99 / 248
For the year ended 31 May 2015
97
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
1.
SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The principal accounting policies applied in the preparation of the Group and Company annual
financial statements are set out below in the related notes and are consistent with those adopted
in the prior year, unless otherwise specified.
The Group and Company annual financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee and Financial Reporting Pronouncements as issued by Financial
Reporting Standards Council, the JSE Listings Requirements and the Companies Act, No 71 of 2008.
The term IFRS includes International Financial Reporting Standards (IFRS), International Accounting
Standards (IAS) and interpretations issued by the International Financial Reporting Interpretations
Committee (IFRIC) or the former Standing Interpretations Committee (SIC). The standards referred to
are set by the International Accounting Standards Board (IASB).
The Group and Company annual financial statements are prepared under the historical cost convention,
except for certain financial and equity instruments which have been measured at fair value. Amounts
are rounded to the nearest thousand with the exception of earnings per share, ordinary share capital
and equity compensation benefit. The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and
future periods.
Judgements made by management in the application of IFRS that have a significant effect on the
financial statements and estimates with a significant risk of material adjustment in the next year are
discussed in note 2.
Going concern
The Group and Company’s forecasts and projections, taking account of reasonably possible changes
in trading performance, show that the Group and Company should be able to operate within their
current funding levels into the foreseeable future.
After making enquiries, the Directors have a reasonable expectation that the Group and Company
have adequate resources to continue in operational existence for the foreseeable future. The Group
and Company therefore continue to adopt the going concern basis in preparing the financial statements.