The summary consolidated financial statements are prepared in accordance with the requirements of the JSE Limited (JSE) for summary financial statements, and the requirements of the Companies Act applicable to summary financial statements. The JSE requires summary financial statements to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34: Interim Financial Reporting.

The accounting policies applied in the preparation of the consolidated financial statements from which the summary consolidated financial statements were derived are in terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous consolidated annual financial statements, with the exception of the implementation of IFRS 10: Consolidated Financial Statements, IFRS 11: Joint Arrangements and the amendments to IAS 19: Employee Benefits. The adoption of IFRS 10, IFRS 11 and the revised IAS 19 required a restatement of the comparative results, as more fully set out in note 11. The financial statements have been prepared under the supervision of the Chief Financial Officer, Leon Crouse CA(SA).

The summary consolidated financial statements do not contain all the information and disclosures required in the consolidated financial statements. The summary consolidated financial statements have been extracted from the audited consolidated financial statements upon which PricewaterhouseCoopers Inc. has issued an unqualified report. The audited consolidated financial statements and the unqualified audit report are available for inspection at the registered office of the Company.

2.

RECONCILIATION OF HEADLINE EARNINGS

3.

EARNINGS AND DIVIDENDS

9.

EQUITY ACCOUNTED INVESTMENTS

10.

Fair value remeasurements

The following methods and assumptions are used to determine the fair value of each class of financial instruments:

• Financial instruments available-for-sale and investment in money market funds: Fair value is based on quoted market prices or, in the case of unlisted instruments, appropriate valuation methodologies, being discounted cash flow, liquidation valuation and actual net asset value of the investment.
• Derivative instruments: The fair value of derivative instruments is determined by using mark-to-market valuations.

Financial instruments measured at fair value are disclosed by level of the following fair value hierarchy:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 –Inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following tables illustrate the fair values of financial assets and liabilities that are measured at fair value, by hierarchy level:

The following tables illustrate the reconciliation of the carrying value of level 3 assets from the beginning to the end of the year:

There were no transfers between the different levels.

11.

RESTATEMENT OF COMPARATIVE NUMBERS

Refer to “Changes in accounting policy” in the Report of the Board of Directors for further detail.

Restatement of comparative numbers for the 2013 financial year

Restatement of comparative numbers as at 1 July 2012