Basis of preparation
The condensed consolidated interim financial statements have been prepared in accordance with the requirements of section 8.57 of the JSE Limited Listings Requirements, the presentation and disclosure requirements of IAS 34 – Interim Financial Reporting and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council. The condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Companies Act, No 71 of 2008.
These condensed consolidated interim financial statements have been prepared in accordance with the going concern principle, under the historical cost convention, except for certain financial and equity investments which have been measured at fair value. The accounting policies and methods of computation are consistent with those applied in the annual financial statements for the year ended 31 May 2015 and with those applied in the previous condensed consolidated interim financial statements, with the exception of the standards that are effective for the first time in the current period. These have been disclosed in note 1 to the Group annual financial statements for the year ended 31 May 2015. These standards have not had a significant impact on the interim financial statements.
In addition to the standards that are issued but not yet effective that were disclosed in note 1 to the Group annual financial statement for the year ended 31 May 2015, the following standard has been issued but is not yet effective:
IFRS 16 – Leases
Lessees are required to recognise assets and liabilities arising from all leases (with limited exceptions) on the balance sheet. Lessor accounting has not substantially changed in the new standard.
The model reflects that, at the start of a lease, the lessee obtains the right to use an asset for a period of time and has an obligation to pay for that right. A lessee is not required to recognise assets and liabilities for short-term leases (less than 12 months), and leases for which the underlying asset is of low value (such as laptops and office furniture).
A lessee measures lease liabilities at the present value of future lease payments. A lessee measures lease assets, initially at the same amount as lease liabilities, and also includes costs directly related to entering into the lease. Lease assets are amortised in a similar way to other assets such as property, plant and equipment.
This standard is effective for periods beginning on or after 1 January 2019. The Group is currently considering the impact on the consolidated financial statements.
We aim to provide stakeholders with the same additional information that management uses to evaluate the performance of the Group’s operations.
In addition, the Group applies core net profit as a non-IFRS measure in evaluating the Group’s performance. This supplements the IFRS measures. Core net profit is calculated by adjusting net profit for the year with the amortisation of intangible assets that arise as a consequence of purchase price allocations completed in terms of IFRS 3(R): Business Combinations.
The results have not been reviewed or audited for the period ended 30 November 2015.