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Tiger Brands Limited Integrated Annual Report
2014
Annual financial statements
Notes to the financial statements
for the year ended 30 September 2014
1. Accounting policies
Corporate information
The consolidated financial statements of Tiger Brands
Limited (the company) and the Tiger Brands group
(the group) for the year ended 30 September 2014
were authorised for issue in accordance with a
resolution of the directors on 18 November 2014.
Tiger Brands Limited is incorporated and domiciled in
South Africa, where the shares are publicly traded.
Basis of preparation
The consolidated financial statements have been
prepared on the historical-cost basis, except for items
measured at fair value as indicated below. The
consolidated financial statements are stated in
millions.
Statement of compliance
The consolidated financial statements have been
prepared in accordance with International Financial
Reporting Standards (IFRS), IFRIC Interpretations (IFRS
Interpretations Committee) and the Companies Act
No 71 of 2008.
Basis of consolidation
The consolidated financial statements include the
financial statements of the company and its
subsidiaries (as well as structured entities controlled
by the group or company). The financial statements
of the subsidiaries are prepared for the same
reporting period using consistent accounting policies.
Where the financial year-end of a subsidiary is not
coterminous with that of the group or the accounting
policies adopted by the subsidiary differ from the
group’s accounting policies, the financial statements
of the subsidiary are adjusted in accordance with the
group’s accounting policies and year end.
The results of subsidiaries acquired are included in
the consolidated financial statements from the date
of acquisition, being the date on which the group
obtains control, and continue to be consolidated until
the date that such control ceases. An investor
controls an investee, if and only if, the investor
has all the following:
Ϣ
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Power over the investee
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Exposure, or rights, to variable returns from its
involvement with the investee
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The ability to use its power over the investee to
affect the amount of the investor’s returns.
Subsidiaries acquired with the intention of disposal
within 12 months are consolidated in line with the
principles of IFRS 5
Non-current Assets Held-for-Sale
and Discontinued Operations
and disclosed as
held-for-sale.
All intragroup transactions, balances, income and
expenses are eliminated on consolidation.
Non-controlling interests represent the portion of profit
or loss, or net assets not held by the group. It is
presented separately in the consolidated income
statement, and in the consolidated statement of
financial position, separately from own shareholder’s
equity.
A change in the ownership interest of a subsidiary,
without a change of control, is accounted for as an
equity transaction.
Losses are attributed to the non-controlling interest
even if that results in a deficit balance.
If the group loses control over a subsidiary, it:
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derecognises the assets (including goodwill)
and liabilities of the subsidiary;
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derecognises the carrying amount of any
non-controlling interest;
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Ϣ
derecognises the cumulative translation
differences, recorded in equity;
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recognises the fair value of the consideration
received;
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recognises the fair value of any investment
retained;
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recognises any surplus or deficit in profit or loss;
and
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reclassifies the parent’s share of components
previously recognised in other comprehensive
income to profit or loss.