| 35. |
Changes in accounting policy and disclosures |
| 35.1 |
New standards and interpretations adopted |
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The annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board on a basis consistent with the prior year except for the adoption of the following new and amended standards and new interpretations: |
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IFRS 7 Financial Instruments: Disclosures; IAS 1 Presentation of Financial Statements (Amended) (IAS 1) |
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This Standard is effective for the group from the current year and adds new disclosures about financial instruments to those previously required by IAS 32 Financial Instruments: Disclosure and Presentation and IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions. The disclosures required have been included under note 33 as well as the other relevant notes on financial instruments. |
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Related to this, in terms of an amendment to IAS 1, disclosures about capital in the group have been included in note 33. |
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IFRIC Interpretation 13 Customer Loyalty Programmes (IFRIC 13) |
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IFRIC 13 is effective for the group from the year ending 30 September 2009 and addresses accounting by entities that grant loyalty award credits (such as ‘points’ or travel miles) to customers who buy other goods or services. The interpretation did not have a significant impact on the group and was early adopted in the current year. |
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IAS 32 Financial Instruments: Presentation (Revised) (IAS 32) and IAS 1 Presentation of Financial Statements (Amended) (IAS 1) |
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The amendments to IAS 32 and IAS 1 are effective for the group from the year ending 30 September 2010 and relate to financial instruments that are (i) puttable financial instruments, or (ii) instruments, or components of instruments, that impose on the entity an obligation to deliver to another party a pro-rata share of the net assets of the entity only on liquidation. Under the revised IAS 32, subject to specified criteria being met, these instruments will be classified as equity whereas, prior to these amendments, they would have been classified as financial liabilities. The amendments did not have a significant impact on the group and were early adopted in the current year. |
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IFRIC Interpretation 15 Agreements for the Construction of Real Estate (IFRIC 15) |
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IFRIC 15 is effective for the group from the year ending 30 September 2010 and provides guidance on how to determine whether an agreement for the construction of real estate is within the scope of IAS 11 Construction Contracts or IAS 18 Revenue and, accordingly, when revenue from the construction should be recognised. The interpretation did not have a significant impact on the group and was early adopted in the current year. |
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IAS 39 Financial Instruments: Recognition and Measurement (Amended) (IAS39) |
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The IASB recently published amendments to IAS 39, effective for the group from the year ending 30 September 2010, to clarify two hedge accounting issues relating to the treatment of inflation in a financial hedged item and a one-sided risk in a hedged item. The amendments did not have a significant impact on the group and were early adopted in the current year. |
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IFRIC 16 Hedges of a Net Investment in a Foreign Operation (IFRIC 16) |
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IFRIC 16 is effective for the group from the year ending 30 September 2009 and provides guidance on the accounting for the treatment of the hedge of a net investment in a foreign operation in an entity’s consolidated financial statements. The interpretation did not have a significant impact on the group and was early adopted in the current year. |
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| 35.2 |
Changes to comparative information |
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Comparative information has been restated for the treatment of the Car Rental Scandinavia and Coatings businesses as discontinued operations (refer note 12) as well as for the treatment of inter group interest received from Leasing operations, which from the current year has been offset against finance costs rather than as an addition to income from investments. |
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The effect of the above changes on the annual financial statements for the years ended 30 September 2007 and 2006 is as follows: |
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The reclassifications have not impacted on the balance sheet and cash flow statement. |
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| 35.3 |
New standards and interpretations not yet adopted |
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The following standards and interpretations are not yet effective and will be adopted in future years: |
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IFRS 8 Operating Segments |
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This standard is effective for the group from the year ending 30 September 2010. It replaces IAS 14 Segment Reporting and requires an entity to adopt a “management approach” to reporting on the financial performance of its operating segments. Generally, the information to be reported would be what management uses internally for evaluating segment performance and deciding how to allocate resources to operating segments. Such information may be different from what is used to prepare the income statement and balance sheet. The standard therefore requires explanations of the basis on which the segment information is prepared and reconciliations to the amounts recognised in the income statement and balance sheet. The group is in the process of evaluating the effects of this standard. |
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IAS 1 (Revised) Presentation of Financial Statements |
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This revised standard is effective for the group from the year ending 30 September 2010 and requires the preparation of a “Statement of comprehensive income” which replaces the income statement. All non-owner changes in equity (that is, “comprehensive income”) must be recognised either in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income). Comprehensive income for a period includes profit or loss for that period plus other comprehensive income recognised which includes revaluation surpluses, actuarial gains and losses, foreign currency translation reserves and hedge accounting reserves. The group is in the process of evaluating the effects of this standard. |
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IFRS 3 Business Combinations (Revised) (IFRS 3) |
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The revised IFRS 3 has been issued after completion of the International Accounting Standards Board’s second phase of its business combinations project and is now largely aligned with US accounting. Consequential amendments were also made to IAS 27 Consolidated and Separate Financial Statements, IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures. The changes mainly relate to the treatment of acquisition costs (now to be expensed), contingent considerations, goodwill where minorities are involved, step acquisitions and partial disposals. The revised standards are effective from the year ending 30 September 2010 and the group is in the process of evaluating the requirements of the amendments. |
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Annual improvements project |
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The International Accounting Standards Board recently issued Improvements to IFRSs – a collection of amendments to International Financial Reporting Standards (IFRSs). These amendments consist of various necessary, but non-urgent, amendments to IFRSs that will not be part of another major project of the Board. These amendments are effective from the year ending 30 September 2010. The group is in the process of evaluating the detailed requirements of the amendments. |
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Review of operations 
