2008 Annual report - Sappi

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Notes to the group annual financial statements // continued for the year ended September 2008 2. Accounting policies (continued) Amendment to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures – Reclassification of Financial Instruments This amendment permits an entity to reclassify some financial instruments out of the fair value through profit or loss category in particular circumstances. The amendment also permits an entity to transfer from the available-for-sale category to the loans and receivables category a financial asset that would have met the definition of loans and receivables, if the entity has the intention and ability to hold that financial asset for the foreseeable future. The implementation of this amendment did not have a material impact on the group’s reported results or financial position. 2.5 Potential impact of future changes in accounting policies The following standards, interpretations and significant amend - ments or revisions to standards which have been issued but which are not yet effective and which are applicable to Sappi, have not been applied in these financial statements: Revised IAS 1 – Presentation of Financial Statements The main changes from the previous standard require that an entity must present: • all non-owner changes in equity (that is, ’comprehensive income’) – either in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income); • a statement of financial position (balance sheet) as at the beginning of the earliest comparative period in a complete set of financial statements when the entity applies an accounting policy; retrospectively or makes a retrospective restatement; • income tax relating to each component of other comprehensive income; and • reclassification adjustments relating to components of other comprehensive income. This revised standard is effective for our September 2010 year end. IFRS 8 – Operating Segments This standard introduces the concept of an operating segment; it expands the identification criteria for segments of an entity and the measurement of segment results. This statement will allow an entity to align its operating segment reporting with the internal identification and reporting structure. The standard first becomes applicable to the group for the financial year ending September 2010, and we are currently assessing the impact of this on the group. IFRIC 12 – Service Concession Arrangements The interpretation serves to clarify the treatment of arrangements whereby a government or other body grants contracts for the supply of public services – such as roads, energy distribution, prisons or hospitals – to private operators. The objective of this IFRIC is to clarify aspects of accounting for service concession arrangements. The interpretation first becomes applicable to the group for the financial year ending September 2009, and we are currently assessing the impact of this on the group. IFRIC 13 – Customer Loyalty Programmes This interpretation addresses accounting by entities that grant loyalty awards to customers who buy other goods or services. The interpretation deals with the accounting treatment of the obligations to provide free or discounted goods or services granted under such a programme. The interpretation first becomes applicable to the group for the financial year ending September 2009, and we are currently assessing the impact of this on the group. IFRIC 15 – Agreements for the Construction of Real Estate The Interpretation provides guidance on when and how to apply IAS 11 Construction Contracts and IAS 18 Revenue to real estate construction agreements before construction is complete. The interpretation first becomes applicable to the group for the financial year ending September 2010, and we are currently assessing the impact of this on the group. IFRIC 16 – Hedges of a Net Investment in a Foreign Operation The Interpretation clarifies the accounting for net investment hedges and it provides guidance on the following issues: • which foreign currency risks qualify for hedge accounting, and what amount can be designated; 98
sappi // • where within the group the hedging instrument can be held; and • what amount should be reclassified to profit or loss when the foreign operation is disposed of. The interpretation first becomes applicable to the group for the financial year ending September 2009, and we are currently assessing the impact of this on the group. Revision to IFRS 3: Business Combinations The standard introduces a comprehensive revision of some of the aspects of business combination accounting by restricting options or allowable methods. The revised standard aims to achieve greater consistency in business combination accounting among entities applying IFRS. hedged item, and would cause ineffectiveness if the entire option is designated as a hedging instrument; and • a risk-free or benchmark interest rate portion of the fair value of a fixed rate financial instrument will normally be separately identifiable and reliably measurable, and hence may be hedged. The amendment first becomes applicable to the group for the financial year ending September 2010, and we are currently assessing the impact of this on the group. Various improvements to IFRSs A number of standards have been amended as part of the IASB’s improvement project. We are assessing the impact of these amendments on the group. The revised standard will only be applicable to the group for the financial year ending September 2010, and we are currently assessing the impact of this on the group. Amendments to IAS 27 Consolidated and Separate Financial Statements, IAS 28 Investments in Associates and IAS 31 Investments in Joint Ventures As part of the IASB’s revision to IFRS 3 Business Combinations, IAS 27, IAS 28 and IAS 31 were also amended. The amendments first become applicable to the group for the financial year ending September 2010, and we are currently assessing the impact of these on the group. Amendment to IFRS 2 Vesting Conditions and Cancellations The amendment clarifies the definition of vesting conditions and provides guidance on the accounting treatment of cancellations by other parties. The amendment will only be applicable to the group for the financial year ending September 2010, and we are currently assessing the impact of this on the group. Amendment to IAS 39 Financial Instruments: Recognition and Measurement on Eligible Hedged Items The amendment clarifies that: • inflation can only be designated as a hedged risk or portion, if it is a contractually-specified portion of the cash flows of a recognised financial instrument; • the time value of a purchased option used as a hedging instrument is not a risk or a portion of a risk present in a // 2008 Annual report 99
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annual report 2008
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sappi Our report in overview In pro
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sappi Our performance The group’s
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sappi Target Target Net debt to tot
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sappi Our score on the DJSI World D
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sappi People continued Our commitme
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sappi Our business structure Johann
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sappi Pulp Paper pulp is the main r
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sappi Ideas that matter Print remai
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sappi Objectives for 2009 Meaningf
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sappi Deenadayalen (Len) Konar // (
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sappi Divisional and corporate mana
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sappi We are of the opinion that su
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sappi input cost reductions across
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sappi Q // Will the integration of
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sappi Sappi Fine Paper Mills/ Capac
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sappi deliver excellent service and
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sappi Transaction funding overview
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sappi Sappi Forest Products Mills/
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sappi Demand and prices in the inte
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Risk management Our top risks These
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Risk management // continued Risk m
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Chief financial officer’s report
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Chief financial officer’s report
Page 50 and 51: Chief financial officer’s report
Page 60 and 61: Five year review Not restated for I
Page 62 and 63: Share statistics at September 2008
Page 64 and 65: Corporate governance We are committ
Page 66 and 67: Corporate governance // continued E
Page 68 and 69: Corporate governance // continued A
Page 70 and 71: Corporate governance // continued r
Page 72 and 73: Compensation report Compensation co
Page 74 and 75: Annual financial statements for the
Page 76 and 77: Directors’ approval The directors
Page 78 and 79: Directors’ report // continued fo
Page 80 and 81: Group income statement for the year
Page 82 and 83: Group cash flow statement for the y
Page 84 and 85: Group income statement in Rands con
Page 86 and 87: Group cash flow statement in Rands
Page 88 and 89: Notes to the group annual financial
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Notes to the group annual financial
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Condensed Sappi Limited company inc
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Condensed Sappi Limited company cas
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Notes to the condensed Sappi Limite
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Glossary General definitions bleach
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Glossary // continued Non-GAAP fina
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Notice to shareholders // continued
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Notice to shareholders // continued
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Shareholder’s diary Annual genera
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Notes to proxy The form of proxy mu
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Notes 1. To be effective, this form
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Notes 1. To be effective, this form
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www.sappi.com
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2008 Annual report - Sappi

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