Annual Report - JD Group

Notes to the Group annual financial statements continued
1. Changes in comparative figures continued
1.2 The recent release of the improvements to International Financial Reporting Standards has clarified that the International Accounting
Standard Board only requires inventory (cost of sales) and trade payables (finance costs) to be adjusted for the benefit obtained from
extended credit terms, where the terms are beyond the normal credit terms in the industry. The Group has therefore reversed the prior
year provision regarding the imputed interest cost. The impact is as follows:
Cost Finance Operating
of sales costs – net income
R m R m R m
Year ended 31 August 2003
As previously reported 2 557 210 803
Adjustment 56 (56) (56)
Restated 2 613 154 747
1.3 The opening balance for property, plant and equipment in the year ended 31 August 2003 has been restated to reflect cost and
accumulated depreciation on vehicles and forklift trucks on a gross basis. This adjustment is reflected in note 9.
1.4 The following reclassification has been made between financial assets and liabilities: Financial Financial
assets liabilities
R m R m
Year ended 31 August 2003
As previously reported 27 –
Adjustment 9 9
Restated 36 9
2004 2003
2. Revenue Rm Rm
Sale of merchandise 6 131 3 819
Finance charges earned 1 454 1 113
Financial services 1 095 761
Other services 376 273
36
9 056 5 966
3. Reconciliation of revenue to operating income
Revenue 9 056 5 966
Cost of sales 4 148 2 613
Other direct operating expenses 661 464
Administration and IT 550 363
Marketing 333 242
Occupancy 489 382
Employees 1 296 933
Transport and travel 223 183
Management fee 25 20
Amortisation – goodwill 2 5
– trademark 14 14
Loss on disposal and closure of BoConcept 50 –
Operating income 1 265 747