for the six months ended 30 September 2014
The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and in compliance with the Listings Requirements of the JSE Limited and the South African Companies Act, 2008.
The condensed consolidated interim financial statements are presented in South African Rand, which is the Group’s functional currency. All financial information presented in Rand has been rounded off to the nearest million.
The condensed consolidated interim financial statements are prepared on the historical cost basis, with the exception of certain financial instruments initially (and sometimes subsequently) measured at fair value. The results of the interim period are not necessarily indicative of the results for the entire year and these reviewed financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2014.
The preparation of the condensed consolidated interim financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Although these estimates are based on management’s best knowledge of current events and actions that the Group may undertake in the future, actual results may differ from those estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were consistent with those applied to the consolidated financial statements for the year ended 31 March 2014.
The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the Group’s last annual financial statements for the year ended 31 March 2014.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
Pronouncement |
Title |
Effective date |
|---|---|---|
| IFRS 3 Business Combinations | Amendment to scope exception of joint ventures in paragraph 2(a). | 1 July 2014 |
| IFRS 8 Operating Segments | Amendment relating to aggregation of segments and reconciliation of the total reportable segments’ assets to the entity’s assets if segment assets are reported regularly. | 1 July 2014 |
| IFRS 11 Joint Arrangements | Amendment to IFRS 11 requirements for accounting for an acquired interest in a joint operation that constitutes a business and additional disclosure requirements in terms of IFRS 3 Business Combinations and other IFRSs for business combinations. | 1 January 2016 |
| IAS 16 Property, Plant and Equipment | Revaluation method: proportionate restatement of accumulated depreciation of an item of property, plant and equipment. | 1 July 2014 |
| IAS 16 Property, Plant and Equipment | Amendment to IAS 16 and IAS 41 to define bearer plants and include within the scope of IAS 16 Property, plant and equipment those bearer plants that are expected to bear produce for more than one period and have a remote likelihood of being sold as agricultural produce. These were previously in the scope of IAS 41. | 1 January 2016 |
| IAS 16 Property, Plant and Equipment | Amendments regarding the clarification of acceptable methods of depreciation and amortisation. | 1 January 2016 |
| IAS 27 Separate Financial Statements | Amendment to IAS 27 to enable an entity to account for investments in subsidiaries, joint ventures and associates using the equity method when preparing separate financial statements. | 1 January 2016 |
| IAS 32 Financial Instruments: Presentation | Amendments to application guidance on the offsetting of financial assets and financial liabilities and the related net credit exposure. | 1 January 2014 |
| IAS 38 Intangible Assets | Revaluation method: proportionate restatement of accumulated amortisation of an intangible asset. | 1 July 2014 |
| IAS 38 Intangible Assets | Amendments regarding the clarification of acceptable methods of depreciation and amortisation. | 1 January 2016 |
| IAS 39 Financial instruments: Recognition and Measurement | Amendments for novation of derivatives and the continuation of hedge accounting. | 1 January 2014 |
| IAS 40 Investment Property | Interrelationship between IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property. | 1 July 2014 |
| IFRIC 21 Levies | Interpretation on the accounting for levies imposed by governments | 1 January 2014 |
The new standards and amendments to standards in issue have not yet been adopted and are not yet effective. All standards are effective for annual periods beginning on or after the stated effective date.
Pronouncement |
Title |
Effective date |
|---|---|---|
| IFRS 1 First-time Adoption of International Financial Reporting Standards | Consequential amendment to IFRS 7 Financial Instruments Disclosures: Servicing contracts disclosures and offsetting of financial assets and liabilities disclosures in condensed interim financial statements. | 1 January 2016 |
| IFRS 5 Non-current Assets Held for Sale and Discontinued Operations | Amendment to the accounting treatment of changes to a plan of sale or to a plan of distribution to owners where an entity reclassifies an asset or disposal group from held for sale to held for distribution or vice versa. | 1 January 2016 |
| IFRS 7 Financial Instruments Disclosures | Amendments requiring disclosures about the initial application of IFRS 9. | 1 January 2018* |
| IFRS 7 Financial Instruments Disclosures | Additional hedge accounting disclosures resulting from the introduction of a hedge accounting chapter in IFRS 9. | 1 January 2018* |
| IFRS 7 Financial Instruments Disclosures | Servicing contracts disclosures: Application guidance to clarify whether a servicing contract gives rise to continuing involvement in a transferred asset for the purposes determining the transfer disclosure requirements. Offsetting of financial assets and liabilities disclosures’ applicability to condensed interim financial statements clarifies the applicability of offsetting amendments to IFRS 7 disclosures in condensed interim financial statements. | 1 January 2016 |
| IFRS 9 Financial Instruments | Classification and measurement of financial assets and financial liabilities and derecognition requirements | 1 January 2018 |
| IFRS 10 Consolidated Financial Statements | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture: the amendment of the accounting for a split of gains or losses on the loss of control between: (i) the recognition of gains or losses in profit or loss of a parent company; and (ii) the elimination against the carrying amounts of investments in the existing associate/joint venture and former subsidiary when a subsidiary is sold or its assets are contributed (loss of control) to an entity’s associate or joint venture. | 1 January 2016 |
| IFRS 13 Fair Value Measurement | Amendment of scope exclusion in IFRS 13.52 to include all contracts accounted for within the scope of IAS 39 and IFRS 9, regardless of whether they meet the definition of financial asset or financial liability as defined in IAS 32. | 1 July 2014 |
| IFRS 14 Regulatory Deferral Accounts | The new standard describes the financial reporting requirements for ‘regulatory deferral account balances’ that arise when an entity provides goods or services to customers at a price or rate that is subject to rate regulation. | 1 January 2016 |
| IFRS 15 Revenue from contracts with customers | Replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations on revenue recognition (i.e. IFRIC 13, 15, 18 and SIC 31). Requirements for recognising revenue on all contracts with customers except those within the scope of standards on leases, insurance contracts and financial instruments. The impact is still being assessed | 1 January 2017 |
| IAS 19 Employee Benefits | Defined Benefit Plans: Employee Contributions. The amendment clarifies the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. | 1 July 2014 |
| IAS 19 Employee Benefits | Discount rate: requirement to use the market yields on government bonds denominated in the currency of high quality corporate bonds in cases where there is no deep market for such bonds for the purpose of discounting post-employment benefit obligations. | 1 January 2016 |
| IAS 24 Related Party Disclosures | Amendment requires disclosure of key management personnel services, provided to the reporting entity or to the parent of the reporting entity, as a related party in the reporting entity. | 1 July 2014 |
| IAS 28 Investment in Associates or Joint Ventures | See IFRS 10 Consolidated Financial Statements | 1 January 2016 |
| IAS 34 Interim Financial Reporting | Requirement for IAS 34.16A Other Disclosures to be given either in the interim financial statements or incorporated by a cross-reference from the interim financial statements to some other statement and to be available to users on the same terms and at the same time as the interim financial statements for the interim financial report to be complete. | 1 January 2016 |
| IAS 39 Financial Instruments: Recognition and Measurement | Amendments to permit an entity to elect to continue to apply the hedge accounting requirements in IAS 39 for a fair value hedge of the interest rate exposure of a portion of a portfolio of financial assets or financial liabilities when IFRS 9 is applied, and to extend the fair value option to certain contracts that meet the ‘own use’ scope exception. | 1 January 2018* |
| * The standards apply when IFRS 9 is applied. | ||
for the six months ended 30 September 2013
As previously |
Reclassification |
IFRS 10: |
Other |
Restated |
|
|---|---|---|---|---|---|
| Continuing operations | |||||
| Total revenue | 16 482 | (176) | (31) | 49 | 16 324 |
| Operating revenue | 16 192 | (169) | – | (34) | 15 989 |
| Payments to other operators | 2 026 | (98) | – | – | 1 928 |
| Cost of sales | 1 001 | (27) | – | – | 974 |
| Net operating revenue | 13 165 | (44) | – | – | 13 087 |
| Other income | 173 | (7) | (20) | 83 | 229 |
| Operating expenses | 10 323 | (62) | (3) | 49 | 10 307 |
| Employee expenses | 2 814 | (37) | – | 37 | 2 814 |
| Selling, general and administrative expenses | 2 357 | (15) | – | 49 | 2 391 |
| Service fees | 1 557 | (4) | (3) | (37) | 1 513 |
| Operating leases | 504 | (6) | – | – | 498 |
| Depreciation, amortisation, impairment, write-offs and losses | 3 091 | – | – | – | 3 091 |
| Operating profit | 3 015 | 11 | (17) | – | 3 009 |
| Investment income | 123 | – | (11) | – | 112 |
| Finance charges and fair value movements | 10 | 7 | 28 | – | 45 |
| Interest | (269) | – | – | – | (269) |
| Foreign exchange gains and fair value movements | 279 | 7 | 28 | – | 314 |
| Profit before taxation | 3 148 | 18 | – | – | 3 166 |
| Taxation | 202 | – | – | – | 202 |
| Profit from continuing operations | 2 946 | 18 | – | – | 2 964 |
| Loss from discontinuing operations | – | (18) | – | – | (18) |
| Profit for the period | 2 946 | – | – | – | 2 946 |
| * The restatements is due to the sale of the iWayAfrica group. | |||||
| ** The restatement is due to the change in accounting policy related to the Cell Captive consolidation. | |||||
| *** Reclasification of operating revenue, other income, employee expenses, selling general and administrative expenses and service fees. Refer to notes 4, 5.3, 5.4 and 5.5 for more detail. At 31 March 2014 R83 million was reclassified from operating revenue to other income | |||||