Afrikaans Annual Financial Statements
Naspers
 

SUMMARISED ANNUAL FINANCIAL STATEMENTS

IN THIS SECTION

BASIS OF PRESENTATION AND ACCOUNTING POLICIES

for the year ended 31 March 2014

The summarised annual financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements and the South African Companies Act No 71 of 2008. The Listings Requirements require summarised annual financial statements to be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 “Interim Financial Reporting”. The accounting policies applied in the preparation of the consolidated financial statements from which the summarised annual financial statements were derived are in terms of IFRS and are, except as noted below, also consistent with those applied in the previous annual financial statements.

The group’s reportable segments refect those components of the group that are regularly reviewed by the chief executive officer and other senior executives that make strategic decisions in accordance with IFRS 8 “Operating Segments”. The group proportionately consolidates its share of the results of its associated companies and joint ventures in the various reportable segments. This is considered to be more reflective of the economic value of these investments.

The group aggregated the previously reported “other internet” segment with the “ecommerce” segment as these segments are now considered to have similar economic characteristics and meet the aggregation criteria of IFRS 8. Comparative information has been restated accordingly.

Trading profit excludes amortisation of intangible assets (other than software), equity-settled share scheme charges, retention option expenses and other gains/ losses, but includes the finance cost on transponder leases.

Core headline earnings exclude once-off and non-operating items. We believe that it is a useful measure for shareholders of the group’s sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies.

The group has adopted all new and amended accounting pronouncements as issued by the International Accounting Standards Board (IASB), which were effective for financial years commencing on 1 April 2013. The following key new pronouncements have been adopted:

IFRS 10 CONSOLIDATED FINANCIAL STATEMENTS

IFRS 10 replaces the consolidation and control guidance previously contained in IAS 27 “Consolidated and Separate Financial Statements” and SIC-12 “Consolidation – Special Purpose Entities”. The application of IFRS 10 did not result in any changes in the consolidation status of the group’s subsidiaries and consequently no changes to the group’s consolidated financial results.

 IFRS 13 FAIR VALUE MEASUREMENT

IFRS 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRS. IFRS 13 was adopted and applied prospectively and it was assessed that the adoption did not result in any material impact on the financial results of the group.

IFRS 11 JOINT ARRANGEMENTS

IFRS 11 replaces the guidance previously contained in IAS 31 “Interests in Joint Ventures” and SIC-13 “Jointly Controlled Entities – Non-Monetary Contributions by Venturers”. Significantly, IFRS 11 requires all interests in joint ventures to be accounted for under the equity method. The group previously accounted for its interests in joint ventures by applying proportionate consolidation – a line-by-line consolidation of the group’s share of the results of the joint ventures.

The group has applied IFRS 11 on a fully retrospective basis by accounting for joint ventures in terms of the equity method from the beginning of the earliest period presented in this provisional report, 1 April 2012.

The impact of the adoption of IFRS 11 on the group’s consolidated financial results is illustrated in the annual financial statements (the application of IFRS 11 did not have a significant impact on the statement of comprehensive income).

  Year ended
31 March 2013
 
  Previously
reported
R'm
Change in
accounting
policy
R’m
Restated
R’m
 
CONSOLIDATED INCOME STATEMENT        
Revenue 50 249 (380) 49 869  
Cost of providing services and sale of goods (27 852) 176 (27 676)  
Selling, general and administration expenses (17 751) 392 (17 359)  
Other gains/(losses) – net (831) 96 (735)  
Operating profit 3 815 284 4 099  
Interest received 433 10 443  
Interest paid (1 501) 6 (1 495)  
Other finance income/(costs) – net (248) (10) (258)  
Share of equity-accounted results 9 001 (223) 8 778  
– excluding net gain on disposal of investments 6 359 (229) 6 130  
– net gain on disposal of investments 2 642 6 2 648  
Impairment of equity-accounted investments (2 057) (80) (2 137)  
Dilution losses on equity-accounted investments (96) (96)  
Losses on acquisitions and disposals (47) (6) (53)  
Profit before taxation 9 300 (19) 9 281  
Taxation (2 552) 19 (2 533)  
Profit for the year 6 748 6 748  
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS        
Cash flow generated from operating activities 9 845 190 10 035  
Cash flow utilised in investing activities (6 213) (196) (6 409)  
Cash flow generated from financing activities 1 280 6 1 286  
Net movement in cash and cash equivalents 4 912 4 912  
Foreign exchange translation adjustments 687 (17) 670  
Cash and cash equivalents at the beginning of the year 8 791 (143) 8 648  
Cash and cash equivalents at the end of the year 14 390 (160) 14 230  

  31 March 2013     1 April 2012  
  Previously
reported
R’m
Change in
accounting
policy
R’m
Restated
R’m
    Previously
reported
R’m
Change in
accounting
policy
R’m
Restated
R’m
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                  
Non-current assets 76 109 11 76 120     62 037 (26) 62 011  
Property, plant and equipment 13 810 (94) 13 716     8 879 (115) 8 764  
Goodwill and other intangible assets 26 440 (45) 26 395     21 768 (175) 21 593  
Investments in associates and joint ventures 33 150 237 33 387     28 095 366 28 461  
Investments and loans 1 891 (83) 1 808     2 564 (97) 2 467  
Derivatives 72 72     86 86  
Deferred taxation 746 (4) 742     645 (5) 640  
Current assets 27 427 (284) 27 143     19 241 (250) 18 991  
Inventory 1 941 (5) 1 936     1 238 (7) 1 231  
Programme and film rights 1 868 1 868     1 522 1 522  
Trade and other receivables and loans 7 310 (119) 7 191     5 935 (100) 5 835  
Derivatives 449 449     85 85  
Cash and cash equivalents 15 813 (160) 15 653     9 825 (143) 9 682  
  27 381 (284) 27 097     18 605 (250) 18 355  
Non-current assets held-for-sale 46 46     636 636  
Total assets 103 536 (273) 103 263     81 278 (276) 81 002  
Total equity 55 853 55 853     49 576 49 576  
Non-current liabilities 29 192 (16) 29 176     17 845 (41) 17 804  
Long-term liabilities 26 720 (5) 26 715     15 552 (25) 15 527  
Post-retirement medical liability 164 (3) 161     139 (2) 137  
Derivatives 972 972     839 839  
Deferred taxation 1 336 (8) 1 328     1 315 (14) 1 301  
Current liabilities 18 491 (257) 18 234     13 857 (235) 13 622  
Current portion of long-term debt 2 298 (2) 2 296     1 613 (3) 1 610  
Trade payables 4 179 (72) 4 107     2 865 (72) 2 793  
Accrued expenses and other current liabilities 10 411 (183) 10 228     7 981 (160) 7 821  
Derivatives 180 180     206 206  
Bank overdrafts and call loans 1 423 1 423     1 034 1 034  
  18 491 (257) 18 234     13 699 (235) 13 464  
Liabilities classified as held-for-sale     158 158  
Total equity and liabilities 103 536 (273) 103 263     81 278 (276) 81 002