 7 633 095

Fair value (R’000) 4 578 311

Financial assets

Financial assets at fair value

(111 432)

(33 630)

Trade and other receivables (see note 19)

216 877

– –

33 006

– –

Cash and cash equivalent

2 355 461 10 205 433

4 487 620 9 098 937

Total

(111 432)

(33 630)

The significant accounting policies are set out below. These policies are consistently applied to all years presented unless otherwise stated.

YOUR EXPORT RISK PARTNER

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