109 / 160
107
Hyprop Investments Limited
Group annual financial statements 2016
1.
Accounting policies and presentation of financial statements
continued
1.13 Impairment
continued
Non-financial assets
The carrying amounts of the group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, the asset’s recoverable amount is estimated.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated
future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount, and
is recognised in profit or loss. Goodwill is tested for impairment annually.
An impairment loss is reversed, with the exception of goodwill, if there has been a change in the estimates used to determine the recoverable
amount and there is an indication that the impairment loss no longer exists.
An impairment loss is reversed only to the extent that the carrying amount of the asset does not exceed the carrying amount that would
have been determined, net of depreciation, if no impairment loss had been recognised.
1.14 Stated capital
Ordinary shares are classified as equity.
External costs directly attributable to the issue of new shares are shown as a deduction from equity.
1.15 Treasury shares
Company shares held by Hyprop Investments Employee Incentive Scheme Proprietary Limited (incorporated for the benefit of employees)
that have not yet vested are classified as treasury shares on consolidation and presented as a deduction from equity. These shares are held
at cost.
Statement of financial position presentation
On purchase, the cost of the shares acquired is deducted from equity. Subsequently, any gain or loss on the sale or cancellation of the
company’s own equity instruments is recognised directly in equity.
Statement of profit or loss and other comprehensive income presentation
Both distributions and unrealised losses on own shares are eliminated from group profit for the year.
1.16 Dividends
Dividends to shareholders are recognised directly in equity on the date of declaration. Dividends received from subsidiaries or investee
companies are recognised on declaration by the subsidiary or investee company.
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).