for the year ended 31 December 2014
The summarised consolidated financial statements for the year ended 31 December 2014 have been prepared in accordance with the framework concepts and the measurements and recognition requirements of International Financial Reporting Standards (IFRS) and interpretations issued respectively by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB in particular International Accounting Standard 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting Standards Council, that are relevant to its operations and effective for annual reporting periods beginning on or after 1 January 2014, and the South African Companies Act 2008.
The summarised consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments in equity instruments classified as available-for-sale.
The accounting policies applied in the preparation of the summarised consolidated financial statements are consistent with those applied for the comparative year, except for the following new or revised standards and amendments thereto, and interpretations as issued by the IASB, which are effective for the current reporting period that were adopted:
- IFRIC 21 Levies
- IAS 36 Impairment of Assets
The adoption of these new and revised accounting standards did not have a material impact on the consolidated financial statements and as such there is no change to comparative information resulting from the adoption of these standards.
The summarised consolidated financial statements are presented in rand, which is the group’s functional and presentation currency.
The preparation of financial statements, in conformity with IFRS, requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are:
- The assumptions used in impairment tests of carrying values of cash-generating units and intangible assets;
- Estimates of useful lives and residual values for intangible assets and property, plant and equipment;
- and Valuation of available-for-sale investment.
Mr MJ Wellhausen, chief financial officer, is responsible for this set of financial results and has supervised the preparation thereof.