(formely M-Cell Limited) - Business Report 2003 - MTN Group

GROUP
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2003
2003 2002
Rm
Rm
8. CHANGE IN ACCOUNTING POLICY
During the year the Group changed its accounting policy with respect to
the treatment of connection incentives. In order to align itself with
international industry best practice, the Group now recognises connection
incentives as costs in the period incurred rather than capitalising connection
incentives and amortising the cost over 12 months as was previously the case.
The comparative amounts have been appropriately restated. Minority interests
were not affected by this change. The effect of the change is as follows:
(Decrease) increase in profit after tax (63) 19
(Decrease) increase in profit before tax (90) 27
Taxation 27 (8)
Decrease in opening accumulated profits (34) (53)
Gross (48) (75)
Taxation 14 22
Information
systems,
furniture Network Leasehold
and office infra- Aircraft and improve-
Buildings equipment structure vehicles ments Total
Rm Rm Rm Rm Rm Rm
9. PROPERTY, PLANT AND EQUIPMENT
COST
Balance at 31 March 2001 154 788 6 536 32 86 7 596
Reallocations — — (4) 5 (1) —
Restated balance at 31 March 2001 154 788 6 532 37 85 7 596
Additions at cost 245 336 2 720 35 20 3 356
Disposals (4) (1) (5) (6) — (16)
Net assets of subsidiary disposed — (4) — — — (4)
Acquisitions of subsidiaries — 3 — — — 3
Exchange differences 33 98 483 15 3 632
Balance at 31 March 2002 428 1 220 9 730 81 108 11 567
Additions at cost 190 316 3 301 38 74 3 919
Disposals (1) (2) (60) (4) — (67)
Finance lease 316 — — — — 316
Exchange differences (112) (154) (1 371) (23) (27) (1 687)
Balance at 31 March 2003 821 1 380 11 600 92 155 14 048
PAGE 86
MTN BUSINESS REPORT 2003