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FINANCIAL STATEMENTS AND NOTES 2007NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007the following principal accounting policies, which conform to South African Statements of General Accepted Accounting Practice, and in the mannerRands (R). The accounting policies are consistent with those applied in the previous year, except for certain restatements and changes in accountingpolicies.1.1 Basis of consolidationrespectively.1.2 Foreign currency transactions and balancesForeign currency transactions are recorded at the exchange rate ruling at the date of the transaction.At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated into South African Rand at exchangerates ruling at the balance sheet date. Exchange differences arising on the settlement of transactions at rates different from those at the date ofthe transaction and unrealised foreignExchange differences on unsettled foreign currency monetary assets and liabilities, are recognised in the income statement and included in income1.3 Investment in subsidiaryForeign currency transactions are recorded at the exchange rate ruling at the date of the transaction.At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated into South African Rand at exchangerates ruling at the balance sheet date. Exchange differences arising on the settlement of transactions at rates different from those at the date of thetransaction and unrealised foreign exchange differences on unsettled foreign currency monetary assets and liabilities are recognised in the income1.4 Investment in associatesstatements by using the equity method of accounting, from the effective dates of their acquisition until the effective dates of their disposal.Investments in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the group’s share of the net assetsof the associate, less any impairment in the value of individual investments. Losses of the associate in excess of the group’s investments in thosethe associate at the date of acquisition is recognised according to the group’s accounting policies on goodwill. Where a group enterprise transactsunrealised losses provide evidence of an impairment of the asset transferred.1.5 Goodwillentity at the date of acquisition. Goodwill is capitalised as an asset reviewed annually for impairment. At each balance sheet date goodwill is reviewedcarrying amount of goodwill is fully recoverable. An impairment charge is recognised to the extent that the carrying amount exceeds the recoverableamount.1.6 Intangible assetsannual report 200766