The Summarised Consolidated Financial Statements for the year ended 30 June 2020 are prepared in accordance with the requirements of the JSE Listings Requirements, the JSE Guidance Letter: Summary Financial Statements dated 25 July 2011, the requirements of the Companies Act of South Africa, in accordance with the framework concepts and the measurement and recognition requirements of IFRS and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 – Interim Financial Reporting.
The Summarised Consolidated Financial Statements are extracted from the Annual Financial Statements, but are not audited. The Annual Financial Statements have been audited by KPMG Inc., who expressed an unmodified opinion thereon. The Annual Financial Statements and the Independent Auditor’s Report thereon are available for inspection at the Company’s registered office. The directors take full responsibility for the preparation of the Summarised Consolidated Financial Statements and the financial information has been correctly extracted from the Annual Financial Statements.
The accounting policies applied in the preparation of the Summarised Consolidated Financial Statements are in terms of IFRS and are consistent with those applied in the previous Consolidated Financial Statements with the exception of the adoption of IFRS 16 – Leases and the definitions of operating profit, EBITA and EBITDA which now exclude capital items. The new standard IFRS 16 – Leases became effective for the first time in Super Group’s financial year that commenced 1 July 2019.
IFRS 16 – Leases replaces IAS 17 – Leases, introduced changes to lessee accounting, in particular, the requirement to recognise leases currently classified as operating leases on the Summarised Consolidated Statement of Financial Position. The standard requires a lessee to recognise a right-of-use asset, representing its rights to use the underlying lease asset, and a lease liability, representing its obligation to make lease payments, with certain exceptions for short-term leases or leases of low-value assets such as cell phones, printers and office furniture, on the Summarised Consolidated Statement of Financial Position. The Group adopted IFRS16 – Leases on 1 July 2019, using the modified retrospective approach resulting in IAS 17 still being applied for leases in the prior reporting period. Therefore, the cumulative effect of adopting this standard was recognised as an adjustment to retained earnings on 1 July 2019 with no restatement of the comparable period presented.
The adoption of IFRS 16 resulted in a right-of-use asset and lease liability of R2.32 billion and R2.88 billion, respectively being recognised on the Summarised Consolidated Statement of Financial Position with an opening retained earnings adjustment of R175.1 million in the Summarised Consolidated Statement of Changes in Equity. The lease expenses decreased by R512.4 million, depreciation expense increased by R464.5 million and the finance costs increased by R175.5 million in the Summarised Consolidated Statement of Comprehensive Income.
Standards effective for reporting periods starting on or after 1 July 2020:
- Amendments to References to Conceptual Framework in IFRS Standards
- Definition of a business (Amendments to IFRS 3)
- Definition of Material (Amendments to IAS 1 and IAS 8)
The Board’s initial view on these standards not yet effective is that the impact is not expected to be material.
The Summarised Consolidated Financial Statements are presented in Rand, which is the Company’s functional currency and the Group’s presentation currency, rounded to the nearest thousand.
These results have been compiled under the supervision of the Chief Financial Officer, Colin Brown, CA(SA), BCompt (Hons), MBL.