Table of contents

Background and purpose of the Consolidated
Combined Financial Statements
Presentation of consolidated
combined financial statements
MyBucks is a FinTech company that embraces technology
as a means to provide financial products and services
to our customers. The group’s current primary activities
are micro-lending. The group provides mid-term and
long-term (6-60 month) loans with deduction at source
collection mechanisms through payroll deduction
agreements with employers. The group provides shortterm
loans (shorter than six months) on the back of direct
debit collection mechanisms.
MyBucks S.à r.l. was incorporated as a holding company
with interests in the financial services industry on 7
August 2015 in Luxembourg and obtained its certificate
to commence business B199543 on the same day. The
company operates in South Africa, Sub-Saharan Africa and
Europe having its registered office at 14, Rue Steichen,
L-2540, Luxembourg.
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On 14 December 2015, GetBucks Proprietary Limited
(South Africa) and GetBucks Limited (Mauritius) were
contributed into MyBucks S.à r.l. by the existing
shareholders of the two companies. The ultimate
beneficial owners of both companies and controlling
rights have not changed.
The Company changed its legal form from a Société
à responsabilité limitée into a Société Anonyme. It was
resolved by the Shareholders’ Meeting on 12 January
2016.
MyBucks became the first African focused FinTech
company to list on the Frankfurt Stock Exchange Entry
Standard. The offer was fully subscribed, offering €15.5
million including over allotment based on the issue price
of €13.50 per share. The first trading date of the new
shares on the Entry Standard of the Frankfurt Stock
Exchange Entry Standard on 23 June 2016.
Following the issuance of a licence by the Reserve Bank
of Zimbabwe in January 2016, the company's subsidiary
in Zimbabwe changed from a lending only Microfinance
Institution to a Deposit Taking Microfinance Institution.
On 15 January 2016, GetBucks Zimbabwe raised a total of
€2,871,360 ($3,200,000) by way of an Initial Public Offering
(IPO) through the subscription of 93,567,251 ordinary
shares. The group maintained control over GetBucks
Zimbabwe.
Group's financial year starts on 1 July and ends on 30 June
of each year.
Basis of presentation
The combined consolidated financial statements
have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), as adopted by
the European Union ("EU"). The combined consolidated
financial statements have been prepared on the historical
cost basis, except when fair value or another specific
measurement basis are required by specific standard,
and incorporate the principal accounting policies set out
below. They are presented in Euros.
Prior to 14 December 2015, the Profit or Loss and
Comprehensive Income, Cash Flows and Financial Position
of the Predecessor Companies were presented on a
combined basis as they were not consolidated into any
common parent or holding company but were all under the
common control. The combined statement of shareholders’
equity prior to group restructuring represents the sum
of the underlying invested equity in the Predecessor
Companies listed above and does not represent shares in a
single stand-alone basis.
In the absence of a specific IFRS literature dealing with
Consolidated Combined Financial Statements, the Group
defined the principles and conventions for combination
presented hereunder.
All intra-group balances within the group, income and
expenses, unrealised gains and losses resulting from
transactions between the group entities are eliminated in
the combined consolidated financial statements.
As stated above, businesses have been accounted for as a
business combination under common control and
therefore no assets or liabilities have been restated to their
fair values. Instead, predecessor carrying value has been
applied. No new goodwill arises in predecessor accounting.
The difference between the consideration given and the
aggregate book value of the assets and liabilities (as of the
date of the transaction) of the acquired entity are included
in equity in a separate reserve.
1. Accounting Policies
1.1 Consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities)
over which the company has control. Subsidiaries are fully
consolidated from the date on which control is transferred
to the group. They are deconsolidated from the date that
control ceases.
Control exists when an investor is exposed or has rights
to variable returns from its involvement with the investee
and has the ability to affect these returns through its
power over the investee. Where such exposure and power
exists over an investee, the investee is accounted for as a
subsidiary.
Transactions with non-controlling interests that do not
result in loss of control are accounted for as equity
transactions – that is, as transactions with the owners in
their capacity as owners. The difference between fair value
of any consideration paid and the relevant share acquired
of the carrying value of net assets of the subsidiary is
recorded in equity. Gains or losses on disposals to
non-controlling interests are also recorded in equity.
Inter-company transactions, balances, income and
expenses on transactions between group companies are
eliminated. Profits and losses resulting from intercompany
transactions that are recognised in assets are also
eliminated. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the
policies adopted by the group.
Business combination
Except for the restructuring under common control, in the
case of business combinations, the group applies the
acquisition method to account for business combinations.
The consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred, the
liabilities incurred to the former owners of the acquiree and
the equity interests issued by the group. The consideration
transferred includes the fair value of any asset or liability
resulting from a contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date. The group
recognises any non-controlling interest in the acquiree on
an acquisition-by acquisition basis, either at fair value or at
the non-controlling interest’s proportionate share of the
recognised amounts of acquiree’s identifiable net assets.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer’s previously
held equity interest in the acquiree is re-measured to fair
value at the acquisition date; any gains or losses arising
from such re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the
group is recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent
consideration that is deemed to be an asset or liability
is recognised in accordance with IAS 39 in profit or loss.
Contingent consideration that is classified as equity is
not re-measured, and its subsequent settlement is
accounted for within equity.
The excess of the consideration transferred the amount
of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest
in the acquiree over the fair value of the identifiable net
assets acquired is recorded as goodwill. If the total of
consideration transferred, non-controlling interest
recognised and previously held interest measured is less
than the fair value of the net assets of the subsidiary
acquired in the case of a bargain purchase, the difference
is recognised directly in the combined consolidated
Statement of Profit or Loss and Comprehensive Income.
Disposal of subsidiaries
When the group ceases to have control any retained
interest in the entity is remeasured to its fair value at
the date when control is lost, with the change in carrying
amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently
accounting for the retained interest as an associate,
joint venture or financial asset. In addition, any amounts
previously recognised in other comprehensive income in
respect of that entity are accounted for as if the group had
directly disposed of the related assets or liabilities. This
may mean that amounts previously recognised in other
comprehensive income are reclassified to profit or loss.
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MyBucks Annual Report 2016 80
81 MyBucks Annual Report 2016