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NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2015
1. Accounting policies and presentation of annual financial statements
continued
1.16 Dividends
Dividends to shareholders are recognised directly in equity on the date of declaration.
1.17 Foreign currency
Foreign currency transactions are translated to the respective functional currency of the group at the exchange rates at the
dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency
at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the
functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on translation are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
to the group’s presentation currency (Rand) at the exchange rates at the reporting date. The income and expenses of foreign
operations are translated to Rand at the dates of the transactions (an average rate is used).
Foreign currency translation reserve
Foreign currency differences on translation of the financial position and results of a foreign operation into the group’s
presentation currency are recognised in the foreign currency translation reserve (FCTR). When a foreign operation is disposed
of, in part or in full, the relevant amount in the FCTR is transferred to profit and loss as part of the profit or loss on disposal.
1.18 Employee benefits
Short-term benefits
The cost of short-term employee benefits is recognised during the period in which the employees render the related service.
Short-term employee benefits are measured on an undiscounted basis. The accrual for employee entitlements to salaries,
bonuses and annual leave represents the amount which the group has a present legal or constructive obligation to pay as a
result of the employees’ services provided up to the reporting date.
Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which the group pays contributions to a separate entity
and has no legal or constructive obligation to pay further amounts if the fund does not hold sufficient assets to pay all
employees the benefits relating to employee service in the current and prior periods.
The contributions are recognised as an employee benefit expense when they are due.
Long-term benefits
Incentive share scheme
The group operates a scheme that was formulated to reward employees who make a meaningful and sustainable contribution
to the financial performance of Hyprop.
A liability is recognised in the statement of financial position. The liability is remeasured at each reporting period to reflect the
revised fair value, adjusted for changes in assumptions, refer to note 26.
Changes in the fair value of the liability are recognised in profit or loss.
Share-based employee remuneration
The group operates equity-settled share-based conditional unit plans for its employees.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where
employees are rewarded using share-based payments, the fair value of employees’ services is determined indirectly by reference
to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of
non-market vesting conditions.
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Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS