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Note 40
40. CHANGE IN ACCOUNTING POLICY
 

The Group has elected to early adopt the amendments in IAS 21 (Revised) in the current year with effect from 1 April 2004. The early adoption of the standard, which only becomes effective for years ending after 1 January 2006, results in a change in accounting policies previously applied.

Adoption of the standard, with effect from 1 April 2004, resulted in foreign currency fluctuations in respect of shareholder loans forming part of an entity’s net investment in a foreign operation, being recognised as a separate component of equity on consolidation, as opposed to being recorded in the consolidated income statement as previously prescribed. Foreign currency fluctuations on these loans will, however, still be recorded in the income statements of the respective stand-alone entities.

The change in accounting policy for the year ended 31 March 2005, is reflected in the table below:
     
Gross
Rm
  
Tax effect
Rm
  
Net
Rm
  Retained earnings  
 
 
  Opening retained earnings – restated  
9 040
 
—
 
9 040
  Opening retained earnings as previously reported  
8 003
 
—
 
8 003
  Reversal of foreign exchange loss  
1 037
  
—
 
1 037
  Net profit – restated  
6 357
 
—
 
6 357
  Net profit for the year as previously reported  

6 376

 
—
 
6 376
  Foreign exchange loss  
(19)
 
—
 
(19)
               
  Dividends paid  
(680)
 
—
 
(680)
  Retained earnings at the end of March 2005 (restated)  
14 717
 
—
 
14 717
 
 
 

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