Notes to the combined and consolidated financial statements - Mondi

Notes to the combined and
consolidated financial statements continued
for the year ended 31 December 2009
1 Accounting policies (continued)
Earnings per share (EPS)
Basic EPS
Basic EPS is calculated by dividing net profit attributable to ordinary equity holders of the parent companies by the weighted
average number of ordinary Mondi Limited and Mondi plc shares in issue during the year, net of treasury shares. For this purpose,
net profit is defined as the profit after tax and special items attributable to equity holders of the parent companies.
Diluted EPS
For diluted EPS, the weighted average number of Mondi Limited and Mondi plc ordinary shares in issue, net of treasury shares,
is adjusted to assume conversion of all dilutive potential ordinary shares, such as share awards granted to employees. Potential
or contingent share issuances are treated as dilutive when their conversion to shares would decrease EPS. The effect of
anti-dilutive potential shares is excluded from the calculation of diluted EPS.
Underlying and headline EPS
Underlying EPS excludes the impact of special items and is a non-GAAP measure. It is included to provide an additional basis
on which to measure the Group’s earnings performance. The presentation of headline EPS is mandated under the JSE Listings
Requirements and is not necessarily a measure of sustainable earnings. It is calculated in accordance with Circular 3/2009,
‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants.
Segmental reporting
The Group’s operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-making body. The chief operating decision-making body, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Group’s executive committee.
New accounting policies, early adoption and future requirements
Standards and Interpretations early adopted by the Group
There were no Standards or Interpretations early adopted by the Group in the current year.
Standards, amendments to published Standards and Interpretations effective during 2009
Annual periods
beginning
Standard on or after Impact on the Group
IFRS 1 (AC 138) – First-time Adoption of 1 January 2009 No impact on the Group.
International Financial Reporting Standards
IFRS 2 (AC139) – Share-based Payment 1 January 2009 The impact on the Group is that non-market vesting
conditions, other than service and performance
conditions, which have always been included in
assumptions about the number of awards that are
expected to vest, have now been included in the
estimate of the fair value of the share awards
granted. The amendment did not have a material
impact on the Group.
IFRS 7 (AC 144) – Financial Instruments:
Disclosures
1 January 2009 No impact on the Group.
IFRS 8 (AC 145) – Operating Segments 1 January 2009 The impact of the changes is of a presentational
and disclosure nature, resulting in minor
presentation changes with the reportable segments
remaining unchanged.
94 Annual report and accounts 2009 Mondi Group