These condensed financial statements have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the AC 500 standards as issued by the Accounting Practices Board or its successor and the requirements of the Companies Act 71 of 2008, as amended. These condensed financial statements are in accordance with IAS 34 Interim Financial Reporting, using accounting policies that have been consistently applied to prior periods.
During the period under review, the only Massmart shares acquired in the market were by the Massmart Employee Share Trusts where 0.6 million shares (0.3% of shares in issue) were bought at an average price of R154.99 totalling R86.3 million. In the prior period, the only shares bought in the market were by the Massmart Employee Share Trusts where 1.4 million shares (0.7% of shares in issue) were bought in the market at an average price of R126.84 totalling R175.2 million.
The impairment of assets in the current period relates to the closure of the Game Mauritius store. There was no impairment of assets in the prior period. The impairment of assets in the prior year relates to the impairment of certain acquired goodwill in Masscash.
The Massmart BEE transaction, which came into operation in October 2006, gave rise to an IFRS 2 Share-based Payment charge of R9.8 million (2010: R20.2 million). The ‘A’ and ‘B’ preference shares were issued to the Thuthukani Trust and the Black Scarce Skills Trust respectively.
5. The 2011 year-end Walmart Transaction costs were made up as follows:
Advisors’ fees 238.7
Accelerated share-based payment charge 70.1
Supplier fund 100.0
6. The preference shareholders’ dividend amount of R2.5 million (2010: R16.9 million) represents the June 2011 final cash dividend of 134 cents paid to all Thuthukani beneficiaries. The Thuthukani dividend was equivalent to 100% of the ordinary dividend for the current and prior periods.
Other non-current liabilities and provisions include the lease smoothing liability of R354.5 million (2010: R418.6 million).
8. There were no businesses acquired during the period. The net asset value of the businesses acquired in the prior period was R62.9 million on the date of acquisition.
Included in the 2011 year-end current assets and current liabilities in the Statement of Financial Position were two amounts of R1,093.6 million each. These amounts represent the net cash proceeds held in the three Massmart Employee Share Trusts, and the corresponding liability to the beneficiaries, as a result of the Walmart Transaction. The cash was distributed to beneficiaries shortly after 26 June 2011. The Massmart Employee Share Trusts are consolidated with the Group results.
Related party transactions include private aircraft, used from time to time, in the normal course of business by Massmart and its divisions and hired from competitively selected charter companies, two of which operate aircraft indirectly beneficially owned by Mr MJ Lamberti.
11. Post-balance sheets events include the acquisition of 100% of Fruitspot which became effective on 2 January 2012 and the acquisition of 100% of Rhino Cash & Carry which will be effective from 1 March 2012.
These results have been reviewed by independent external auditors, Deloitte & Touche, and their unmodified review report is available for inspection at the registered office. The review was performed in accordance with the JSE Limited Listings Requirements and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. The preparation of the Group’s condensed consolidated reviewed results was supervised by the Chief Financial Officer, Guy Hayward, BCom, CTA, CA(SA).