2. Accounting framework and significant judgements
2.2 New accounting pronouncements
2.2.1 Other standards, amendments to standards and interpretations
 

The standards and amendments to standards listed below were adopted, effective 1 April 2023, and did not have a material impact on the Group:

Consideration Effective date
IAS 1 (Presentation of Financial Statements)
Amendments regarding the disclosure of accounting policies
Annual periods beginning on or after 1 January 2023
IAS 12 (Income Taxes)
Amendments regarding deferred tax related to assets and liabilities arising from a single transaction
Annual periods beginning on or after 1 January 2023
IAS 12 (Income Taxes)
Amendments regarding international tax reform – pillar two model rules
Annual periods beginning on or after 1 January 2023
IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) Definition of accounting estimate Annual periods beginning on or after 1 January 2023

Adoption of IFRS 17 (Insurance Contracts)
The Group has retrospectively adopted IFRS 17 (Insurance Contracts) with effect from 1 April 2023. Through the cell captives, as part of the Group's core business, the Group sells life insurance and device insurance to its customers. Across the Group, IFRS 17 is only applicable to the third-party insurance cell captives (Guardrisk short-term life insurance cell captive and Mutual and Federal Risk Financing Limited (MFRF) short-term handset and device insurance). The Group qualified to use the premium allocation approach (PAA) for both cell captives, resulting in an immaterial quantitative impact on adoption.

The Group continues to invest in its insurance business and considers the revenue from insurance as part of its operating revenue. As required by IFRS 17, the Group has now disaggregated the presentation of its insurance results business on the face of its statement of profit or loss and other comprehensive income. The disaggregation resulted in the Group introducing an insurance revenue line of R281 million (31 March 2023: R203 million) and an insurance service expense line of R185 million (31 March 2023: R209 million) in the statement of profit or loss and other comprehensive income. The impact is neutral on net profit or loss after tax for the year. Refer to note 2.7 for each affected line item.

Adoption of IAS 12 amendments
With effect from 1 April 2023, the Group retrospectively adopted the IAS 12 amendments for deferred tax relating to assets and liabilities arising from a single transaction. The amendment prohibits the use of the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. The amendments apply to taxable and deductible temporary differences associated with right-of-use assets and lease liabilities as well as decommissioning obligations and corresponding amounts recognised as assets at the beginning of the earliest comparative period presented.

The adoption of IAS 12 amendments did not have an impact in the primary financial statements' presentation across the Group. The amendment resulted in a restatement in the Group deferred tax disclosure note due to some of the Group entities having calculated the deferred tax on right-of-use assets and lease liabilities on a net basis, as well the elimination of the intercompany right-of-use assets and lease liabilities being on net basis. There is no disclosure impact on Telkom Company. Refer to note 8.2 for the restatement impact.

The standards and amendments listed below will be effective in future reporting periods. It is expected that the Group will adopt the pronouncements on their respective effective dates. The amendments are not expected to have a material impact.

Consideration Effective date
IFRS 16 (Leases)
Amendments regarding lease liability in a sale and leaseback, seller-lessee subsequent measurement in sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale
Annual periods beginning on or after 1 January 2024
IAS 1 (Presentation of Financial Statements)
Amendment regarding non-current liabilities with covenants
Annual periods beginning on or after 1 January 2024
IAS 7 (Statement of Cash Flows) and IFRS 7 (Financial Instruments: Disclosures) Amendment regarding supplier finance arrangement disclosure Annual periods beginning on or after 1 January 2024
IAS 21 (The Effects of Changes in Foreign Exchange Rates)
Amendment regarding the entity's transaction or operation in a foreign currency that is not exchangeable into other currency at a measurement date for a specified purpose
Annual periods beginning on or after 1 January 2025