Notes to the Group financial statements

for the year ended 30 June

35.   CHANGES IN ACCOUNTING POLICIES  
  The Group adopted IFRS 10, ‘Consolidated financial statements’, IFRS 11, ‘Joint arrangements’, IFRS 12, ‘Disclosure of interests in other entities’, and consequential amendments to IAS 28, ‘Investments in associates and joint ventures’ and IAS 27, ‘Separate financial statements on the 1st of July 2013. The Group also adopted IAS 19 (revised 2011), ‘Employee benefits’ on the same date. The accounting policies are applied retrospectively and had the following impact on the financial statements.  

(a)  Consolidation of an entity in which the Group holds less than 50%  
  In terms of IFRS 10, ‘Consolidated Financial Statements’ Dinokana Proprietary Limited (“Dinokana”) is assessed to be a subsidiary of Sun International. This has resulted in the restatement of the 30 June 2013 results. Dinokana is now consolidated as a subsidiary whereas previously 49% of Dinokana was proportionately consolidated.  

The effect of the restatement on the 30 June 2013 statement of financial position is as follows:  

  R million   As previously  
reported  
Consolidation  
of Dinokana  
Restated  
  Non current borrowings   6 670   249   6 919  
  Treasury shares   (1 594)  (187)  (1 781) 
  Minorities interest   1 693   (61)  1 632  
  Cash and cash equivalents   1 023   1   1 024  
  The effect of the restatement on the 30 June 2013 statement of comprehensive income is as follows:  

     
  Interest expense   (486)  (19)  (505) 
  Profit for the year attributable to minorities   314   (19)  295  
  The effect of the restatement on the 30 June 2013 statement of cash flows is as follows:  

     
  Cash and cash equivalents at end of year   1 023   1   1 024  
  The consolidation of Dinokana has also resulted in a further 3 427 077 Sun International shares being recognised as treasury shares.  

(b)  Remeasurement of post employment benefit obligations  
In terms of IAS 19R, ‘Employee Benefits’, remeasurements of post employment benefit obligations should be included in other comprehensive income and no longer in profit and loss. The effect of the change on the 30 June 2013 statement of comprehensive income is as follows:  

  R million   As previously  
reported/As  
restated above  
Effective  
change  
Restated  
  Employee benefits   (2 256)  (16)  (2 272) 
  Tax   (477)  4   (473) 
  Profit for the year attributable to minorities (as stated above in section (a))  295   (2)  293  
  The effect of the above changes led to an increase in basic earnings per share of 17 cents.