96 / 156
NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2015
1. Accounting policies and presentation of annual financial statements
continued
1.21 Taxation
continued
1.21.1 Current taxation
continued
The effect on deferred taxation of any changes in taxation rates is recognised in profit or loss for the period, except to
the extent that it relates to items previously charged or credited directly to other comprehensive income or equity.
Deferred taxation assets and liabilities are offset if there is a legally enforceable right to offset current taxation liabilities
and assets, and they relate to income taxes levied by the same taxation authority on the same taxable entity.
1.21.3 Taxation expenses
Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period.
Income taxation is recognised in profit or loss except to the extent that it relates to items recognised directly in equity
or other comprehensive income, in which case it is recognised in equity or other comprehensive income respectively.
The charge for current taxation is based on the results for the period as adjusted for items which are disallowed and any
taxation payable in respect of previous years. Current taxation is the expected taxation payable on the taxable income
for the year, using taxation rates enacted or substantively enacted at the reporting date, and any adjustments to
taxation payable in respect of previous years.
1.22 Segment reporting
The group determines and presents operating segments based on information that is provided internally to the chief operating
decision maker (executive management committee (exco) and to the board of directors).
Segment results that are reported to exco include items directly attributable to a segment or a region, as well as those that can
be allocated on a reasonable basis.
On a primary basis the operations are organised into the following business segments: super regional malls, large regional malls,
value/lifestyle centres, offices and investments in sub-Saharan Africa (excluding South Africa).
1.23 Earnings and headline earnings per share
Earnings per share are calculated based on the weighted average number of shares in issue for the year and profit attributable
to shareholders. Headline earnings per share are calculated in terms of the requirements set out in Circular 2/2013 issued
by SAICA.
1.24 Key estimations and uncertainties
Estimates and assumptions are an integral part of financial reporting and as such have an impact on the amounts reported for
the group’s income, expenses, assets and liabilities. Judgement in these areas is based on historical experience and reasonable
expectations relating to future events.
Information on the key estimations and uncertainties that have the most significant effect on amounts recognised are set out
below:
Investment property
The valuation of investment properties requires judgement in the determination of future cash flows, appropriate discount
rates and capitalisation rates.
For more information, refer to note 2.
Building appurtenances
The determination of the useful life and residual values is subject to management estimates. Management reviews the
depreciation rates and residual values on an annual basis to take account of any changes in circumstances.
For more information, refer to note 3.
Fair value of financial instruments
The fair value of a financial instrument on initial recognition assumes that the asset or liability is exchanged in an orderly
transaction between market participants to purchase and sell the asset or transfer the liability at the measurement date under
current market conditions.
94
Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS