NOTE 34

34.

CHANGES TO COMPARATIVE INFORMATION

In terms of IFRS 10, an investor controls (and therefore should consolidate) an investee when the investor has power over the investee, is exposed, or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. An investee can either be a separate legal entity or a deemed separate entity. The cell captives do not meet the criteria to be classified as a separate entity. As a result Barloworld will not consolidate the cell captives from the 2014 financial year and will disclose the cell captives as investments in terms of IAS 39. The cells are actively managed on a fair value basis. The movement in the investment will go through the income statement and will be disclosed in the operating profit line. These changes are retrospective and the prior year numbers have been restated accordingly. The operating profit was reduced as follows: September 2013: R6 million and September 2012: R5 million but the net impact on headline earnings was zero.

Amendments to IAS 19 require that all actuarial gains and losses in respect of defined benefit post-employment plans are recognised in other comprehensive income. In addition, the standard no longer requires the expected return on plan assets to be recognised in profit or loss, rather a net interest income/expense is recognised on the net asset or liability. Plan administration expenses are recognised as operating expenses. All other remeasurements relating to plan assets are also recognised in other comprehensive income. These changes are retrospective and the prior year numbers have been restated accordingly. September 2013 operating profit was reduced by R64 million (September 2012: R58 million), net finance cost increased by R39 million (September 2012: R47 million) and the net after tax impact on headline earnings was a reduction of R83 million (September 2012: R58 million).

In addition, the prior year numbers were further restated to disclose the Australian automotive business as a discontinued operation. The business was sold effective 31 March 2014.

Consolidated income statement

	2013				2012
	Previously stated Rm	Dis- continued operations Rm	IFRS 10/ IAS 19 Rm	Restated Rm	Previously stated Rm	Dis- continued operations Rm	IFRS 10/ IAS 19 Rm	Restated Rm
Revenue	65 102	(5 508)	(96)	59 498	58 554	(5 047)	(91)	53 415
Operating profit before items listed below (EBITDA)	5 623	(165)	(69)	5 389	4 905	(146)	(30)	4 729
Depreciation	(1 960)	20		(1 940)	(1 806)	20		(1 786)
Amortisation of intangible assets	(136)			(136)	(111)			(111)
Operating profit	3 527	(145)	(69)	3 313	2 988	(126)	(30)	2 832
Fair value adjustments on financial instruments	(47)			(47)	(93)			(93)
Net finance costs	(942)	21	(51)	(972)	(776)	18	(60)	(818)
Profit before exceptional items	2 538	(124)	(120)	2 294	2 119	(108)	(90)	1 921
Exceptional items	(119)	40		(79)	190			190
Profit before taxation	2 419	(84)	(120)	2 215	2 309	(108)	(90)	2 111
Taxation	(804)	38	37	(729)	(815)	31	31	(753)
Profit after taxation	1 615	(46)	(83)	1 486	1 494	(78)	(58)	1 358
Income from associates and joint ventures	185			185	141			141
Net profit from continuing operations	1 800	(46)	(83)	1 671	1 635	(78)	(58)	1 499
Discontinued operations
Profit from discontinued operations		46		46		78		78
Net profit for the period	1 800		(83)	1 717	1 635		(58)	1 577
Attributable to:
Owners of Barloworld Limited	1 692		(83)	1 609	1 559		(58)	1 501
Non-controlling interest in subsidiaries	108			108	76			76
	1 800		(83)	1 717	1 635		(58)	1 577
Earnings per share (cents)
– basic	801.9		(38.9)	763.0	739.9		(28.0)	711.9
– diluted	798.3		(39.1)	759.2	734.5		(28.2)	706.3
Earnings per share from continuing operations (cents)
– basic	801.9	(23.1)	(38.9)	739.9	739.9	(36.2)	(28.0)	675.7
– diluted	798.3	(23.0)	(39.1)	736.2	734.5	(35.9)	(28.2)	670.4
Profit per share from discontinued operations (cents)
– basic		23.1		23.1		36.2		36.2
– diluted		23.0		23.0		35.9		35.9
Summarised consolidated statement of comprehensive income restatement
Items that will not be reclassified to profit or loss:	(377)		87	(290)	(133)		109	(24)
Actuarial losses on post-retirement benefit obligations	(430)		112	(318)	(149)		107	(42)
Taxation effect	53		(24)	29	16		2	18

Condensed consolidated statement of financial position

	2013			2012
	Previously stated Rm	IFRS 10/ IAS 19 Rm	Restated Rm	Previously stated Rm	IFRS 10/ IAS 19 Rm	Restated Rm
ASSETS
Non-current assets	15 997	26	16 023	13 470	33	13 503
Property, plant and equipment	11 356		11 356	9 473		9 473
Goodwill	1 820		1 820	1 759		1 759
Intangible assets	1 399		1 399	1 049		1 049
Investment in associates and joint ventures	571		571	430		430
Finance lease receivables	115		115	125		125
Long-term financial assets	82	26	108	97	33	130
Deferred taxation assets	654		654	537		537
Current assets	24 365	(152)	24 213	22 340	(155)	22 185
Vehicle rental fleet	2 081		2 081	1 908		1 908
Inventories	11 688		11 688	10 855		10 855
Trade and other receivables	7 698	(11)	7 687	6 916	(7)	6 909
Taxation	62		62	37		37
Cash and cash equivalents	2 836	(141)	2 695	2 624	(148)	2 476
Assets classified as held for sale	371		371
Total assets	40 733	(126)	40 607	35 810	(122)	35 688
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium	316		316	309		309
Other reserves	4 084	10	4 094	2 433		2 433
Retained income	10 977	58	11 035	10 127	54	10 181
Interest of shareholders of Barloworld Limited	15 377	68	15 445	12 869	54	12 923
Non-controlling interest	462		462	298		298
Interest of all shareholders	15 839	68	15 907	13 167	54	13 221
Non-current liabilities	9 708	(97)	9 611	8 964	(82)	8 882
Interest-bearing	7 285		7 285	7 048		7 048
Deferred taxation liabilities	404	17	421	371	13	384
Provisions	294	(27)	267	254	(26)	228
Other non-current liabilities	1 725	(87)	1 638	1 291	(69)	1 222
Current liabilities	15 080	(97)	14 983	13 679	(94)	13 585
Trade and other payables	10 787	(7)	10 780	9 548	(8)	9 540
Provisions	1 079	(84)	995	839	(81)	758
Taxation	246	(6)	240	252	(5)	247
Amounts due to bankers and short-term loans	2 968		2 968	3 040		3 040
Liabilities directly associated with assets classified as held for sale	106		106
Total equity and liabilities	40 733	(126)	40 607	35 810	(122)	35 688

Condensed consolidated statement of cash flows

	2013			2012
	Previously stated Rm	IFRS 10/ IAS 19 Rm	Restated Rm	Previously stated Rm	IFRS 10/ IAS 19 Rm	Restated Rm
Cash flow from operating activities
Operating cash flows before movements in working capital	5 936	(12)	5 924	5 199	6	5 205
Increase in working capital	535	4	539	(3 128)	(3)	(3 131)
Cash generated from operations before investment in rental assets	6 471	(8)	6 463	2 071	3	2 074
Net investment in fleet leasing and equipment rental assets	(1 636)		(1 636)	(1 481)		(1 481)
Net investment in vehicle rental fleet	(572)		(572)	(633)		(633)
Cash utilised in operations	4 263	(8)	4 255	(43)	3	(40)
Realised fair value adjustments on financial instruments	(55)	1	(54)	(19)		(19)
Finance costs and investment income	(771)	(2)	(773)	(696)	9	(687)
Taxation paid	(837)	16	(821)	(596)	16	(580)
Cash inflow/(outflow) from operations	2 600	7	2 607	(1 354)	28	(1 326)
Dividends paid (including non-controlling interest)	(598)		(598)	(443)		(443)
Net cash applied to operating activities	2 002	7	2 009	(1 797)	28	(1 769)
Net cash applied to investing activities	(1 349)		(1 349)	(1 120)		(1 120)
Acquisition of subsidiaries, investments and intangibles	(775)		(775)	(1 589)		(1 589)
Proceeds on disposal of subsidiaries, investments, intangibles and loans repaid	105		105	931		931
Net investment in leasing receivables	22		22	98		98
Acquisition of property, plant and equipment	(818)		(818)	(824)		(824)
Proceeds on disposal of property, plant and equipment	117		117	264		264
Net cash inflow/(outflow) before financing activities	653	7	660	(2 917)	28	(2 889)
Net cash (used in)/from financing activities	(620)		(620)	2 715		2 715
Ordinary shares issued	4		4	2		2
Shares repurchased for forfeitable share plan	(32)		(32)	(24)		(24)
Purchase of non-controlling interest	(125)		(125)
Non-controlling equity loans	6		6	9		9
Increase in interest-bearing liabilities	(473)		(473)	2 728		2 728
Net increase/(decrease) in cash and cash equivalents	33	7	40	(202)	28	(174)
Cash and cash equivalents at beginning of period	2 624	(148)	2 476	2 754	(177)	2 577
Effect of foreign exchange rate movements	208		208	72		72
Effect of cash balances held for sale	(29)		(29)
Cash and cash equivalents at end of period	2 836	(141)	2 695	2 624	(148)	2 475