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SELECTED EXPLANATORY NOTESto the abridged group annual financial statements1 BASIS OF PREPARATIONThe information in these abridged annual financial statements has been extracted from the Group’s2012 annual financial statements, which have been prepared in compliance with International FinancialReporting Standards (IFRS), the AC 500 Standards as issued by the Accounting Practices Board, IAS 34:Interim Financial Reporting, the South African Companies Act (71 of 2008, as amended) and the ListingsRequirements of the JSE.The Group’s 2012 annual financial statements and these abridged annual financial statements have beenaudited by the Group’s external auditors, Ernst & Young Inc., and their unqualified audit opinion on boththese financial statements are available for inspection at the company’s registered office.The Group’s 2012 annual financial statements have been prepared in accordance with the going concernand historical cost bases except where otherwise indicated in the Group’s accounting policies. Theaccounting policies have been applied uniformly throughout the Group and are consistent with thoseapplied in the prior period, except as mentioned in note 2. The presentation currency of the financialstatements is the South African Rand (R) and all amounts are rounded to the nearest million.2 ACCOUNTING POLICIESThe accounting policies and methods of computation applied in the preparation of this report areconsistent with those applied in the preparation of the Group’s annual financial statements for the periodended 26 June 2011, except for the adoption of certain of the improvements to IFRS issued in May 2010.The adoption of these improvements has had the following consequences for the accounting policies,financial position or performance of the Group:Improvements to IFRS (issued May 2010)In May 2010, the International Accounting Standards Board issued an omnibus of amendments to itsstandards, affecting six standards and one interpretation. The amendments that are effective for periodsbeginning on or after 1 January 2011 have been adopted by the Group in the current reporting period, tothe extent that they are applicable to its activities.In some instances, the adoption of these amendments has resulted in minor revisions to accountingpolicies and disclosures, but has not had any impact on the financial position or performance of the Group.66Truworths International Limited Integrated Annual Report 2012