Shareholder leaflet - Exxaro

More documents

Recommendations

Info

NOTES TO THE GROUP FINANCIAL RESULTS (REVIEWED) (continued) for the year ended 31 December IFRS 10 Consolidated Financial Statements IFRS 10 was issued in May 2011 (and subsequently amended) and replaces all the guidance on control and consolidation in IAS 27 Consolidated and Separate Financial Statements, and SIC-12 Consolidation – Special Purpose Entities. Under IFRS 10, subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the group has power over an entity, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect these returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The group has applied IFRS 10 retrospectively in accordance with the transition provisions of IFRS 10. IFRS 11 Joint Arrangements IFRS 11 was issued in May 2011 (and subsequently amended) and supersedes IAS 31 Interests in Joint Ventures and SIC-13 Jointly Controlled Entities – Non-monetary Contributions by Ventures. On transition, adjustments in accordance with the transition provisions of the standard are recorded at the beginning of the earliest period presented. Before 1 January 2012, the group’s interest in its jointly controlled entities was accounted for using the proportional consolidation method. The investments affected by the early adoption of this IFRS are Mafube Coal Mining Proprietary Limited and South Dunes Coal Terminal Company Proprietary Limited. Changes in accounting policy The group early adopted IFRS 11 Joint Arrangements, on 1 January 2012. This resulted in the group changing its accounting policy for its interests in the jointly controlled entities. Under IFRS 11, investments in joint arrangements are classified either as joint operations or joint ventures, depending on the contractual rights and obligations each investor has rather than just the legal structure of the joint arrangement. Under IFRS 11, the above-mentioned jointly controlled arrangements have been assessed and classified to be joint ventures. Refer to note 3 for further details. In respect of its interest in the joint operation, the group recognises its share of assets, liabilities, revenues and expenses. The group accounts for the assets, liabilities, revenues and expenses in accordance with the IFRS applicable to the particular assets, liabilities, revenues and expenses. The financial effects of the change in accounting policies at 1 January 2011 and 31 December 2011 are shown in note 3 below. 3. Early adoption of IFRS 11 Joint arrangements The group had several interests in joint arrangements established as limited liability companies. Under IAS 31, these were assessed as jointly controlled entities and were proportionately consolidated in terms of IAS 31. The group has reassessed the classification of its joint arrangements under IFRS 11. Mafube Coal Proprietary Limited – joint venture with Anglo Operations Limited South Dunes Coal Terminal Company Proprietary Limited – joint venture with Eskom Enterprises Proprietary Limited and Golang Coal Proprietary Limited Moranbah joint arrangement – joint operation with Anglo American Cennergi Proprietary Limited (note 14) <strong>Exxaro</strong> shareholding interest (%) Previous treatment 50 Proportionately consolidated 33 Proportionately consolidated 50 Share of net income, assets and liabilities 50 Acquired in 2012 Revised treatment Equity accounted Equity accounted Share of net income, assets and liabilities Equity accounted 10
Impact on statement of comprehensive income Increase/(decrease) 31 December 2011 Rm Revenue (344) Operating expenses 88 Net financing cost 65 Share of income from equity accounted investments 76 Profit before tax (115) Tax expense 115 Profit after tax Impact on statement of financial position Increase/(decrease) 31 December 2011 Rm 1 January 2011 Rm Assets: – Property, plant and equipment (1 111) (1 111) – Financial assets 603 798 – Deferred tax (1) (2) – Investments in joint ventures 243 168 – Trade and other receivables (139) (247) – Cash and cash equivalents (47) (63) – Inventories (29) (40) Total (481) (497) Liabilities: – Interest-bearing borrowings (100) (140) – Non-current provisions (55) (32) – Deferred tax (143) (30) – Trade and other payables (153) (261) – Current interest-bearing borrowings (30) (28) – Post-retirement employee (3) – Current provision (3) Total (481) (497) Impact on statement of cash flows Increase/(decrease) 31 December 2011 Rm Cash flows from operating activities (269) Cash flows from investing activities 271 Cash flows from financing activities 14 Net increase in cash and cash equivalents 16 4. Restatement of comparative periods The early adoption of the above-mentioned standards has resulted in the restatement of comparative periods. Prior periods have also been represented for discontinued operations. Reviewed condensed group annual financial results and unreviewed physical information | 11
Page 1 and 2: REVIEWED CONDENSED GROUP ANNUAL FIN
Page 3 and 4: GROUP PERFORMANCE IN BRIEF Net debt
Page 5 and 6: CONDENSED GROUP STATEMENT OF COMPRE
Page 7 and 8: CONDENSED GROUP STATEMENT OF FINANC
Page 9 and 10: Retirement benefit Attributable Non
Page 11: NOTES TO THE CONDENSED GROUP ANNUAL
Page 15 and 16: Year ended 31 December 2012 Reviewe
Page 17 and 18: 9. Gains on the disposal of investm
Page 19 and 20: 13. Business combinations On 14 Feb
Page 21 and 22: Cennergi, which will be based in So
Page 23 and 24: 23. Mineral Resources and Mineral R
Page 25 and 26: as well as enhancing the effectiven
Page 27 and 28: Reviewed equity accounted income (R
Page 29 and 30: Unreviewed physical information (
Page 31 and 32: Energy Exxaro continues to explore
Page 33 and 34: ANNOUNCEMENT TO SHAREHOLDERS: SECTI
Page 36: The full report is available on www

Shareholder leaflet - Exxaro

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?