The group (consolidated) and the company (separate) annual financial statements as at and for the year ended 31 December 2023 have been prepared under the supervision of Mr PA Koppeschaar CA(SA), SAICA registration number: 00038621. The principal accounting policies of Exxaro Resources Limited (the company) and its entities (the group) as well as the disclosures made in these annual financial statements comply with International Financial Reporting Standards (IFRS® Accounting Standards) (as issued by the International Accounting Standards Board (IASB®)) and IFRIC® interpretations, effective for the financial year, as well as the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee), the Financial Pronouncements (as issued by the Financial Reporting Standards Council), the Companies Act (applicable to companies reporting under IFRS Accounting Standards) and the Listings Requirements.
The annual financial statements are prepared on the historical cost basis, except for the revaluation to fair value of financial instruments, share-based payments and biological assets. The annual financial statements are prepared on the going-concern basis.
The annual financial statements are presented in South African rand, which is the company's functional and presentation currency. However, the group measures the transactions of each of its material operations using the functional currency determined for that specific entity, which, in most instances, is the currency of the primary economic environment in which the operation conducts its business.
Management considers key financial metrics and loan covenant compliance in its approved medium-term budgets, together with its existing term facilities, to conclude that the going concern assumption used in compiling the annual financial statements is relevant.
The accounting policies applied for 2023 are consistent with those applied in 2022, except for the adoption of new or amended standards as set out below.
The group annual financial statements present the consolidated financial position and changes therein, operating results and cash flow information of the company and its subsidiaries as those of a single entity.
The preparation of financial statements in conformity with IFRS Accounting Standards requires management to exercise its judgement in the process of applying the accounting policies. Such judgements, apart from those involving estimates, have been made by management. Details of these judgements have been included within the relevant chapters. Additionally, the use of certain critical accounting estimates is required. Key assumptions concerning the future, and other key sources of estimation uncertainty at the financial year end, may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year if the assumption or estimation changes significantly. Details of key assumptions and key sources of estimation uncertainty have been included within the relevant chapters.
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