The financial statements incorporate the following principal accounting
policies, which are consistent with those applied in the
previous year, except for IFRS 8: Segment reporting, which has
been early adopted.
Basis of preparation
These consolidated financial statements are prepared in accordance
with, and comply with International Financial Reporting Standards
(“IFRS”) and the South African Companies Act of 1973, as amended
(“the Companies Act”). The consolidated financial statements are
prepared in accordance with the going concern principle under
the historical cost basis as modified by the revaluation of financial
assets at fair value through profit or loss, available-for-sale financial
assets and derivative instruments.
The preparation of financial statements in accordance with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise judgement in the process of
applying the company’s accounting policies. The areas involving
a high degree of judgement or areas where assumptions and estimates
are significant to the financial statements are disclosed in
note 42.
Standards in issue, not yet effective
At the date of authorisation of these financial statements, the following
relevant standards and interpretations were in issue but not yet
effective. The statements are effective for annual periods beginning
on or after 1 January 2009, other than that relating to IFRS3: Business
combinations and IFRIC17: Distributions of non-cash assets
to owners, both of which come into effect for periods beginning on
or after 1 July 2009.
IFRS1: Consolidated and separate financial statements: Cost of
investment in subsidiary, jointly controlled entity or associate
The amendment allows first-time adopters to use a deemed cost
of either fair value or the carrying amount under previous accounting
practice to measure the initial cost of investments in subsidiaries,
jointly controlled entities and associates in the separate financial
statements. The amendment also removes the definition of cost
method and replaces it with a requirement to present dividends
as income in the separate financial statements of the investor. The
statement is further revised, effective 1 July 2009, requiring the
effects of all transactions with non-controlling interests to be recorded
in equity if there is no change in control.
IFRS3: Business combinations
This is a comprehensive revision on applying the acquisition method
with consequential amendments to IAS27 - Consolidated and separate
financial statements, IAS28 - Investments in associates and
IAS31 - Joint ventures.
IFRS7: Financial instruments - disclosures
The amendments require advanced disclosure about fair value
measurements and liquidity risk.
IAS1: Presentation of financial statements
The objective of this standard is to prescribe the basis for presentation
of general purpose financial statements, to ensure comparability
both with the entity’s financial statements of previous periods and
with the financial statements of other entities. This is a comprehensive
revision including requiring a statement of comparative
income.
IAS32: Financial instruments: presentation - puttable financial
instruments and obligations arising on liquidation
The amendment requires entities to classify certain financial instruments
as equity.
IAS39: Financial instruments: disclosures classification
The amendment clarifies the reclassification criteria for financial
instruments.
IFRIC17: Distributions of non-cash assets to owners
The interpretation addresses the recognition and disclosure requirements
for entities that distribute non-cash assets as dividends.
The directors have not yet determined what the impact of these new
standards and interpretation on the group and company will be.
Standards in issue, not yet effective and not considered relevant
to the group’s operations at present
The statements are effective for annual periods beginning on or
after 1 January 2009, other than that relating to IAS39: Financial
instruments which comes into effect for periods beginning on or
after 1 July 2009.
IFRS2: Share-based payments
IAS23: Borrowing costs
IAS39: Financial instruments: recognition and measurement -
eligible hedged items
IFRIC18: Transfer of assets from customers
Standards in issue and not relevant to the group’s operations
at present
IFRIC12: Service concession arrangements
IFRIC13: Customer loyalty programmes
IFRIC14: IAS19 - The limit on a defined benefit asset, minimum
funding requirements and their interaction
IFRIC16: Hedges of a net investment in a foreign operation |