88 / 156
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2015
1. Accounting policies and presentation of annual financial statements
1.1 Statement of compliance
The annual financial statements have been prepared in accordance with International Financial Reporting Standards, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by
the Financial Reporting Standards Council, the JSE Limited Listings Requirements and the requirements of the Companies Act of
South Africa, 2008.
1.2 Basis of preparation
The annual financial statements have been prepared on the historical cost basis, except for the measurement of investment
properties, investment property classified as held for sale and certain financial instruments at fair value, and incorporate the
principal accounting policies set out below.
Fair value adjustments do not affect the determination of distributable earnings, but have an effect on net asset value per share
to the extent that such adjustments are made to the carrying values of assets and liabilities.
All amendments to standards applicable to Hyprop’s financial year beginning on 1 July 2014 have been considered. Based on
management’s assessment, the following new amendments do not have a material impact on the group’s financial statements:
IFRS 2
Share-Based Payments
IAS 19
Employee Benefits
IFRS 3
Business Combinations
IAS 24
Related-Party Disclosure
IFRS 8
Operating Segments
IAS 27
Consolidated and Separate Financial Statements
IFRS 10
Consolidated Financial Statements
IAS 36
Impairment of Assets
IFRS 12
Disclosure of Interest in Other Entities
IAS 40
Investment Property
IFRS 13
Fair Value Measurement
Other than the amendments, all accounting policies applied in the preparation of these financial statements are consistent with
those applied in the consolidated financial statements for the year ended 30 June 2014.
Various new accounting standards, or revisions to current accounting standards, have been issued with effective dates applicable
to future annual financial statements. Refer to note 1. 25 for further information.
1.3 Basis of consolidation
The group annual financial statements comprise the consolidated annual financial statements which incorporate the annual
financial statements of the company and entities controlled by the company.
Control is achieved when the company:
Q
Has power over the investee
Q
Is exposed, or has rights, to variable returns from its involvement with the investee
Q
Has the ability to use its power to affect its returns
The company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
The consolidated annual financial statements incorporate the assets, liabilities, income, expenses and cash flows of the group
and all entities controlled by the group. The results of subsidiaries acquired or disposed of during the year are included in the
consolidated financial statements from the date of acquisition or up to the date of disposal, as applicable.
All intra-group transactions, unrealised profits and balances between group entities are eliminated on consolidation.
1.4 Business combinations
The group applies the acquisition method in accounting for business combinations. The consideration transferred by the group
to obtain control of a subsidiary is calculated as the sum of the acquisition date fair values of assets transferred, liabilities
incurred and the equity interests issued by the group, which includes the fair value of any asset or liability arising from a
contingent consideration arrangement. Acquisition costs are expensed as incurred.
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Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS