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AFRICAN DAWN 2015 Annual Report

Accounting Policies continued AFRICAN DAWN 57 ANNUAL REPORT 2015 1.18 Segment reporting An operating segment is a component of an entity which engages in business activities from which it may earn revenues and incurs expenses, for which separate financial information is available and whose operating results are regularly reported internally and evaluated by the chief operating decision maker in deciding how to allocate resources and assessing its performance. The identification of reportable segments and the measurement of segment results are determined based on group’s internal reporting to management as well as a consideration of products and services, organisational structures, geographical areas, economic and regulatory environments and the separable nature of activities or conversely inherent interconnectedness and whether these meet the criteria for aggregation. The Group accounts for inter-segment revenues and transfers as if the transactions were with third parties at current market prices. Additional information relating to major clients and other performance measures is provided. The Group has four operating segments: • Investment advisory and investment management • Micro finance • Rentals of property in possession • Other All inter-segment transfers are carried out at arm’s length prices based on prices charged to unrelated customers in standalone sales of identical goods or services. For management purposes, the Group uses the same measurement policies as those used in its financial statements. 1.19 Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares in issue during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary equity holders and the weighted average number of ordinary shares in issue for the effects of all dilutive potential ordinary shares, which comprise convertible notes. 1.20 Significant judgements and sources of estimation uncertainty When preparing the financial statements, management and the board make a number of judgements, estimates and assumptions. The following are the most significant judgements, estimates and assumptions that have been made in preparing the financial statements. Going concern judgement The consolidated and separate financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going concern are outlined below. This judgement is based on a careful consideration of the following: • Financial statements should be prepared on a going concern basis unless it is intended to liquidate the entity or to cease trading or there is no realistic alternative but to do so. • In considering whether the going concern assumption is appropriate, all available information is taken into account, including information about the foreseeable future. • Where there are material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going concern, those uncertainties should be disclosed. The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going concern are outlined in the table below. The table also outlines the actions being taken to manage these uncertainties and also the current status of these uncertainties and actions.


AFRICAN DAWN 2015 Annual Report
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