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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued 45. Events after the reporting period AFRICAN DAWN 123 ANNUAL REPORT 2015 Non-adjusting events SARS Refer to note 13 and 22 for details of subsequent events relating to SARS. None of these events are adjusting events. Delisting of treasury shares On 1 December 2014, the board resolved to apply to the JSE Limited for the treasury shares (refer to note 16) to be de-listed. These shares were de-listed on 9 March 2015 and have therefore been disclosed as a non-adjusting event. Knife Capital Group acquisition - revision of terms Refer to note 1.20. Elite recapitalisation Afdawn will convert a portion of its shareholder loan into equity of Elite in November 2015. A Heads of Agreement has been signed with a third party who will acquire 51% of the economic interest of Elite by providing R15 000 000 of permanent capital, a further R15 000 000 of loan funding facility for 5 years and access to a client base. This will give Elite the ability to generate the required cash flow to fund operations, growth and other financial obligations. 46. Segment report The segment information has been prepared in accordance with IFRS 8 - Operating Segments which defines the requirements for the disclosure of financial information of an entity’s operating segments. IFRS 8 requires segmentation based on the Group’s internal organisation and reporting of revenue and operating income based upon internal accounting methods. The Group discloses its operating segments according to the components regularly reviewed by the chief operating decision-makers, being the executive directors. These amounts have been reconciled to the consolidated financial statements. The measures reported by the Group are in accordance with the accounting policies adopted for preparing and presenting the consolidated financial statements. Segment revenue excludes value added taxation and includes inter- segment revenue which is nil. Net revenue represents segment revenue from which intersegment revenue has been eliminated. Sales between segments are made on a commercial basis. Segment operating profit before capital items represents segment revenue less segment expenses. Segment expenses consist of operating expenses. Depreciation, amortisation and impairments have been allocated to the segments to which they relate. The segment assets comprise all assets of the different segments that are employed by the segment and that are either directly attributable to the segment, or can be allocated to the segment on a reasonable basis. The Group’s reportable segments are based on the following lines of business: • Investment advisory and investment management This segment consists of the Knife Capital Group which provides investment advisory and investment management services to entrepreneurial and innovative companies. • Micro finance This segment consists of Elite and Elite Two. These companies are involved in micro finance in the unsecured lending industry and have a wide base of customers (mostly individuals). • Rentals of properties in possession


AFRICAN DAWN 2015 Annual Report
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