Full annual report - African Bank - Investoreports

annual financial statements
the expected remaining working lives of the participating members. Adjustments are made annually
through profit or loss for provisions held for members who have already retired. Actuarial gains or
losses are recognised in full in the period in which they occur.
4.27.2 Short term benefits
Short term benefits consist of salaries, compensated absences (such as paid annual and sick leave), bonuses
and non-monetary benefits such as medical aid contributions.
Short term benefit obligations are measured on an undiscounted basis and are expensed as the related service
is provided.
A liability is recognised for the amount expected to be paid under short term cash bonus plans or accumulated
leave if the group has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably.
4.28 Contingent liabilities and commitments
4.28.1 Contingent liabilities
A contingent liability is disclosed when:
– a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events that are not wholly within the control
of the group; or
– the group has a present obligation that arises from past events but is not recognised because it is not
probable that an outflow of resources will be required to settle such obligation or the amount of the
obligation cannot be measured with sufficient reliability.
4.28.2 Commitments
Items are classified as commitments where the group has committed itself at the reporting date to future
significant transactions or the acquisition of assets for material amounts.
4.29 Segmental reporting
An operating segment is a component of an entity which engages in business activities from which it earns revenues
and incurs expenses, for which separate financial information is available and whose operating results are regularly
evaluated by the chief operating decision maker in deciding how to allocate resources and assessing its performance.
The operating segments of the group are the Banking unit and Retail unit.
Transactions between segments are priced at market related rates.
4.30 Comparative figures
Where necessary, comparative figures within notes have been restated to conform to changes in presentation in the
current year.
African Bank Investments Limited | Integrated Report for the year ended 30 September 2012 253