2006 20-F - Sappi

More documents

Recommendations

Info

• The designation of financial instruments for hedge accounting • Changes to estimates, where estimates were previously determined with due consideration • Assets classified as held for sale and discontinued operations The application of the compulsory exemptions by Sappi Limited did not have a material impact on the financial position, financial results and cash flows of the group. The group did not to elect the following optional transitional provisions in terms of IFRS 1, due to the exemptions having no material impact on the group: • Compound financial instruments • Assets and liabilities of subsidiaries, associates and joint ventures • Designation of previously recognised financial instruments • Insurance contracts • Decommissioning liabilities included in the cost of property, plant and equipment • Leases • Fair value measurement of financial assets or liabilities at initial recognition The following exemptions in accordance with IFRS 1 were elected: • Business Combinations—IFRS 3 The group has elected not to retrospectively apply the requirements of IFRS 3 for Business Combinations that occurred prior to October 2004. The estimates and measurement of fair values that would have been required at prior dates of acquisition to apply IFRS 3 retrospectively to all previous business combinations are not readily available and management is of the opinion that the cost would outweigh the benefit in applying aforementioned changes retrospectively. If the group had applied the statement retrospectively it would have been required to restate the value of goodwill and assess whether any intangible assets should have been recognised. The prospective application of IFRS 3 had no impact on the prior year annual reported results due to the following: • In terms of IFRS 3 original fair values are not required to be re- measured for business combination. • Assets and liabilities acquired in business combinations are recognised and measured in the opening balance sheet in accordance with IFRS. • No adjustment to goodwill is required for recognition of intangible assets of previous business combinations. • No derecognition of intangible assets that do not satisfy the criteria for recognition under IAS 38 Intangible assets required. • There is no contingency affecting the amount of the purchase consideration for past business combinations. • The carrying amount of goodwill in the opening IFRS balance sheet is the carrying amount under SA GAAP at the date of transition to IFRS. Goodwill is no longer amortised. • Goodwill is now tested for impairment annually. 83
If the Group had applied IFRS 3 retrospectively, the carrying value of property, plant and equipment; intangible assets; financial liabilities; contingent liabilities and goodwill mayhave been different from those currently reported. • Share-based payment—IFRS 2 The group has elected the share-based payment exemption therefore IFRS 2 is only applicable to equity instruments granted after 7 November 2002 that were not vested by January 1 2005. For instruments vesting on or after 1 January 2005, Sappi has recognised a charge in the income statement and set up a separate category in shareholders’ equity for all share options and awards, based on the fair value of the awards as calculated at the grant date. The date was selected as it was permitted in terms of IFRS 2. If the group had applied the provision of IFRS 2, it would have resulted in an increased share-based payment expense in the period, for all outstanding share options awarded. If the group had applied the statement retrospectively it would have resulted in an increase of the expense recognised of US$2 million. • The Effects of Changes in Foreign Exchange Rates—IAS 21 Sappi has elected to apply the exemption in IFRS 1 which allows the cumulative translation differences of all foreign operations to be reset to zero by transfer to distributable reserve at the date of transition to IFRS which is October 2004. An amount of US$244 million was transferred from the Foreign Currency Translation Reserve to retained income on the transition to IFRS. If the group had not reset the cumulative translation difference (Foreign Currency Translation Reserves, “FCTR”) to zero, this would have resulted in a decrease in distributable reserves and an increase in the FCTR balance. Adjustments on adoption of IFRS The adoption of IFRS led to changes in the Group’s financial position, financial performance and cash flows. The significant differences between previously reported SA GAAP financial statements and IFRS are as follows: a Share-based Payment—IFRS 2 Sappi has recognised a charge of US$10 million for the year ended September 2005 in the income statement and set up a separate category in shareholders’ equity for all share options and awards, based on the fair value of the awards as calculated at the grant date. The cost of the share options and grants are reflected in the income statement over the vesting period. This IFRS change had no impact on the comparative total shareholders’ equity as a Share Based Payment Reserve (US$20 million at September 2005) is created with the equal and opposite amount included in retained earnings. b The Effects of Changes in Foreign Exchange Rates—IAS 21 Sappi has elected to apply the exemption in IFRS 1 which allows the cumulative translation differences of all foreign operations to be reset to zero at the date of transition to IFRS which is October 2004. The Foreign Currency Translation Reserve (Non-Distributable Reserve) was transferred to retained earnings. This resulted in a decrease of the Foreign currency translation reserve of US$244 million and a corresponding increase in retained earnings of US$244 million at the date of transition. This IFRS change did not impact on total shareholders’ equity. 84
Page 1 and 2:
As filed with the Securities and Ex
Page 3 and 4:
OUR USE OF TERMS AND CONVENTIONS IN
Page 5 and 6:
FORWARD-LOOKING STATEMENTS In order
Page 7 and 8:
2 Year Ended September 2006 2005 (U
Page 9 and 10:
Risk Factors In addition to other i
Page 11 and 12:
New technologies or changes in cons
Page 13 and 14:
Several customers account for a sig
Page 15 and 16:
Maintain a global presence. One of
Page 17 and 18:
Major Product Categories Descriptio
Page 19 and 20:
market share was negatively affecte
Page 21 and 22:
The chart below represents the oper
Page 23 and 24:
The following table sets forth appr
Page 25 and 26:
Paper North America’s on-line fin
Page 27 and 28:
of 860,000 metric tonnes of triple-
Page 29 and 30:
a capacity of 60,000 metric tonnes
Page 31 and 32:
customers use our products in the p
Page 33 and 34:
(1) The following table sets forth
Page 35 and 36:
The mill markets paper and excess p
Page 37 and 38: Pulp Sappi Fine Paper North America
Page 39 and 40: equired for its operations. Sappi F
Page 41 and 42: • The National Environmental Mana
Page 43 and 44: PROPERTY, PLANT AND EQUIPMENT For a
Page 45 and 46: ITEM 5. OPERATING AND FINANCIAL REV
Page 47 and 48: ) Movement in market prices for our
Page 49 and 50: The recent price history for benchm
Page 51 and 52: Demand from all of the market segme
Page 53 and 54: Raw Material and Other Input Costs
Page 55 and 56: The exchange rate impact on raw mat
Page 57 and 58: Our South African businesses have f
Page 59 and 60: • Any debtors or creditors not in
Page 61 and 62: Year Ended September 2006 Compared
Page 63 and 64: US$28 million. Decreased selling pr
Page 65 and 66: enefit of the reversal of the Usutu
Page 67 and 68: accounting mismatch, as a result of
Page 69 and 70: South African residents, who are na
Page 71 and 72: The increase of US$11 million in fi
Page 73 and 74: June 2010. The OeKB A tranche and t
Page 75 and 76: impact on liquidity varies accordin
Page 77 and 78: Contractual Obligations We have var
Page 79 and 80: mill is located in Nanchang, the ca
Page 81 and 82: product pricing, raw material costs
Page 83 and 84: flows of the related underlying exp
Page 85 and 86: increases, health care cost trends,
Page 87: alance sheet date. Risks, uncertain
Page 91 and 92: IFRS. The Group did not apply the e
Page 93 and 94: Where BEE equity credentials are ob
Page 95 and 96: Environmental Matters We operate in
Page 97 and 98: Klaas de Kluis (70) (independent).
Page 99 and 100: Mark Richard Thompson (54) BCom, BA
Page 101 and 102: Audit Committee An Audit Committee
Page 103 and 104: estructuring initiatives that occur
Page 105 and 106: Levies Act, was paid via Internal R
Page 107 and 108: Pursuant to the Companies Amendment
Page 109 and 110: on Restitution of Land Rights and a
Page 111 and 112: (“the Depositary”) with respect
Page 113 and 114: • any proposal concerning the ado
Page 115 and 116: Voting Rights Subject to any rights
Page 117 and 118: equest not less than one-twentieth
Page 119 and 120: Financial Assistance The Bill enhan
Page 121 and 122: At the Annual General Meeting of Sh
Page 123 and 124: African shareholders will be paid t
Page 125 and 126: purpose of Capital Gains Tax in Sou
Page 127 and 128: Distributions. The gross amount of
Page 129 and 130: US Federal Income Tax Consequences
Page 131 and 132: PART II ITEM 13. DEFAULTS, DIVIDEND
Page 133 and 134: the controls may become inadequate
Page 135 and 136: ITEM 16E. PURCHASES OF EQUITY SECUR
Page 137 and 138: 4.10 Credit Facility, dated May 7,
Page 139 and 140:
SAPPI Group Annual Financial Statem
Page 141 and 142:
SAPPI GROUP INCOME STATEMENT for th
Page 143 and 144:
SAPPI GROUP CASH FLOW STATEMENT for
Page 145 and 146:
1. BUSINESS SAPPI NOTES TO THE GROU
Page 147 and 148:
SAPPI NOTES TO THE GROUP ANNUAL FIN
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
4.2 Employee cost SAPPI NOTES TO TH
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
SAPPI CONDENSED COMPANY BALANCE SHE
Page 265 and 266:
SAPPI CONDENSED COMPANY STATEMENT O
Page 267 and 268:
5. OTHER INCOME 2006 2005 ZAR milli
show all

2006 20-F - Sappi

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

Delete template?

Save as template?