160 / 276
ANNUAL FINANCIAL STATEMENTS
Notes to the financial statements
continued
for the year ended 30 September 2014
158
Tiger Brands Limited Integrated Annual Report
2014
average number of shares for earnings per share
and headline earnings per share purposes, and the
cost price of the shares is reflected as a separate
component of capital and reserves in the statement
of financial position. Dividends received on treasury
shares are eliminated on consolidation. No gain or
loss is recognised in the income statement on the
purchase, sale, issue or cancellation of treasury
shares. Consideration received or paid in respect
of treasury shares is recognised in equity.
Contingent assets and contingent
liabilities
A contingent asset is a possible asset that arises from
past events and which existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the company. Contingent assets are not recognised
as assets, but disclosed.
A contingent liability is a possible obligation that
arises from past events and which existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the company. Alternatively, it may be a
present obligation that arises from past events but is
not recognised because an outflow of economic
benefits to settle the obligation is not probable, or
the amount of the obligation cannot be measured
with sufficient reliability. Contingent liabilities are not
recognised as liabilities unless they are acquired as
part of a business combination, but disclosed.
Events after the reporting date
Recognised amounts in the financial statements are
adjusted to reflect significant events arising after the
reporting date, but before the financial statements
are authorised for issue, provided there is evidence
of conditions that existed at the reporting date.
Events after the reporting date that are indicative of
conditions that arose after the reporting date are
dealt with by way of a note.
Significant accounting judgements
and estimates
Judgements
In the process of applying the group’s accounting
policies, management has made the following
judgements, apart from those involving estimations,
which has the most significant effect on the amounts
recognised in the financial statements:
Consolidation of structured entities
The structured entities established in terms of the BEE
transaction implemented in October 2005 and
October 2009, have been consolidated in the
group results. The substance of the relationship
between the company and these entities has been
assessed and the decision made that they are
controlled entities, mainly due to the fact that they
have been formed to carry out specific objectives
and that the group is exposed to variable returns.
Detailed disclosures of non-controlling interests
The group does not have subsidiaries that have a
material non-controlling interest in the context of the
group and accordingly detailed non-controlling
interest disclosure is not required in the current year
in terms of IFRS 12
Disclosure of Interests in Other
Entities
. In determining whether or not any
non-controlling interests are material, the group
considered the share of the individual non-controlling
interests in the consolidated net assets of the group.
In addition, the total non-controlling interest is below
10% of the group’s consolidated net assets and
hence considered not to be material to the group.
Estimates and assumptions
The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets