| 1 |
Basis of preparation |
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The abridged group financial statements comply with IAS
34 Interim Financial Reporting. These abridged financial statements do
not contain all the information and disclosures required in the annual
financial statements, and comply with International Financial Reporting
Standards.
Accounting policies used in the abridged consolidated financial statements are the same as those used to prepare the group annual financial statements.
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| 2 |
Significant accounting policies |
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The accounting policies applied are consistent with those followed in the preparation of the consolidated annual financial statements for the period ended 28 June 2009, except for the adoption of the following IFRS, IFRIC interpretations, amendments and circulars that became effective during the current period. These changes had no significant impact on the reported results other than giving rise to additional disclosures and a revision to the relevant accounting policies: |
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IFRS 8 Operating Segments |
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IAS 1 Revised – Presentation of Financial Statements |
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IFRS 7 Amendments – Financial Instruments Disclosure |
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IAS 23 Amendments – Borrowing Costs |
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IAS 27 Amendments – Consolidated and Separate Financial Statements |
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IFRS 3 Revised – Business Combinations |
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IFRS 2 Amendments – Share-based Payments: Vesting Conditions and Cancellation |
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IAS 38 Improvements – Intangible Assets: Expenditure on Advertising and Promotional Activities |
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IAS 39 Amendments – Eligible Hedged Items |
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IFRS 5 Amendments – Non-current Assets Held for Sale and Discontinued Operations |
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Circular 3/2009 – Headline Earnings |
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The following amendments have been early adopted by the group, but had no material impact on the reported results:
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IFRS 8 Improvements – Operating Segments |
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IAS 36 Improvements – Impairment of Assets |
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IFRS 2 Amendments – Share-based Payment: Group Share-based Payment Transactions |
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| 3 |
Reclassification of comparative figures |
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Income received relating to investment activities has been separately disclosed from other revenue and is excluded from operating profit.
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| 4 |
Abnormal foreign exchange related (gain)/loss |
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An unrealised foreign exchange loss of R79m (R57m after tax) on the marking-to-market of foreign exchange contracts was incurred at 28 June 2009. A subsequent gain of R79m
(R57m after tax) is included in gross profit in the current period.
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| 5 |
Earnings per share |
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The difference between earnings per share and diluted earnings per share is due to the impact of outstanding options under the group share incentive schemes and preference shares issued in terms of the BEE employee share ownership scheme.
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| 6 |
Property, plant and equipment and intangible assets |
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During the financial period, the group acquired property, plant and equipment with a cost of R500m (2009: R617m) and acquired intangible assets with a cost of R107m (2009: R137m). The current period’s FEC adjustment is insignificant.
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| 7 |
Issue and repurchase of shares |
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During the current financial period to 27 June 2010,
6 172 402 (2009: 5 595 343) ordinary shares were issued in terms of the group’s executive share incentive scheme.
17 378 892 (2009: 26 384 969) shares were repurchased from the market by E-Com (Proprietary) Limited and
4 061 222 (2009: nil) shares were repurchased from the market by Woolworths (Proprietary) Limited. These shares are held as treasury shares by the group.
40 497 604 (2009: nil) shares were issued to Woolworths (Proprietary) Limited and are held as treasury shares.
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| 8 |
Contingent liabilities |
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Various group companies are parties to legal disputes and investigations which have arisen in the ordinary
course of business. Whilst the outcome of some of these matters cannot readily be foreseen, the directors do not expect the outcomes to have a material financial effect.
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| 9 |
Borrowing facilities |
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Unutilised banking facilities amount to R2 443m (2009: R3 477m). There is no limit in the articles of association on the group’s authority to raise interest-bearing debt.
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| 10 |
Related party transactions |
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The group entered into related party transactions during the period. Information regarding the related parties is included in the annual financial statements.
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| 11 |
Events subsequent to reporting date |
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No event material to the understanding of these financial statements has occurred between the end of the financial period and the date of approval.
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| 12 |
Approval of annual financial statements |
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The annual financial statements were approved by the board of directors on 25 August 2010.
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| 13 |
Audit opinion |
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These abridged consolidated group financial statements have been extracted from the audited annual financial statements on which Ernst & Young Inc and SAB&T Inc have issued an unqualified report. This report is available for inspection at the company’s registered office. |
