MENU Notes to the financial statementsfor the year ended 30 June 2015

  1. Accounting policies
  2. Definitions
  3. Revenue
  4. Cost of sales
  5. Trading profit
  6. Share-based payments
  7. Finance revenue
  8. Finance cost
  9. Taxation
  10. Earnings per share
  11. Headline earnings per share
  12. Dividends paid in the current year
  13. Property, plant and equipment
  14. Investment properties
  15. Investments
  16. Long-term financial assets
  17. Goodwill
  18. Deferred taxation
  19. Inventories
  20. Trade and other receivables
  21. Cash and cash equivalents
  22. Stated capital
  23. Non-distributable reserve
  24. Interest-bearing loans and borrowings
  25. Trade and other payables
  26. Provisions
  27. Reconciliation of profit before taxation to cash generated from operations
  28. Taxation paid
  29. Dividends paid
  30. Commitments and contingencies
  31. Employee benefits
  32. Financial risk management objectives and policies
  33. Related-party transactions
  34. Segment report (restated)
  35. Subsequent events
  36. Discontinued operations
  37. Loss of control in subsidiary
  38. Group entities
      Capital  
Redemption  
Reserve Fund  
Rm’s  		 Foreign  
currency  
translation  
reserve  
Rm’s  		 Total  
Rm’s  
23. Non-distributable reserve          
  Balance as at 1 July 2013     9   84   93  
  Translation of foreign entities       12   12  
  Related to discontinued operations       6   6  
  Realisation of reserves     (9)    (9) 
  Balance as at 30 June 2014     —   102   102  
  Translation of foreign entities       18   18  
  Foreign subsidiary liquidation*       (19)  (19) 
  Sale of controlling interest in foreign subsidiary (note 37)      (12)  (12) 
  Balance as at 30 June 2015     —   89   89  
  *

Following the local establishment of a holding company regime for exchange control purposes and changes in local income tax legislation related to taxation of royalty flows, the Group decided to liquidate its operations in Mauritius during the period. Italtile Mauritius Limited housed the Group’s non-South African trademarks and treasury function outside of South Africa.  
   

In accordance with IAS 21 – The effects of Changes in Foreign Exchanges Rates, certain accumulated exchange differences related to this entity (recorded as foreign translation reserve) have been reclassified to income, resulting in a once-off gain of R19 million. As the transaction has been accounted for as a common control transaction, foreign currency translation reserves related to foreign investments distributed by the entity but retained by the Group are still recognised in foreign currency translation reserve.