Imperial

The summarised consolidated financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and its Interpretations adopted by the International Accounting Standards Board (IASB) in issue and effective for the Group at 30 June 2015 and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and financial reporting pronouncements as issued by the Financial Reporting Standards Council. The results are presented in accordance with IAS 34 – Interim Financial Reporting and comply with the Listings Requirements of the Johannesburg Stock Exchange Limited and the Companies Act of South Africa, 2008. These summarised consolidated financial statements are an extract from the full annual financial statements.

These summarised consolidated financial statements have been prepared under the supervision of R Mumford, CA (SA) and were approved by the board of directors on 24 August 2015.

The accounting policies adopted and methods of computation used in the preparation of the summarised consolidated financial statements are in accordance with IFRS and are consistent with those of the annual financial statements for the year ended 30 June 2014 except for the change in policy as detailed below.

2.1  CHANGE IN ACCOUNTING POLICY

Vehicles held under buy-back arrangements

The vehicle importer businesses, included under Vehicle Import, Distribution and Dealerships, sell vehicles that are subject to buy-back arrangements. These vehicles are accounted for as an operating lease over the period of the buy back arrangement lasting about one year. In prior years, they have been accounted for as Inventory (IAS 2).

As these vehicles are not immediately available for sale and subject to operating leases, it is considered more appropriate to account for them as items of Property, plant and equipment (IAS 16). The vehicles are included in Vehicles for hire on the statement of financial position.

This change in accounting policy resulted in a reallocation between line items on the statement of profit or loss, the statement of financial position and on the statement of cash flows without affecting operating profit and total assets. The impact of the restatement on the comparative amounts were as follows:

2.2  RESTATEMENT OF THE SEGMENTAL INFORMATION

The 2014 segmental information has been restated to reflect the profit or loss for continuing operations only by excluding the Insurance segment, for the change in accounting policy as described in note 2.1 and for the reallocation of the UK head office out of Head-Office and Eliminations to the Vehicles Retail, Rental and After Market Parts segment.

The impact of the restatements were as follows:

2.3  NEW AND AMENDED ACCOUNTING STANDARDS THAT BECAME EFFECTIVE DURING THE YEAR

The Group applied the following amended statements during the year. None of the amendments has had a material impact on the consolidated financial statements of the Group.

IAS 16 – Property plant and equipment (amended)

IAS 39 – Financial Instruments – Recognition and Measurements (amended)

IAS 19 – Employee Benefits (amended)

IFRS 2 – Share Based Payments (amended)

The following standards will become applicable to the Group in future reporting periods:

IFRS 9 Financial Instruments (amended) – This standard will introduce new requirements for the classification and measurement of financial assets and financial liabilities and for derecognition. It also introduces a new impairment model which follows a three-stage approach based on changes in expected credit losses of a financial instrument. This standard becomes effective 1 January 2018.

IFRS 15 Revenue From Contracts With Customers establish the principles that an entity shall apply to report useful information to users of its financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. This standard was issued in May 2014 and replaces IAS 11 Construction contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue – Barter Transactions Involving Advertising Services. The standard becomes effective 1 January 2018.

The Group is in the process of assessing the impact of these standards on its consolidated financial statements.

To improve the content and format of the statement of profit or loss, certain items that are not operational in nature have been shown in total with the details given in the note 6.

10.1  FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT AMORTISED COST

The following table sets out instances where the carrying amount of financial liabilities, as recognised on the statement of financial position, differ from their fair values.

There were no material disposals during the year. For acquisitions during the year refer to business combinations on page 30.

Dividend declaration