bold spirit - ArcelorMittal South Africa

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ArcelorMittal South Africa
Annual Report 2010
Annexure 1: Equity-accounted investments continued
JOINTLY CONTROLLED ENTITIES continued
The summarised financial information in respect of the jointly controlled entities are as follows:
2010
Rm
2009
Rm
Total assets 6 028 6 065
Total liabilities 2 383 2 325
Revenue 21 461 22 017
Net profit attributable to ordinary shareholders 1 560 425
1
Indicative, amounts were translated at the average ZAR/USD exchange rate for the year and
not at the monthly exchange rate. The amounts will thus not agree.
The summarised financial information in respect of the unlisted associate
is as follows:
Total assets 214 210
Total liabilities 152 152
Revenue 377 351
Net profit/(loss) attributable to ordinary shareholders 3 5
The summarised financial information in respect of the listed associate
is as follows:
Total assets 4 892 4 567
Total liabilities 917 299
Total equity and liabilities 4 892 4 567
Revenue 700 168
Net profit attributable to ordinary shareholders (232) (153)
Critical judgement and estimates
Equity accounting in the group’s accounts of the investment in Coal of Africa Limited (Coal)
As ArcelorMittal South Africa has representation on the board of directors and exercises significant influence, equity
accounting has been applied in the consolidated accounts of the group.
Fair value of unlisted investments
In determining the fair value of the unlisted investments for impairment assessment and disclosure purposes, use was
made of net asset value, liquidation, simple earnings multiple and discounted cash flow valuation techniques.
In general, an earnings multiple of 6.5 was applied to the investments (2009: earnings multiples of 6.5 to 7 times), while
average liquidation realisation rates ranged from 90% to 100% on net asset value depending on the nature of the business
(2009: 90% to 100%). The realisation rates are based on the observable market rates for similar assets.