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 | Accounting policies |
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Basis of preparation
The accounting policies comply in all material respects with South African Statements of Generally Accepted Accounting Practice (SA GAAP) as well as the South African Companies Act of 1973.
Changes in accounting policies
These accounting policies are consistent with those applied in 2001 except for the adoption of the new accounting statement on Investment Properties (AC 135). In terms of this statement, certain defined owner-occupied properties can no longer be treated as investment properties and are now depreciated under the provisions of the statement dealing with property, plant and equipment (AC 123). This change has been applied retrospectively and comparative amounts for 2001 have been restated.
Implementation of AC 133
The 2003 year sees the introduction of AC 133, a new accounting standard impacting the recognition and measurement of financial instruments. Areas most affected by this standard include the qualification criteria for hedge accounting, discounting cash flows in determining credit provisions and fair value accounting of investment securities. The group has converted its accounting systems and is well placed to comply with the new standard. To accommodate the changes arising from this statement, certain amendments to the calculation of headline earnings were introduced in Circular 07/02 issued by the South African Institute of Chartered Accountants. As the group is adopting AC 133 in the new financial year, it has accordingly excluded Liberty's investment surpluses/deficits, which are of a capital nature, from headline earnings in the current year.
Auditors’ report
The auditors, PricewaterhouseCoopers Inc. and KPMG Inc., have issued their opinion on the group financial statements for the year ended 31 December 2002. A copy of the auditors’ unqualified report is available for inspection at the company’s registered office.
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