Restatement of company comparative information

The statement of comprehensive income, the statement of financial position, the statement of changes in equity and the statement of cash flows have been restated to show the impact of errors and reclassifications which have been identified.

Deferred tax asset (error)

The fair value adjustment on the contingent consideration was incorrectly included as a tax deduction in the current tax calculation for 2017 and 2016, instead of as an increase in the base cost of the investment held in ECC. The 2017 and 2016 current tax calculations resulted in a tax loss and a deferred tax asset was recognised on this tax loss. The deferred tax asset was therefore overstated as the tax loss would have been a smaller amount had the fair value adjustment been correctly accounted for. When correcting the error, no deferred tax is recognised on the difference between the carrying amount of the investment in ECC and the revised tax base as the investment will be recovered through dividends which are not taxable.

The deferred tax impact for 2017 and 2016 amounts to R102 million and R125 million, respectively. The statement of comprehensive income, statement of financial position and statement of changes in equity have been restated for this error.

Contingent consideration (reclassification)

For 2017, an amount of R74 million which relates to the settlement of contingent consideration has been reclassified from investing activities to operating activities as this relates to post-acquisition changes in fair value of the contingent consideration that has been paid, but is not recognised as an adjustment in the investment value as previously acquired. The statement of cash flows was re-presented.

Finance income and finance costs (reclassification)

Net finance income arising on indebtedness with subsidiaries amounting to R654 million has been reclassified from the income from investments in subsidiaries line item to the finance income and finance costs line items, totalling R1 197 million and R543 million, respectively. This reclassification results in a more appropriate presentation of interest income and interest expense. The statement of comprehensive income and statement of cash flows were represented.

IFRS 9 implementation

As part of the implementation of IFRS 9, a detailed analysis was performed on the classification of items in the statement of financial position. It was concluded that certain items needed to be reclassified in the prior year financial statements, as these were previously incorrectly classified. The statement of financial position and statement of cash flows have been restated and/or re-presented for the following items:

(a) Share-based payment (error)

Balances which represent group equity-settled share-based payment transactions where the company is responsible for settling the share-based payment transaction with subsidiaries employees were incorrectly recognised as part of trade and other receivables instead of investments in subsidiaries. An amount of R707 million and R617 million has been reclassified from trade and other receivables to investments in subsidiaries for 2017 and 2016, respectively.

(b) Indebtedness by subsidiaries (error)

Certain subsidiaries’ indebtedness was incorrectly set-off and presented on a net basis instead of a gross basis. An amount of R227 million for 2017 and an amount of R4 350 million for 2016 was reclassified from trade and other payables to trade and other receivables resulting in the amount receivable and amount payable being presented as part of trade and other receivables and trade and other payables respectively.

(c) Indebtedness by subsidiaries (reclassification)

Non-current interest-bearing loans to subsidiaries have been reclassified from the investment in subsidiaries line item to non-current financial assets to improve the presentation of these balances according to their nature. An amount of R4 020 million has been reclassified for 2017 and an amount of R6 019 million has been reclassified for 2016.

Current interest-bearing loans to subsidiaries have been reclassified from the trade and other receivables line item to current financial assets to improve the presentation of these balances according to their nature. An amount of R25 million has been reclassified for 2017 and an amount of R479 million has been reclassified for 2016.

(d) Other assets (reclassifications)

An amount of R2 million for 2017 was reclassified from non-current financial assets to other non-current assets so as to improve the presentation of the item according to the nature of the asset.

An amount of R18 million for 2017 and an amount of R41 million for 2016 was reclassified from trade and other receivables to other current assets so as to improve the presentation of the items (such as prepayments) according to the nature of the assets.

(e) Cash and cash equivalents (error)

A bank account and interest accrued on bank accounts were incorrectly classified as other receivables instead of cash and cash equivalents. An amount of R47 million and R44 million has been reclassified for 2017 and 2016, respectively.

(f) Interest-bearing borrowings (error)

Interest accrued on the loans and bonds was incorrectly classified as trade and other payables instead of current interest-bearing borrowings. An amount of R66 million and R69 million has been reclassified for 2017 and 2016, respectively.

(g) Other liabilities (reclassifications)

An amount of R203 million for 2017 and an amount of R185 million for 2016 was reclassified from trade and other payables to other current liabilities so as to improve the presentation of the items (such as payroll related accruals and VAT payable) according to the nature of the liabilities.

These errors had no material impact on the group.

The errors have been corrected by restating each of the impacted financial statement line items for the prior years.

Impact on the company statement of comprehensive income

Impact on the company statement of financial position

Impact on the company statement of changes in equity

Impact on the company statement of cash flows¹

¹ The statement of cash flows has been restated for the items detailed here with the exception of the deferred tax error.