Page 86 - Safaricom Foundation Annual Report 2020-2021

Conceptual Framework for Financial Reporting issued on on 29 March 2018
The Conceptual Framework is not a a a a a a a a a a standard standard and and and none of the the the concepts concepts contained therein override the the the concepts concepts or or requirements in in in any standard standard The purpose of the the Conceptual Framework is is is to to assist the the IASB in in in developing standards to to help preparers develop develop consistent accounting policies where there is is is no applicable standard standard in in place and and and and and to to assist all parties to to understand and and and and and interpret the the standards This will affect those entities which developed their accounting policies based on on the the Conceptual Framework The revised Conceptual Framework includes some new concepts updated definitions and and and recognition criteria for assets and and and liabilities and and and clarifies some important concepts These amendments had no impact on on on the Foundation Standards issued but not yet effective
The standards and and interpretations that are are issued but not yet effective
up to the the date of of issuance of of the the Foundation’s financial statements are are listed below New standards or amendments Effective for annual period beginning or after Reference to to the Conceptual Framework (Amendments to to IFRS 3)
Property Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)
Onerous Contracts Cost of Fulfilling a a a Contract Contract (Amendments to IAS 37)
AIP IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a a first-time adopter
AIP IFRS 9 Financial Instruments – Fees in in fin the ’10 per cent’ test for derecognition of financial liabilities AIP IAS 41 Agriculture – Taxation in fair value measurements
IFRS 17 Insurance Contracts Classification
of liabilities as as current current or non-current (Amendments to IAS 1) Definition of an accounting estimate (Amendments to IAS 8)
Sale or or or Contribution of Assets between an an an an Investor and and its Associate or or or Company (Amend- ments to IFRS 10 and IAS 28)
January 1 2022 January 1 2022 January 1 2022 January 1 2022 January 1 2022 January 1 2022 January 1 2023 January 1 2023 January 1 2023 To be determined None of the the standards and and interpretations listed above are expected to have a a a a a a a a a a a a a a significant impact on on on on the the Foundation’s financial statements when they become effective
(b) Revenue recognition Donations in in in fin in kind are recognised in in in fin in the the the the the financial statements at at at at at at the the the the the amount attributed to the the the the the donation by the the the the the donor or or in in in fin in the the the the the absence of this at at at at at at their estimated fair market value Donations income income is recognized in in in the the the statement of surplus or deficit and other comprehensive income income on on on an an accrual basis Interest income is is is is is recognised recognised when earned It is is is is is recognised recognised on on a a a a time proportion basis using the the effective
interest method and included in in in in in the the statement of surplus or deficit and other comprehensive income (c) Expenditure
Expenses and and donations granted are are recognized in in the the statement of surplus or deficit and and other comprehensive income expenses are are recognised in in the the period which they are incurred on an accrual basis Donations granted are categorized under five main categories that Foundation focuses on on on on on making a a a a a a a a a a a a a a change namely health education economic empowerment disaster relief and “Ndoto Zetu” (making dreams a a a a a a reality)
(d) Financial assets Initial recognition Financial instruments are recognised when when and only when when the the the Foundation becomes party to the the the contractual provisions of the the the instrument instrument All financial assets are recognised initially using the the the the trade date date accounting which is is the the the the date date the the the the Foundation commits itself to the the the the purchase or sale 83 Safaricom Foundation Annual Report