1. |
Accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below and are consistent in all material respects with those applied during the previous year.
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| 1.1
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Basis of preparation
The consolidated financial statements are stated in rands and are prepared in accordance with and comply with International Financial Reporting Standards (IFRS), effective for the group’s financial year. The consolidated financial statements are prepared on the historical-cost basis, modified by the restatement of certain financial instruments to fair value and insurance liabilities in accordance with actuarial valuations.
Insurance
Detailed accounting policies and other disclosures, specifically covering insurance companies, are outlined in
Annexure C.
Consolidation
The consolidated financial statements incorporate the financial statements of the company and all its subsidiaries. Subsidiary undertakings, which are those companies in which the group, directly or indirectly, has an interest of more than one half of the voting rights or otherwise has power to exercise control over the operations, have been consolidated, except when the subsidiaries are held exclusively with a view to their subsequent disposal which is highly probable and are accounted for as assets held for sale. Where the group’s interest in subsidiary undertakings is less than 100%, the share attributable to outside shareholders is reflected as minority interests. The accounts of subsidiary undertakings are generally drawn up at 30 June each year. Where audited accounts are not drawn up at this date, the latest audited accounts available are used.
On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. If the cost of acquisition is below the fair values of the identifiable net assets acquired (i.e. discount on acquisition), then the difference is credited to profit and loss in the period of acquisition.
The interest of minority shareholders is stated at the minority’s proportion of the fair values of the assets and liabilities recognised. Subsequent profits are credited to minorities and any losses attributable to minorities in excess of the minority interest are allocated against the interests of the parent.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition, or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group.
All intercompany transactions, balances and unrealised surpluses and deficits have been eliminated.
Segment information
The principal segments of the group have been identified on a primary basis by business segment and on a secondary basis by significant geographical region. The basis is representative of the internal structure used for management reporting.
Segment revenue reflects both sales to external parties and intergroup transactions across segments. The segment result is presented as segment profit before exceptional items including net finance costs and income from associates. Taxation is excluded in arriving at segment results.
Segment operating assets and liabilities are only those items that can be specifically identified within a particular segment.
Foreign currencies
The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in rands, which is the functional currency of the company, and the presentation currency for the consolidated financial statements.
Income statements having a different functional currency are translated into South African currency at the weighted average exchange rates for the year and the balance sheets are translated at the exchange rates ruling on the balance sheet date.
All resulting exchange differences are classified as a foreign currency translation reserve and reflected as part of shareholders’ equity.
On disposal of foreign entities, such translation differences are recognised in the income statement as part of the gain or loss on sale.
Transactions in currencies other than rands are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses arising on translation are included in net profit or loss for the period.
In order to hedge its exposure to certain foreign exchange risks, the group enters into forward contracts (see below for details of the group’s accounting policies in respect of such derivative financial instruments).
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operation and are translated at the closing rate.
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1.2
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Investment in associates
Investments in associates are accounted for using the equity method of accounting, except when the investments are held exclusively with a view to their subsequent disposal which is highly probable and are then accounted for as assets held for sale. Associates are undertakings over which the group has the power to exercise significant influence, but which it does not control.
Equity accounting involves recognising in the income statement the group’s share of the associates’ profit or loss for the year. The group’s interest in the associate is carried in the balance sheet at an amount that reflects its share of the net assets of the associate, less any impairment in the value of the investments.
Losses of the associates in excess of the group’s interest in those associates are not recognised. Any excess of the cost of acquisition over the group’s share of the fair values of the identifiable net assets of the associate at the date of acquisition is recognised as goodwill. Any deficiency of the cost of acquisition below the group’s share of the fair values of the identifiable net assets of the associate at the date of acquisition (i.e. discount on acquisition) is credited to profit and loss in the period of acquisition.
Where a group entity transacts with an associate of the group, unrealised profits and losses are eliminated to the extent of the group’s interest in the relevant associate.
Losses may provide evidence of a potential impairment of the investment, in which case appropriate provision is made for impairment.
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1.3 |
Joint ventures
A joint venture is a contractual arrangement whereby the group and other parties undertake an economic activity which is subject to joint control.
The group’s interest in jointly controlled entities is accounted for using the equity method of accounting as described in
note 1.2 above, except when the investments are held exclusively with a view to their subsequent disposal which is highly probable and are then accounted for as assets held for sale.
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1.4
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Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value of the net identifiable assets, liabilities and contingent liabilities of a subsidiary, associate or joint venture at the date of acquisition.
Goodwill is recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment at least annually. Any impairment is recognised immediately in profit or loss and is not subsequently reversed. Goodwill is allocated to cash-generating units for the purpose of impairment testing. Cash-generating units represent the business operations from which the goodwill was originally generated.
On disposal of a subsidiary, associate or joint venture, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Goodwill written off to reserves under SA GAAP prior 26 June 2000 has not been reinstated and is not included in determining any subsequent profit or loss on disposal.
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1.5 |
Other intangible assets
Expenditure on acquired patents, trademarks, licences and computer software is capitalised and amortised using the straight-line basis over their useful lives, generally between two and eight years. Intangible assets are not revalued. The carrying amount of each intangible asset is reviewed annually and adjusted for impairment, where it is considered necessary.
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1.6 |
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss, or whether an impairment loss recognised in a previous period has reversed or decreased. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
An intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessment of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years.
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1.7
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Property, plant and equipment, leasing assets, transport fleet and vehicles for hire
Land is reflected at cost and is not depreciated. New property investments and developments are reflected at cost which includes holding and direct development costs incurred until the property is available for occupation.
Cost also includes the estimated costs of dismantling and removing the assets and where appropriate cost is split into significant components. Major improvements to leasehold properties are capitalised and written off over the period of the leases. Where land and buildings are held as portfolio properties and benefits are shared with policyholders, such property is fair valued through the income statement.
All other assets are recorded at historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated on the straight-line basis to write off the cost of each component of an asset to its residual value over its estimated useful life as follows:
| Buildings |
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20 years |
| Equipment and furniture |
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3 to 10 years |
| Motor vehicles |
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3 to 5 years |
| Transport fleet |
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3 to 12 years |
| Vehicles for hire |
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2 to 5 years |
The depreciation methods, estimated remaining useful lives and residual values are reviewed at least annually.
Where significant components of an asset have different useful lives to the asset itself, these components are depreciated over their estimated useful lives.
When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.
Where a reversal of a previously recognised impairment loss is recognised, the depreciation charge for the asset is adjusted to allocate the asset’s revised carrying amount, less residual value, on a systematic basis over its remaining useful life.
Gains and losses on disposal are determined by reference to their carrying amount.
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1.8 |
Capitalised borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalised to the cost of those assets until such time as the assets are substantially ready for their intended use or sale.
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1.9 |
Inventories
Inventories are stated at the lower of cost or net realisable value, due recognition having been made for obsolescence and redundancy. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. Cost is determined as follows:
| Vehicles and aircraft |
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Specific cost |
| Caravans, spares and accessories |
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Weighted average cost |
| Petrol, oil and merchandise |
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First in, first out |
Work in progress includes direct costs and a proportion of overheads, but excludes interest expense.
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1.10 |
Financial instruments
Financial instruments are initially measured at fair value plus transaction costs, where applicable, when the group becomes a party to the contractual provisions of the contract. Subsequent to initial recognition, these instruments are measured as set out below.
Equity and debt security instruments
Equity and debt security instruments are initially recognised at cost on trade date.
At subsequent reporting dates, debt securities that the group has the intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost, excluding those held-to-maturity debt securities designated as fair value through profit or loss at initial recognition, less any impairment losses recognised to reflect irrecoverable amounts. Premiums or discounts arising on acquisition are amortised on the yield-to-maturity basis and are included in the income statement.
Equity and debt security instruments other than held-to-maturity debt securities are classified as either fair value through profit and loss or available for sale, and are measured at subsequent reporting dates at fair value.
Where equity and debt security instruments are held for trading purposes, gains and losses arising from changes in fair value are included in the income statement for the period.
For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in the income statement for the period.
Loans receivable
Loans are recognised at the date that the amount is advanced.
At subsequent reporting dates they are measured at amortised cost, less any impairment losses recognised to reflect irrecoverable amounts.
Trade and other receivables
Trade and other receivables originated by the group are stated at nominal value as reduced by appropriate allowances for doubtful debts.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value, based on the relevant exchange rates at the balance sheet date.
Loans payable
Interest-bearing loans are initially recorded on the day that the loans are advanced at the net proceeds received.
At subsequent reporting dates, interest-bearing borrowings are measured at amortised cost. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on the accrual basis in the income statement using the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
Where interest-bearing loans have interest rate swaps changing the interest rate from fixed to variable or vice versa, they are treated as hedged items and carried at fair value. Gains and losses arising from changes in fair value are included in the income statement for the period.
Trade payables
Trade payables are stated at their nominal value.
Derivative instruments
Derivative financial instruments are initially recognised at fair value at the date the derivative contract is entered into, and subsequently measured at fair value at each balance sheet date. The group uses derivative financial instruments primarily relating to foreign currency protection and to alter interest rate profiles.
The group designates certain derivatives as hedging instruments and they are classified as:
- fair value hedge: a hedge to cover exposure to changes in fair value of recognised assets and liabilities;
- cash flow hedge: hedges a particular risk associated with a recognised asset or liability or a highly probable forecast
transaction; and
- hedges of a net investment in a foreign operation.
Foreign currency forward contracts (FECs) are used to hedge foreign currency
fluctuations relating to certain firm commitments and forecast
transactions
Interest rate swap agreements (IRS) and forward rate agreements (FRAs) can swap interest rates from either fixed to variable or from variable to fixed and are used to alter interest rate profiles.
Any gains or losses on fair value hedges are included in the income statement for the period.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows are recognised directly in equity and any ineffective portion is recognised immediately in the income statement.
If the cash flow hedge of a firm commitment or forecast transaction results in the recognition of an asset or a liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of an asset or a liability, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects the income statement.
Derivatives embedded in other financial instruments or non-derivative host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with fair value gains or losses reported in the income statement.
Fair value calculations
Investments are fair valued based on regulated exchange-quoted ruling bid prices at the close of business on the last trading day on or before the balance sheet date. Fair values for unquoted equity instruments are estimated using applicable fair value models. If a quoted bid price is not available for dated instruments, the fair value is determined using pricing models or discounted cash flow techniques. Any instrument that does not have a quoted market price in an active market and whose fair value cannot be reliably measured is stated at its cost, including transaction costs, less any provisions for impairment.
All other financial assets’ and liabilities’ fair values are calculated by present valuing the best estimate of the future cash flows using the risk-free rate of interest plus an appropriate risk premium.
The fair value for any hedged items is calculated by discounting the future cash flows. The discount factor used is arrived at by establishing the current risk free rate applicable for that item and adjusted for the credit spread over the risk free rate on issue date.
Derecognition
The group derecognises a financial asset when its contractual rights to the cash flow from the financial asset expire, or if it transfers the asset together with its contractual rights to receive the cash flows of the financial assets.
The group derecognises a financial liability when the obligation specified in the contract is discharged or cancelled or expires.
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| 1.11 |
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
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The group as lessor
Finance leases
Amounts due under finance leases are treated as instalment credit agreements.
Operating leases
Rental income is recognised in the income statement over the period of the lease term on the straight-line basis.
Assets leased out under operating leases are included under the appropriate category of asset in the balance sheet. They are depreciated over their expected useful lives on a basis consistent with similar property, plant and equipment.
The group as lessee
Finance leases
Assets held under finance leases are recognised as assets of the group at their fair value at the date of acquisition. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are charged to the income statement over the term of the relevant lease.
Operating leases
Operating lease costs are recognised in the income statement over the lease term on the straight-line basis. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
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1.12
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Share-based payments
The group operates equity-settled share-based compensation plans for senior employees and executives.
Equity-settled share-based payments are measured at fair value at the date of grant using the Black-Scholes option-pricing model. The fair value determined at the grant date of the equity-settled share-based payments is expensed on the straight-line basis over the vesting period with a corresponding entry to equity. The expense takes into account the best estimate of the number of shares that are expected to vest. Non-market conditions such as time-based vesting conditions and non-market performance conditions are included in the assumptions for the number of options that are expected to vest. At each balance sheet date, the entity revises its estimates on the number of options that are expected to vest. It recognises the impact of the revision of original estimates, if any, in the income statement, with a corresponding adjustment to equity.
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1.13 |
Retirement benefit obligations
The group operates a number of retirement schemes around the world. These schemes have been designed and are administered in accordance with the local conditions and practices in the countries concerned and include both defined contribution and defined benefit schemes with the major component being defined contribution schemes. The pension costs relating to these schemes are assessed in accordance with the advice of qualified actuaries and the defined benefit schemes are reviewed at least on a triennial basis or in accordance with local practice and regulations. In the intervening years, the actuary reviews the continuing appropriateness of the assumptions applied. The actuarial assumptions used to calculate the projected benefit obligations of the group’s defined benefit retirement schemes vary according to the economic conditions of the countries in which they operate.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in excess of the greater of the value of plan assets or 10% of the defined benefit obligation are charged or credited to income over the employees’ expected average remaining working lives.
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1.14 |
Provisions
Provisions are recognised when the group has a present legal or constructive obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made.
Leave pay provision
This is determined based on the outstanding number of days’ leave due to employees applied to the total cost of their employment.
Bonus provision
Within the group there are various formulas to calculate bonuses payable to employees. Based on this, the different operations make an estimate of the total amount due.
Warranty and after-sales services
The group sells vehicles on which it will incur warranty and after-sales costs and an estimate is made based on past experience.
Insurance claims
The group has short-term insurance, life assurance and reinsurance operations on which claims settlements are made on insurance policies. The group raises the necessary provisions based on the facts of the claims and past experience.
Other provisions
The group is involved in different industries and locations that require many different provisions. These include, amongst others, onerous contracts, decommissioning and restructuring costs and long-service payments.
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1.15 |
Taxation
The charge for current tax is based on the results for the year as adjusted for items which are non-assessable or disallowable. It is calculated using tax rates that have been substantively enacted at the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit.
In principle, deferred tax liabilities are recognised for all temporary differences arising from depreciation on property, plant and equipment, revaluations of certain non-current assets and provisions. Deferred tax assets are raised only to the extent that their recoverability is probable. Deferred tax assets relating to the carry-forward of unused tax losses are recognised to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the group is able to and intends to settle its current tax assets and liabilities on a net basis.
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1.16 |
Revenue recognition
Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer.
Where there are guaranteed buyback arrangements in terms of which significant risks and rewards of ownership have not transferred to the purchaser, the transaction is accounted for as a lease.
Revenue arising from the rendering of services is recognised on the accrual basis in accordance with the substance of the agreement.
Revenue from vehicle maintenance plans is recognised only to the extent of the value of parts and services provided, with the balance being recognised at the end of the vehicle maintenance plan.
The group reflects premium income relating to insurance business gross of reinsurance. Premiums are accounted for at the commencement of the risk. Premiums on investment contracts are excluded from the income statement.
Where the group acts as agent and is remunerated on a commission basis, the commission is included in revenue. Where the group acts as principal, the total value of business handled is included in revenue.
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1.17 |
Interest and dividend income in financial services businesses
Interest income is accrued on the time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s carrying amount.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
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1.18 |
Government grants and assistance
Government grants represent assistance by government in the form of transfers of resources in return for compliance with conditions related to operating activities. Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Government includes government agencies and similar bodies whether local, national or international.
When the conditions attaching to government grants have been complied with and they will be received, they are recognised in profit or loss on a systematic basis over the periods necessary to match them with the related costs. When they are for expenses or losses already incurred, they are recognised in profit or loss immediately. The unrecognised portion at the balance sheet date is presented as deferred income.
No value is recognised where government provides general industry assistance.
Where the government grants target-specific assets, the government grants are deducted from the cost of the asset, hence reducing its cost.
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1.19 |
Exceptional items
Exceptional items cover those amounts which are not considered to be of an operating/trading nature and generally include re-measurements due to:
- impairments of goodwill and non-current assets;
- gains and losses on the measurement to fair value less costs to sell of disposal groups constituting discontinued
operations;
- gains and losses on the measurement to fair value less costs to sell of non-current assets or disposal groups classified as
held for sale;
- recycling through profit or loss of foreign currency translation reserves upon disposal of entities whose functional
currencies are different to the group’s presentation currency;
- recycling through profit or loss of fair value gains and losses previously recognised directly in equity upon the disposal of
available-for-sale financial assets and realisation of hedges of a net investment in a foreign operation.
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1.20 |
Significant accounting judgements and estimates
The preparation of the financial statements requires the group’s
management to make judgements, estimates and assumptions that
affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues
and expenses during the reporting period. The determination of
estimates requires the exercise of judgement based on various
assumptions and other factors such as historical experience,
current and expected economic conditions, and in some cases
actuarial techniques. Actual results could differ from those
estimates.
The following accounting policies have been identified as
involving particularly complex or subjective decisions or
assessments:
Residual values and useful lives
The group depreciates its assets over their estimated useful
lives taking into account residual values, which, following the
adoption of IAS 16 – Property, plant and equipment, are
reassessed on an annual basis.
The actual lives and residual values of these assets can vary
depending on a variety of factors.
Technological innovation, product life cycles and maintenance
programmes all impact the useful lives and residual values of
the assets. Residual value assessments consider issues such as
future market conditions, the remaining life of the asset and
projected disposal values.
Insurance companies
Details of the significant accounting judgments and estimates
are given in Annexure C.
Income taxes
The group is subject to income taxes in numerous jurisdictions.
Significant judgement is required in determining the worldwide
provision for income taxes due to the complexity of legislation.
There are many transactions and calculations for which the
ultimate tax determination is uncertain during the ordinary
course of business. The group recognises liabilities for
anticipated taxes based on estimates. Where the final tax
outcome of these matters is different from the amounts that were
initially recorded, such differences will impact the income tax
and deferred tax provisions in the period in which such
determination is made.
The group recognises the net future tax benefit related to
deferred income tax assets to the extent that it is probable
that the deductible temporary differences will reverse in the
foreseeable future. Assessing the recoverability of deferred
income tax assets requires the group to make significant
estimates related to expectations of future taxable income.
Estimates of future taxable income are based on forecast cash
flows from operations and the application of existing tax laws
in each jurisdiction. To the extent that future cash flows and
taxable income differ significantly from estimates, the ability
of the group to realise the net deferred tax assets recorded at
the balance sheet date could be impacted. Additionally, future
changes in tax laws in the jurisdictions in which the group
operates could limit the ability of the group to obtain tax
deductions in future periods.
Contingent liabilities
Management applies its judgement to the fact patterns and advice
it receives from its attorney, advocates and other advisors in
assessing if an obligation is probable, more likely than not, or
remote. This judgement application is used to determine whether
the obligation is recognised as a liability or disclosed as a
contingent liability.
Revenue recognition
Revenue from vehicle maintenance plans is recognised only to the
extent of the value of parts and services provided, with the
balance recognised at the end of the plan.
Balance sheet presentation based on liquidity
Management believes that the balance sheet format based on
liquidity provides information that is reliable and is more
relevant compared to a current and non-current presentation. The
nature of the group’s operations is such that some asset
categories on the balance sheet are held as trading at the same
time they qualify as fleet assets.
Discontinued operations and non-current assets classified as held for sale
Management classifies a non-current asset (or disposal group) as
held for sale if its carrying amount will be recovered
principally through a sale transaction rather than through
continuing use.
Management classifies a component of the group as a discontinued
operation that either has been disposed of or is classified as
held for sale and:
- represents a separate major line of business or geographical area of
operations;
- is part of a single coordinated plan to dispose of a separate major line of
business or geographical area of operations; or
- is a subsidiary acquired exclusively with a view to resale as a discontinued
operation.
A non-current asset (or disposal group) is measured at the lower
of its carrying amount and fair value less costs to sell.
Provision for bad debts
Provision is made for bad debts based on management’s estimate of the
prospect of recovering the debt. Where management has determined
that a debt is no longer recoverable, the amount is written off.
Provision for inventory
Inventory is counted at least once a year and any shortages and obsolete
stock identified are written off immediately. An allowance is
made for slow moving and obsolete inventory based on historical
trends.
Asset impairments
The group periodically evaluates its assets for impairment, including
identifiable intangibles, whenever events, such as losses being
incurred, or changes in circumstances, such as changes in the
market, indicate that the carrying amount of the asset may not
be recoverable. Our judgements regarding the existence of
impairment indicators are based on market conditions and
operational performance of the different businesses. Future
events could cause management to conclude that impairment
indicators exist. In order to assess if there is any impairment,
we estimate the future cash flows expected to result from the
use of the asset(s) and its eventual disposition. Considerable
management judgement is necessary to estimate discounted cash
flows,
including appropriate bases for making judgements and estimates.
The calculation of appropriate discount rates (weighted average
cost of capital) is a sensitive input into valuations. While
every effort is made to make use of independent information and
apply consistent methodology, actual circumstances or outcomes
could vary significantly from such estimates, including changes
in the economic and business environment.
These variances could result in changes in useful lives or
impairment. These changes can have either a positive or negative
impact on our estimates of impairment and can result in
additional charges.
Lereko Mobility (Pty) Limited (Lereko)
With the unbundling of the Leasing and Capital Equipment
division to create Eqstra Holdings Limited (Eqstra) the vendor
finance receivable is now split between Imperial and Eqstra.
The amount of vendor finance recoverable by Imperial and Eqstra
will be settled by the delivery of their own shares.
On the basis that risk of recoverability will now be shared
between Imperial and Eqstra, the equity accounted treatment will
be maintained.
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2. |
Impact of new issued standards and interpretations
The following new or revised IFRS standards and IFRICs have been issued with effective dates applicable to future financial statements of the group:
IFRS 1 – First time adoption of International Financial Reporting Standards
The amendment to this IFRS will require that, when a new parent is formed in a reorganisation, the new parent must measure the cost of its investment in the previous parent at the carrying amount of its share of the equity items of the previous parent at the date of the reorganisation.
The amendments should have no significant impact on the group’s results, and they first become applicable for the financial years ending 30 June 2010.
IFRS 2 – Share based payments
The amendment to this IFRS clarifies the terms vesting conditions and cancellations, and also clarifies the treatment of group cash-settled share-based payment transactions.
The amendments should have no significant impact on the group’s results, and they first become applicable for the financial years ending 30 June 2010 and 30 June 2011.
IFRS 3 – Business combinations
There have been comprehensive revisions of this IFRS, including goodwill, non-controlling interest, pre-existing relationships and reacquired rights.
The amendment should have an impact on the group’s results, but as it only applies to business combinations concluded on or after 1 July 2009, the impact cannot be determined. The statement first becomes applicable for the financial year ending 30 June 2010.
IFRS 5 – Non-current assets held for sale and discontinued operations
There are consequential amendments to this IFRS, resulting from the annual improvement project, as well as changes to segment reporting, business combinations and distribution of non-cash assets to owners.
The amendment should have no significant impact on the group’s results, and they first become applicable for the financial years ending 30 June 2010 and 30 June 2011.
IFRS 7 – Financial instruments: disclosures
There are consequential amendments to this IFRS, resulting from the annual improvement project.
The amendments should have no significant impact on the group’s results, and they first become applicable for the financial years ending 30 June 2010.
IFRS 8 – Operating segments
This IFRS introduces the concept of an operating segment; it expands the identification criteria for segments of an entity and the measurement of segment results. This statement will allow an entity to align its operating segment reporting with the internal identification and reporting structure.
The standard first becomes applicable to the group for the financial year ending 30 June 2010, and is not expected to have any significant impact on the group.
IAS 1 – Presentation of financial statements
There have been comprehensive revisions to this IFRS, including a requirement to present comprehensive income.
The amendment should have an impact on the format and disclosure of the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 2 – Inventories
There are consequential amendments to this statement resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 7 – Statement of cash flows
There are consequential amendments to this statement resulting from IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 8 – Accounting policies, changes in accounting policies and errors
There are consequential amendments to this statement resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 10 – Events after the reporting period
There are consequential amendments to this statement resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 12 – Income taxes
There are consequential amendments to this statement resulting from IAS 1 amendments and amendments to IFRS 3 (Business combinations).
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 16 – Property, plant and equipment
There are consequential amendments to this statement resulting from IAS 1 amendments and amendments to IFRS 3 (Business combinations).
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 17 – Leases
There are consequential amendments to this statement resulting from IAS 1 amendments. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 18 – Revenue
There are consequential amendments to this statement resulting from IAS 1 amendments. IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses and IFRIC 15 (agreements for the construction of real estate) amendments relating to the recognition of revenue and the related expenses by real estate developers. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 19 – Employee benefits
There are consequential amendments to this statement resulting from IAS 1 amendments and IFRS 8 (Operating segments) amendments. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 21 – The effects of changes in foreign exchange rates
There are consequential amendments to this statement resulting from IAS 1 amendments and IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 23 – Borrowing costs
There are consequential amendments to this statement resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 24 – Related party disclosures
There are consequential amendments to this statement resulting from IAS 1 amendments.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 27 – Consolidated and separate financial statements
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations) and IFRS 8 (Operating segments) amendment. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have an impact on the group’s results, but only applies to business combinations concluded on or after 1 January 2009, and the statement first becomes applicable for the financial year ending 30 June 2010.
IAS 28 – Investments in associates
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations) and IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have an impact on the group’s results, but only applies to business combinations concluded on or after 1 January 2009, and the statement first becomes applicable for the financial year ending 30 June 2010.
IAS 31 – Investments in joint ventures
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations) and IAS
27 (Consolidated and separate financial statements) amendments relating to
changes in ownership interests in subsidiaries and other businesses. In addition
there have been consequential changes resulting from the annual improvement
project
The amendment should have an impact on the group’s results, but only applies to business combinations concluded on or after 1 January 2009, and the statement first becomes applicable for the financial year ending 30 June 2010.
IAS 32 – Financial instruments presentation
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations) and IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses. This standard has also been amended in relation to puttable financial instruments and obligations arising on liquidation. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have as impact on the format and disclosures of the group’s results and first becomes applicable for the financial year ending 30 June 2010.
IAS 33 – Earnings per share
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations), amendments to IFRS 8 (Operating segments) and IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 36 – Impairments of assets
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations), amendments to IFRS 8 (Operating segments) and IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 37 – Provisions, contingent liabilities and contingent assets
There are consequential amendments to this statement resulting from IAS 1 amendments and amendments to IFRS 3 (Business combinations).
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 38 – Intangible assets
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations) and IAS 23 (Borrowing costs). In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 39 – Financial instruments: recognition and measurement
There are consequential amendments to this statement resulting from IAS 1 amendments, amendments to IFRS 3 (Business combinations) and IAS 27 (Consolidated and separate financial statements) amendments relating to changes in ownership interests in subsidiaries and other businesses. This standard has also been amended in relation to puttable financial instruments and obligations arising on liquidation. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IAS 40 – Investment property
There are consequential amendments to this statement resulting from IAS 1 amendments. In addition there have been consequential changes resulting from the annual improvement project.
The amendment should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IFRIC 15 – Agreements for the construction of real estate
This interpretation standardises the accounting practice for the recognition of revenue by real estate developers.
The interpretation should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IFRIC 16 – Hedges of a net investment in a foreign operation
This interpretation concludes that presentation currency does not create an exposure to which an entity may apply hedge accounting. A parent may designate as hedged risk only the foreign exchange differences arising from a difference between its own functional currency and that of its foreign operation.
The interpretation should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IFRIC 17 – Distributions of non-cash assets to owners
This interpretation concludes when an entity has an obligation to recognise a dividend payable for the distribution of non-cash assets to its owners.
The interpretation should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
IFRIC 18 – Transfer of assets from customers
This interpretation concludes on the accounting for transfers of items of property, plant and equipment received from customers.
The interpretation should have no significant impact on the group’s results, and first becomes applicable for the financial year ending 30 June 2010.
During April and June 2009 amendments to various other standards were made. The group is currently in the process of assessing the impact of these amendments.
|
3. |
Restatement of comparatives
The operating profit line on the income statement has been amended to exclude the recoupments from the sale of properties. These recoupments are now shown below the operating profit line. Comparatives on the income statement and segmental income statement have been restated accordingly.
|
| |
|
|
| |
|
2008 |
| |
|
Rm |
| |
Operating profit – as previously stated |
2 992 |
| |
Less: Recoupments from sale of properties |
69 |
| |
Operating profit restated |
2 923 |
| |
|
|
|
|
|
|
| |
|
|
|
Computer |
Other |
|
| |
|
|
Goodwill |
software |
intangibles |
Total |
| |
|
|
Rm |
Rm |
Rm |
Rm |
4. |
Intangible assets |
|
|
|
|
| |
For the year ended 30 June 2009 |
|
|
|
|
| |
– Cost |
1 158 |
264 |
105 |
1 527 |
| |
– Accumulated impairment and amortisation |
399 |
189 |
38 |
626 |
| |
|
|
759 |
75 |
67 |
901 |
| |
Net book value at beginning of year |
770 |
46 |
81 |
897 |
| |
Net acquisition (disposal) of subsidiaries and businesses |
213 |
(1) |
2 |
214 |
| |
Additions |
|
63 |
6 |
69 |
| |
Proceeds on disposal |
|
(1) |
|
(1) |
| |
Impairment (costs) reversals |
(194) |
2 |
|
(192) |
| |
Amortisation |
|
(44) |
(5) |
(49) |
| |
Currency adjustments |
(30) |
(7) |
|
(37) |
| |
Reclassification |
|
17 |
(17) |
|
| |
Net book value at end of year |
759 |
75 |
67 |
901 |
| |
For the year ended 30 June 2008 |
|
|
|
|
| |
– Cost |
974 |
238 |
107 |
1 319 |
| |
– Accumulated impairment and amortisation |
204 |
192 |
26 |
422 |
| |
|
|
770 |
46 |
81 |
897 |
| |
Net book value at beginning of period |
1 130 |
28 |
80 |
1 238 |
| |
Net acquisition (disposal) of subsidiaries and businesses (including unbundling) |
36 |
(5) |
|
31 |
| |
Additions |
|
46 |
8 |
54 |
| |
Impairment costs |
(47) |
(27) |
(4) |
(47) |
| |
Amortisation |
|
|
|
(31) |
| |
Currency adjustments |
106 |
4 |
2 |
112 |
| |
Reclassified to assets held for sale |
(455) |
|
(5) |
(460) |
| |
Net book value at end of period |
770 |
46 |
81 |
897 |
| |
Goodwill impairment testing
Goodwill is allocated to cash generating units (CGUs) that are measured individually for the purposes of impairment testing.
A CGU represents the business operation from which goodwill was originally generated. The recoverable amount of a CGU is determined being the higher of value in use, or the fair value less costs to sell method.
Value in use
Value in use is calculated using discounted cash flows. Cash flow projections are based on three to five year forecast information approved by senior management. Cash flows beyond the initial period are extrapolated using average growth rates.
Discount and growth rates are used that are relevant to the particular industry and geographic location in which a CGU operates.
Fair value less costs to sell
Fair value less costs to sell is calculated with reference to publicly traded market prices.
Goodwill was tested for impairment and where the excess of the recoverable amount over the carrying value of the CGU in the group amounts is less than the goodwill, then goodwill is impaired.
CGUs that are significant in relation to the group’s total goodwill carrying amount are outlined below.
The remainder of the goodwill carrying amount is made up of numerous CGUs spanning all of the group’s segments.
|
| |
|
|
|
|
|
Growth rate |
| |
|
|
Carrying |
Basis for |
Discount rate |
used to |
| |
|
|
amount |
determining |
applied to |
extrapolate |
| |
|
|
2009 |
recoverable |
cash flow |
cash flows |
| |
Significant cash generating unit (CGU) |
Rm |
amount |
% |
% |
| |
Imperial Logistics International GmbH |
307 |
Value in use |
10,53 |
|
| |
Beekman Super Canopies (Pty) Limited |
76 |
Value in use |
10,90 |
3,3 |
| |
Rijnaarde BV |
65 |
Value in use |
11,10 |
2,0 |
| |
|
|
|
|
|
| |
|
|
|
|
2009 |
2008 |
| |
|
|
|
|
Rm |
Rm |
5. |
Investments in associates and joint ventures |
|
|
|
|
| |
Unlisted shares at cost |
|
|
770 |
565 |
| |
Share of post-acquisition reserves (net of impairments) |
|
|
1 183 |
1 126 |
| |
Goodwill written off |
|
|
(22) |
(22) |
| |
Carrying value of shares |
|
|
1 931 |
1 669 |
| |
Indebtedness by associates and joint ventures |
|
|
338 |
277 |
| |
Call option (Lereko Mobility) |
|
|
65 |
71 |
| |
Carrying value of investment in associates and joint ventures |
|
|
2 334 |
2 017 |
| |
Reclassified to associate held for sale |
|
|
(1 544) |
|
| |
|
|
|
|
790 |
2 017 |
| |
Valuation of shares |
|
|
|
|
| |
Unlisted shares at directors’ valuation |
|
|
1 931 |
1 669 |
| |
Unrecognised share of losses of associates and joint ventures exceeding the group’s interest in the associate |
|
|
|
|
| |
Current period unrecognised losses |
|
|
106 |
115 |
| |
Cumulative unrecognised losses |
|
|
221 |
115 |
| |
Details of the group’s principal associates and joint ventures are reflected in
Annexure B.
The directors’ valuation has been established by reference to the group’s share of the net assets of the associates and joint ventures.
The group’s effective share of balance sheet and income statement items in respect of associates and joint ventures is as follows:
|
| |
|
Imperial |
Other |
Joint |
Total |
Total |
| |
|
Bank |
associates |
ventures |
2009 |
2008 |
| |
|
Rm |
Rm |
Rm |
Rm |
Rm |
| |
Income statements |
|
|
|
|
|
| |
Revenue |
980 |
1 688 |
319 |
2 987 |
3 157 |
| |
Profit before net financing costs |
206 |
60 |
13 |
279 |
459 |
| |
Net finance cost |
(15) |
(56) |
(9) |
(80) |
(96) |
| |
Income from associates and joint ventures |
|
31 |
|
31 |
51 |
| |
Profit before taxation |
191 |
35 |
4 |
230 |
414 |
| |
Income tax expense |
(65) |
(57) |
(1) |
(123) |
(136) |
| |
Net profit for year |
126 |
(22) |
3 |
107 |
278 |
| |
Balance sheets |
|
|
|
|
|
| |
Total assets |
25 517 |
2 548 |
261 |
28 326 |
24 334 |
| |
Capital and reserves, including minorities |
1 544 |
268 |
50 |
1 862 |
1 687 |
| |
Interest-bearing borrowings |
23 635 |
955 |
132 |
24 722 |
21 269 |
| |
Non-interest-bearing liabilities |
338 |
1 325 |
79 |
1 742 |
1 378 |
| |
Total equity and liabilities |
25 517 |
2 548 |
261 |
28 326 |
24 334 |
| |
|
|
|
|
|
|
| |
|
Land, |
|
|
|
|
| |
|
buildings |
|
|
|
|
| |
|
and |
|
|
|
|
| |
|
leasehold |
Equipment |
|
|
|
| |
|
improve- |
and |
Motor |
|
|
| |
|
ments |
furniture |
vehicles |
Aircraft |
Total |
| |
|
Rm |
Rm |
Rm |
Rm |
Rm |
6. |
Property, plant and equipment |
|
|
|
|
|
| |
For the year ended 30 June 2009 |
|
|
|
|
|
| |
– Cost |
5 454 |
2 481 |
370 |
38 |
8 343 |
| |
– Accumulated depreciation and impairment |
653 |
1 549 |
156 |
9 |
2 367 |
| |
|
4 801 |
932 |
214 |
29 |
5 976 |
| |
Net book value at beginning of year |
4 589 |
922 |
170 |
|
5 681 |
| |
Reclassified from leasing assets |
|
|
58 |
29 |
87 |
| |
Net acquisition of subsidiaries and businesses |
64 |
38 |
5 |
|
107 |
| |
Additions |
469 |
356 |
209 |
5 |
1 039 |
| |
Proceeds on disposal |
(148) |
(43) |
(147) |
(1) |
(339) |
| |
Depreciation |
(62) |
(283) |
(77) |
(3) |
(425) |
| |
Impairment reversals |
11 |
2 |
|
|
13 |
| |
Profit on disposal |
75 |
|
|
|
75 |
| |
Currency adjustments |
(197) |
(60) |
(4) |
(1) |
(262) |
| |
Net book value at end of year |
4 801 |
932 |
214 |
29 |
5 976 |
| |
|
|
|
|
|
|
| |
|
|
Land, |
|
|
|
| |
|
|
buildings |
|
|
|
| |
|
|
and |
|
|
|
| |
|
|
leasehold |
Equipment |
|
|
| |
|
|
improve- |
and |
Motor |
|
| |
|
|
ments |
furniture |
vehicles |
Total |
| |
|
|
Rm |
Rm |
Rm |
Rm |
| |
For the period ended 30 June 2008 |
|
|
|
|
|
| |
– Cost |
|
5 180 |
2 188 |
249 |
7 617 |
| |
– Accumulated depreciation and impairment |
|
591 |
1 266 |
79 |
1 936 |
| |
|
|
4 589 |
922 |
170 |
5 681 |
| |
Net book value at beginning of period |
|
4 172 |
1 025 |
244 |
5 441 |
| |
Net disposal of subsidiaries and businesses (including unbundling) |
(465) |
(135) |
(79) |
(679) |
| |
Additions |
|
1 065 |
438 |
203 |
1 706 |
| |
Proceeds on disposal |
|
(185) |
(39) |
(75) |
(299) |
| |
Depreciation |
|
(58) |
(315) |
(74) |
(447) |
| |
Impairments |
|
(1) |
(2) |
|
(3) |
| |
Profit (loss) on disposal |
|
69 |
(2) |
3 |
70 |
| |
Currency adjustments |
|
209 |
82 |
3 |
294 |
| |
Reclassified to assets held for sale |
|
(217) |
(130) |
(55) |
(402) |
| |
Net book value at end of period |
|
4 589 |
922 |
170 |
5 681 |
| |
A schedule of land and buildings is available for inspection by members or their authorised agents at the registered office of the company.
Certain property, plant and equipment has been encumbered as security for interest-bearing borrowings (note 22).
|
| |
|
|
|
|
|
|
| |
|
|
|
|
2009 |
2008 |
| |
|
|
|
|
Rm |
Rm |
| |
The total value of property, plant and equipment held under capitalised finance leases included above |
112 |
80 |
7. |
Transport fleet |
|
|
|
|
|
| |
– Cost |
|
|
|
6 515 |
5 997 |
| |
– Accumulated depreciation and impairment |
|
|
|
3 032 |
2 532 |
| |
|
|
|
|
3 483 |
3 465 |
| |
Net book value at beginning of year |
|
|
|
3 465 |
2 789 |
| |
Net acquisition of subsidiaries and businesses |
|
|
|
201 |
257 |
| |
Additions |
|
|
|
660 |
955 |
| |
Proceeds on disposal |
|
|
|
(211) |
(246) |
| |
Depreciation |
|
|
|
(500) |
(424) |
| |
Impairment costs |
|
|
|
(7) |
|
| |
Profit on disposal |
|
|
|
11 |
6 |
| |
Currency adjustments |
|
|
|
(136) |
128 |
| |
Net book value at end of year |
|
|
|
3 483 |
3 465 |
| |
The total value of transport assets held under capitalised finance leases included above |
50 |
17 |
| |
|
|
|
|
|
|
| |
|
|
|
|
2009 |
2008 |
| |
|
|
|
|
Rm |
Rm |
8. |
Leasing assets |
|
|
|
|
|
| |
For the year ended 30 June 2009 |
|
|
|
|
|
| |
Net book value at beginning of year |
|
|
|
337 |
|
| |
Reclassified to property, plant and equipment |
|
|
|
(87) |
|
| |
Reclassified to vehicles for hire |
|
|
|
(121) |
|
| |
Reclassified to inventory |
|
|
|
(129) |
|
| |
Net book value at end of year |
|
|
|
|
|
| |
For the period ended 30 June 2008 |
|
|
|
|
|
| |
– Cost |
|
|
|
|
368 |
| |
– Accumulated depreciation and impairment |
|
|
|
|
31 |
| |
|
|
|
|
|
337 |
| |
Net book value at beginning of period |
|
|
|
|
6 990 |
| |
Net disposal of subsidiaries and businesses (including unbundling) |
(6 592) |
| |
Additions |
|
|
|
|
3 977 |
| |
Proceeds on disposal |
|
|
|
|
(1 717) |
| |
Depreciation |
|
|
|
|
(1 108) |
| |
Impairments |
|
|
|
|
(508) |
| |
Loss on disposal |
|
|
|
|
(45) |
| |
Currency adjustments |
|
|
|
|
95 |
| |
Reclassified to assets held for sale |
|
|
|
|
(755) |
| |
Net book value at end of period |
|
|
|
|
337 |
| |
|
|
|
|
|
|
9. |
Vehicles for hire |
|
|
|
|
|
| |
– Cost |
|
|
|
2 291 |
1 575 |
| |
– Accumulated depreciation and impairment |
|
|
|
638 |
289 |
| |
|
|
|
|
1 653 |
1 286 |
| |
Net book value at beginning of year |
|
|
|
1 286 |
1 012 |
| |
Reclassified from leasing assets |
|
|
|
121 |
|
| |
Net acquisition (disposal) of subsidiaries and businesses |
|
|
|
58 |
(1) |
| |
Additions |
|
|
|
1 295 |
1 276 |
| |
Disposals |
|
|
|
(757) |
(710) |
| |
Depreciation |
|
|
|
(349) |
(293) |
| |
Impairments |
|
|
|
|
(2) |
| |
Profit on disposal |
|
|
|
|
3 |
| |
Currency adjustments |
|
|
|
(1) |
1 |
| |
Net book value at end of year |
|
|
|
1 653 |
1 286 |
| |
Certain vehicles for hire have been encumbered as security for interest-bearing borrowings (note 22). |
| |
|
|
|
|
|
|
10. |
Deferred taxation |
|
|
|
|
|
| |
Movement of deferred tax (assets) and liabilities |
|
|
|
|
|
| |
Balance at beginning of year |
|
|
|
(88) |
746 |
| |
Transferred to discontinued operations |
|
|
|
|
(271) |
| |
Transferred through the income statement |
|
|
|
17 |
(246) |
| |
Tax release on sale of Eqstra Holdings Limited shares in equity |
20 |
|
| |
Under provisions in prior years |
|
|
|
8 |
10 |
| |
Tax rate adjustment |
|
|
|
|
(11) |
| |
Capital gains |
|
|
|
|
27 |
| |
Arising on acquisitions and disposals (2008: including unbundling) |
|
|
|
49 |
(334) |
| |
Currency adjustments |
|
|
|
11 |
(15) |
| |
Reclassified (from) to assets held for sale |
|
|
|
(10) |
6 |
| |
Balance at end of year |
|
|
|
7 |
(88) |
| |
Analysis of deferred tax (assets) and liabilities |
|
|
|
|
|
| |
– Property, plant and equipment |
|
|
|
75 |
38 |
| |
– Transport fleet |
|
|
|
508 |
420 |
| |
– Leasing assets |
|
|
|
|
(21) |
| |
– Vehicles for hire |
|
|
|
58 |
50 |
| |
– Inventories |
|
|
|
(65) |
(60) |
| |
– Taxation losses |
|
|
|
(229) |
(109) |
| |
– Provisions |
|
|
|
(279) |
(251) |
| |
– Capital gains |
|
|
|
138 |
109 |
| |
– Other |
|
|
|
(199) |
(264) |
| |
|
|
|
|
7 |
(88) |
| |
Deferred tax comprises |
|
|
|
|
|
| |
– Assets |
|
|
|
(645) |
(637) |
| |
– Liabilities |
|
|
|
652 |
549 |
| |
|
|
|
|
7 |
(88) |
| |
Unused tax losses available for offset against future profits |
|
|
|
(1 417) |
(857) |
| |
Deferred tax asset recognised in respect of such losses |
|
|
|
818 |
389 |
| |
Remaining tax losses not recognised as deferred tax assets due to unpredictability of future profit streams |
(599) |
(468) |
