Items of property, plant and equipment that were previously fully depreciated, were reinstated to reflect the reflect the applicable useful lives and residual values from their respective dates of acquisition. Where not practicable, the Group has elected to measure individual items of property, plant and equipment at fair value on 1 July 2004. In future those fair values   are deemed to be cost at that date. Where significant components of an item of property, plant and equipment have different useful lives or residual values those components are accounted for as separate items of property, plant and equipment. Previously all parts of an item of property, plant and equipment were depreciated at the same rate. 2.2 Share-based payment transactions In accordance with IFRS2: Share-based Payment the fair value of share options granted to employees is recognised as an employee expense in operating profit with a corresponding increase in equity. The fair value is measured at grant date and expensed over the period during which the employee becomes unconditionally entitled to the equity instruments (the vesting period). The fair value of the instruments granted is measured using an appropriate valuation technique, taking into account the terms and conditions upon which the instruments are granted. This accounting policy has been applied to all share options granted after 7 November 2002 that had not yet vested at 1 January 2005. Previously such expenses were not recognised in the income statement. 2.3 Presentation of minority interest in subsidiary companies Minority interests are now reflected as part of equity. Any change in ownership interest in subsidiary companies without a change in control is recognised as an equity transaction in the consolidated financial statements. 2.4 Discontinued operations In accordance with the requirements ofIFRS5:   Non-current Assets Held-For-Sale and Discontinued Operations , the financial results of discontinued operations are reported as one line item in the income statement and not on a line-by-line basis. Refer to note 3. 2.5 Interest free receivables and the recognition of revenue IAS 39: Financial Instruments: Recognition and Measurement    requires that imputed interest be recognised on interest free receivables. IAS18: Revenue further requires that revenue be recognised at the fair value of the consideration received or receivable. Accordingly, where the fair value of the Group's consideration is significantly impacted by the time value of money, a portion of the revenue has been deemed to be interest income recognised on a time apportionment basis. This has resulted in a decrease in recognised revenue and certain financial receivables and liabilities. 2.6 Reclassifications and disclosure adjustments In addition to the above adjustments certain reclassifications and disclosure adjustments were made to the balance sheet presentation, most notably the reallocation of certain interest-bearing liabilities from accounts payable to short-term loans and the separation of computer software from property, plant and equipment into intangible assets. The depreciation of these intangible assets is now reflected as amortisation of intangible assets in the income statement.

IFRS

transition

Restated

Restated

R millions

01.07.04

31.12.04

30.6

Reclassification of balance sheet items under IFRS and SA GAAP improvements Property, plant and equipment

(2)

(13)

(13)

Investment property

–

10

–

Other investments

–

(41)

–

Associate companies

1

1

–

Other investments

(4)

(3)

(2)

Accounts receivable and other

(4)

(4)

(3)

Bank balances and cash

(37)

–

(2)

Intangible assets

9

9

18

Other long-term liabilities

–

(168)

–

Accounts payable and other

66

60

24

Bank overdrafts and short-term loans

(29)

149

(22)

2.7 Reconciliation of equity BALANCE SHEET Equity previously reported under SA GAAP

2 603

2 676

2 967

SA GAAP adjustments Adjustment to depreciation of headlease investment property

–

7

–

Goodwill impairment

(5)

–

–

Accounts receivable and other recognition of operating lease income on a straight-line basis*

–

104

–

Accounts payable and other recognition of operating lease expense on a straight-line basis*

–

(102)

–

IFRS adjustments Property, plant and equipment

159

179

197

Accounts receivable and other - impairment provision and discounting of receivables

29

(20)

(14)

Goodwill

–

(8)

–

Reclassification of minority interest as equity

54

40

92

Accounts payable and other

(90)

(26)

(22)

Deferred taxation impact on IFRS adjustments

(13)

(9)

(64)

Equity as reported under IFRS

2 737

2 841

3 156