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Theprincipal accountingpolicies applied in thepreparationof theseconsolidated financial statements are set out below.
1. BASIS OF PRESENTATION
These financial statements are prepared in accordance with International Financial Reporting Standards (‘IFRS’).
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated
financial statements are disclosed in note 34.
All monetary information and figures presented in these financial statements are stated in thousands of Rand (R’000), unless
otherwise indicated.
The Group has adopted the following new standards and amendments to standards, including any consequential amendments
to other standards, with a date of initial application of 1 January 2017:
• Amendments to IAS 7, ‘Cash flow statements’
• Amendments to IAS 12, ‘Income taxes’
• Annual improvements 2014-2016, affecting IFRS 12 ‘Disclosure of interests in other entities’
These do not have a material impact on the Group’s overall results and financial position.
2. CONSOLIDATION
The financial statements include the assets, liabilities and results of the operations of PPS Holdings Trust (‘Parent’) and its
subsidiaries (‘together the Group’).
Subsidiaries
Subsidiaries are entities over which the Group directly or indirectly has control. An investor controls an investee when the
investor is exposed, or has rights, to variable returns from its involvement with the investees and has the ability to affect those
returns through its power over the investee.
Subsidiaries are consolidated from the date on which the Group obtains control. Subsidiaries are deconsolidated when
control ceases.
All the Group subsidiaries were created by the Group. There are no acquired subsidiaries and there is no goodwill arising
on consolidation.
All unit trusts which are managed by a controlled subsidiary of the Group are consolidated, irrespective of the Group’s economic
interest. Third Party unit trust holders’ interests in unit trusts are liabilities of the unit trust and is classified as such in the Group.
Intra-group transactions, balances and unrealised gains on transactions are eliminated on consolidation.
Unrealised losses are also eliminated, unless the transaction provides evidence of an impairment of the asset transferred.
In the Parent’s annual financial statements, the interests in subsidiaries are accounted for at cost. A provision for impairment is
created if there is evidence of impairment.
Non-controlling interest
This is theminority shareholders’ interest in the surplus/deficit after tax since acquisition, and the net assets of entities controlled
by the group. In the Statement of Financial Position, the non-controlling interest is disclosed as part of equity in terms of IFRS.
Associates
An associate is an entity over which the Group has the ability to exercise significant influence, but not control, through
participation in the financial and operating policy decisions of the entity. Judgment is applied in assessing which entities the
Group has the ability to exercise significant influence over. The Group has no shareholding in associates and therefore no rights
to either net profits/losses, or net assets.
GROUP ACCOUNTING POLICIES
PPS
INTEGRATED REPORT
2017
94