ANNUAL FINANCIAL STATEMENTS 2024
for the year ended 30 September 2024
for the year ended 30 September 2024
| 16 | Investments in associated companies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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An associate is an entity over which the group has significant influence through participation in the financial and operating policy decisions. The entity is neither a subsidiary nor a joint arrangement. Associates are accounted for using the equity method of accounting in the consolidated financial statements. Goodwill relating to an associate is included in the carrying amount of the investment and is not tested separately for impairment. The income statement reflects the group’s share of the associate’s profit or loss. However, an associate’s losses in excess of the group’s interest are not recognised. Where an associate recognises an entry directly in other comprehensive income, the group in turn recognises its share in the consolidated other comprehensive income. Profits or losses resulting from transactions between the group and associates are eliminated to the extent of the interest in the underlying associate. After application of the equity method, each investment is assessed for indicators of impairment. If applicable, the impairment is calculated as the difference between the current carrying value and the higher of its value in use or fair value less cost of disposal. Impairment losses are recognised in profit or loss. Associate investments are shown at historical cost, plus the group’s share of accumulated earnings less dividends received, adjusted for translation gains/losses. Where an associate’s reporting date differs from the group’s, the associate prepares financial statements as of the same date as the group. If this is impracticable, financial statements are used where the date difference is no more than three months. Adjustments are made for significant transactions between the relevant dates. Where the associate’s accounting policies differ from those of the group, appropriate adjustments are made to conform to the accounting policies of the group. |
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The conclusion regarding control or significant influence relating to associates is reassessed on an annual basis. In performing this assessment, the directors determine whether or not the group has control over the respective investee based on whether the group has the practical ability to direct the significant activities unilaterally. Any material transactions conducted by the associates which could change “significant influence” to “control” or a reduction in“significant influence” to an investment are considered in this assessment. In making this assessment, the following factors are considered:
Applying prudence, judgement has been applied in relation to the exchange rates used in translation of the material associates, as disclosed in note 16.4 in the reconciliation of the proportionate share of net asset value of associates to the carrying value of the associate investment. Detailed disclosures of investment in associates The group does have associate interests that are, in aggregate, material in the context of the group and accordingly detailed disclosure requirements in terms of IFRS 12 Disclosure of interests in Other Entities is assessed on an annual basis. In determining whether or not any individual associate is material, the group considers a combination of the share of the individual associate interest in the consolidated profits, other comprehensive income, headline earnings as well as total assets of the group. If any of these contributions exceed 5%, it is concluded as individually material. |
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* During the current year National Foods Holdings Limited embarked on a share buy-back programme, which resulted in an increase in the group’s effective percentage holding |
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16.1 |
Reconciliation of carrying value
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16.2 |
Reconciliation of associates income
* Other includes Herbivore Earthfoods Proprietary Limited and Rush Nutrition Proprietary Limited which are equity accounted in terms of IAS 28 |
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16.3 |
Summarised statements of financial position of all associates The aggregate statement of financial position of all associates is summarised as follows (100%):
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16.4 |
The assessment of control or significant influence of associates is performed annually. Empresas Carozzi and National Foods Holding Limited have met the assessment criteria to be classified as a material associate in the current year and thus further disclosure is provided below (100%).
^ National Foods Holdings Limited share price as at 30 September 2024 was US$1,90 per share (2023: US$1,38 per share). The total number of shares held remained unchanged from the prior year at 25 618 474 shares. These shares are publicly traded on the Victoria Falls Stock Exchange (VFEX) |
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