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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
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Assets classified as held for sale are not subsequently depreciated or amortised and are held at the lower of their carrying value or fair value less
costs to sell (incremental costs directly attributable to the sale, excluding the finance costs and income tax expense). A discontinued operation
is a separate major line of business or geographical area of operation that has been dispose of, or classified as held for sale, as part of a single
coordinated plan.
In the consolidated statement of comprehensive income of the reporting period, and of the comparable period, income and expenses from
discontinued operations are reported separately from the income and expenses from continuing activities, down to the level of profit after
taxes, even when the parent retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss (after taxes) is reported
separately in profit or loss and other comprehensive income.
In the statement of financial position, assets and liabilities classified as held for sale are presented separately from other assets and liabilities
as current items.
UNDERLYING CONCEPTS
The financial statements are prepared on the going-concern basis, which assumes that the Group will continue in operation for the foreseeable
future.
The financial statements are prepared using the accrual basis of accounting whereby the effects of transactions and other events are recognised
when they occur, rather than when the cash is received or paid.
Assets and liabilities, and income and expenses are not offset unless specifically permitted by an accounting standard. Financial assets and
financial liabilities are only offset when there is a legally enforceable right to offset, and the intention is either to settle on a net basis or to realise
the asset and settle the liability simultaneously.
Accounting policies are the specific principles, bases, conventions, rules and practices applied in preparing and presenting financial statements.
Changes in accounting policies are accounted for in accordance with the transitional provisions in the standard. If no such guidance is given,
they are applied retrospectively.
If after making every reasonable effort to do so, it is impracticable to apply the change retrospectively, it is applied prospectively from the
beginning of the earliest period practicable.
Changes in accounting estimates are adjustments to assets or liabilities or the amounts of periodic consumption of assets that result from new
information or new developments. Such changes are recognised in profit or loss in the period they occur.
Prior period errors are omissions or misstatements in the financial statements of one or more prior periods. They may arise from a failure to use,
or misuse of reliable information that was available at the time or could reasonably be expected to have been obtained. Where prior period
errors are material, they are retrospectively restated. If it is impracticable to do so, they are corrected prospectively from the beginning of the
earliest period practicable.
FOREIGN CURRENCIES
The consolidated financial statements are presented in South African Rands (Rands), which is the Group’s presentational currency and the
Company’s functional currency.
Each foreign entity in the Group determines its own functional currency.
FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded at the rates of exchange ruling at the transaction date.
FOREIGN CURRENCY BALANCES
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange ruling at the
reporting date. Exchange differences are taken to profit or loss, except for differences arising on foreign currency borrowings that provide
a hedge against a net investment in a foreign entity. These are taken directly to other comprehensive income until the disposal of the net
investment, at which time they are recognised in profit or loss. Tax charges and credits attributable to such exchange differences are also
accounted for in other comprehensive income.