NOTES TO THE SUMMARISED ANNUAL FINANCIAL STATEMENTS l NOTE 3
3. CHANGES IN ACCOUNTING POLICIES

The group has adopted all the new, revised or amended accounting pronouncements as issued by the IASB which became effective to the group on 1 July 2013, including some of the more significant changes as listed below:

IFRS 10 Consolidated financial statements

The objective of IFRS 10 is to provide the framework on when an entity is controlled and must be consolidated.

IFRS 11 Joint arrangements

Where joint arrangements exists, the investor is required to assess whether the joint arrangement is a joint operation or a joint venture based on the legal structure of the investee and the investor’s right to and obligation for the underlying assets and liabilities of the investee. IFRS 11 requires equity accounting for joint ventures and eliminates the proportionate consolidation option of accounting.

IFRS 12 Disclosure of interest in other entities

IFRS 12 is a disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements, associates and unconsolidated entities. In general, the disclosure requirements in IFRS 12 are more extensive.

IFRS 13 Fair value measurement

IFRS 13 improves consistency and reduces complexity by providing a single definition of fair value and a source of fair value measurement and disclosure requirements for use across all accounting standards.

IAS 19 Employee benefits

The amendments to IAS 19 require all actuarial gains and losses to be recognised immediately in other comprehensive income so that the pension asset or liability reflects the full value of the plan deficit or surplus.

The new, revised or amended standards were adopted in accordance with their transitional provisions, with the adoption of IAS 19 resulting in the only restatement of the comparative amounts as follows:

      Audited      
    Movements during 2013    
R million Effect on
1 July 2012
Remeasure-
ment
Currency
adjustment
Through profit
or loss
Cumulative
effect on
June 2013
 
FINANCIAL POSITION            
Assets            
Increase in deferred tax assets 19 58 4 (1) 80  
Total assets 19 58 4 (1) 80  
Capital and reserves            
Decrease in other reserves     (9)   (9)  
Decrease in retained earnings (40) (125)   2 (163)  
Attributable to owners of Imperial (40) (125) (9) 2 (172)  
Decrease in non-controlling interest (2) (3)     (5)  
Decrease in total equity (42) (128) (9) 2 (177)  
Liabilities            
Increase in retirement benefit obligations 61 186 13 (3) 257  
Total liabilities - increase 61 186 13 (3) 257  
Total equity and liabilities - increase 19 58 4 (1) 80  
PROFIT OR LOSS            
Decrease in net operating expenses         3  
Increase in income tax expense         (1)  
Increase in net profit for the year         2  
Earnings per share, headline earnings per share and core earnings per share            
Increase in basic (cents)         1  
Increase in diluted (cents)         1  
COMPREHENSIVE INCOME            
Increase in net profit for the year         2  
Other comprehensive income         (137)  
Items that may be reclassified subsequently to profit or loss         (9)  
Decrease in exchange gains arising on translation of foreign entities         (9)  
Items that will not be reclassified to profit or loss         (128)  
Decrease in retained income from remeasurement of retirement benefit obligations         (186)  
Increase in deferred tax assets relating to remeasurement of retirement benefit obligations         58  
Decrease in total comprehensive income for the year         (135)  
DECREASE IN TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:            
Owners of Imperial         (132)  
Non-controlling interest         (3)  
          (135)  
Circular 3/2013 – Headline earnings

The group also adopted Circular 3/2013 – Headline Earnings, as issued by the South African Institute of Chartered Accountants (SAICA).
The adoption of the new circular had no impact on the way the group calculates its headline earnings per share.