These interim financial results have been prepared in accordance with the recognition and measurement requirements of IFRS and the disclosure requirements of IAS 34. The accounting policies are consistent with those used in the annual financial statements for the financial period ended 31 August 2008 with the following exception IFRIC 13: Customer Loyalty Programmes, all related items in the group are now presented in accordance with this statement. The group adopted IFRIC 13, Customer Loyalty Programmes, on 1 September 2008.
The interpretation applies to customer loyalty award credits that an entity grants to its customers as part of a sales transaction, in terms of IAS 18, and subject to meeting any further qualifying conditions, the customer can redeem in the future for free or discounted goods or services. The interpretation requires that an entity recognises credits that it awards to customers as a separately identifiable component of revenue, which would be deferred at the date of the initial sale.
The results for the year ended 31 August 2008 have been restated accordingly. The net impact on the income statement for the six months ended 29 February 2008 is a R0.6 million decrease to profit after tax. The net impact on the balance sheet as at 31 August 2008 is a R2.9 million decrease in shareholders equity, and a R2.9 million increase in total liabilities.