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| ACCOUNTING POLICIES |
| for the year ended 30 June 2007 |
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| The principal accounting policies adopted in the preparation of
these consolidated financial statements are set out below and
have been applied consistently to all periods presented. These
accounting policies are consistent with those applied in the
previous periods with the exception of investment property
which was changed from amortised cost to fair value.
Comparative figures have been restated to more fairly present
the change in accounting policy (see note 50). |
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| BASIS OF PREPARATION |
These consolidated financial statements have been prepared
under the historical cost convention as modified by the
revaluation of non-trading financial asset investments, financial
assets and financial liabilities held-for-trading, financial assets
designated as fair value through profit and loss and investment
property. Non-current assets and disposal groups held-for-sale,
where applicable, are stated at the lower of its carrying amount
or fair value less costs to sell.
The preparation of financial statements requires the use of
estimates and assumptions that affect the reported amounts of
assets and liabilities, and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Although these estimates are based on management's best
knowledge of current events and actions, actual results may
ultimately differ from those estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects
only that period, or in the period of the revision and future periods
if the revision affects both current and future periods.
Judgements made by management in the application of IFRS
that have a significant effect on the financial statements,
and significant estimates made in the preparation of these
consolidated financial statements are discussed in note 48.
Standards, interpretations and amendments to published
standards that are not yet effective as well as those adopted
early by the Group are discussed in note 49. |
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| STATEMENT OF COMPLIANCE |
| These consolidated financial statements are prepared in
accordance with IFRS and Interpretations adopted by the
International Accounting Standards Board (IASB) and the
International Financial Reporting Interpretations Committee
(IFRIC) of the IASB. |
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| BASIS OF CONSOLIDATION |
| The Group consists of the consolidated financial position and
the operating results and cash flow information of Murray &
Roberts Holdings Limited (the company), its subsidiaries, its
interest in joint ventures, and its interest in associates. |
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| Subsidiaries |
Subsidiaries are entities, including special purpose entities such as
The Murray & Roberts Trust, controlled by the Group. Control exists
where the Group, directly or indirectly, has the power to govern the
financial and operating policies so as to obtain benefits from its
activities generally accompanying an interest of more than one-half
of the voting rights. In assessing control, potential voting rights that
presently are exercisable or convertible are taken into account.
Subsidiaries are never excluded from consolidation. If a subsidiary
is acquired but control is expected to be temporary because
the intention is that the subsidiary will be sold within
12 months from acquisition, the acquired subsidiary is still
consolidated but is accounted for as a disposal group or a
discontinued operation.
The results of subsidiaries are included for the period during
which the Group exercises control over the subsidiary.
If a subsidiary uses accounting policies other than those adopted
in these consolidated financial statements for like transactions
and events in similar circumstances, appropriate adjustments
are made to its financial statements in preparing the
consolidated financial statements.
Inter-company transactions, balances and unrealised gains
on transactions between group companies are eliminated.
Unrealised losses are also eliminated but considered an
impairment indicator of the asset transferred.
Minority interests in the net assets of consolidated subsidiary
companies are identified separately from the Group's equity
therein. Minority interests consist of the amount of those interests
at the date of the original business combination and the
minority's share of changes in equity since the date of the
combination. Losses applicable to the minority in excess of the
minority's interest in the subsidiary company's equity are
allocated against the interests of the Group except to the extent
that the minority has a binding obligation and is able to make an
additional investment to cover the losses. |
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| Joint ventures |
Joint ventures are contractual agreements where the Group and
other parties undertake an economic activity that is subject to
joint control, and where the strategic financial and operating policy decisions relating to the activities require the unanimous
consent of the parties sharing control. These joint ventures
may take the form of jointly controlled operations such as
construction contracts, jointly controlled assets, jointly controlled
partnerships or companies.
Joint ventures are accounted for by means of the proportionate
consolidation method whereby the Group's share of the assets,
liabilities, income, expenses and cash flows of joint ventures
are included on a line by line basis in the consolidated
financial statements.
The results of joint ventures are included for the period during
which the Group exercises joint control over the joint venture.
If a joint venture uses accounting policies other than those
adopted in these consolidated financial statements for like
transactions and events in similar circumstances, appropriate
adjustments are made to its financial statements in preparing
the consolidated financial statements.
Where the Group transacts with its jointly controlled entities,
unrealised profits and losses are eliminated to the extent of the
Group's interest in the joint venture, except where unrealised
losses provide evidence of an impairment of the assets. |
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| Associates |
Companies in which the Group actively participates in the
commercial and financial policy decisions and thereby exercises
a significant influence, and which are not classified as subsidiaries
or joint ventures, are regarded as associates.
The Group's share of the results of these companies is included
in the consolidated financial statements using the equity
method. Attributable earnings since acquisition, less dividends
received, are added to the carrying value of the investments in
these companies.
The Group's interest in associate companies is carried in the
balance sheet at an amount that reflects its share of the net
assets and the portion of goodwill on acquisition.
Where objective evidence of impairment exists, the carrying
value of the investment in an associate (including any goodwill)
is assessed against its recoverable amount, and written down to
the expected recoverable amount, where applicable.
The results of associates are included for the period during which
the Group exercises significant influence over the associate.
If an associate uses accounting policies other than those
adopted in these consolidated financial statements for like
transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in preparing
the consolidated financial statements.
Where the Group transacts with an associate, unrealised profits
and losses are eliminated to the extent of its interest in the
associate, except where unrealised losses provide evidence of
an impairment of the asset.
The Group considers the carrying value of its investment in the
equity of the associate and its other long-term interests in the
associate, such as equity loans, when recognising its share of
losses of the associate.
Adjustments are made to the carrying value of the investment
for any changes in the equity of the associate that have not been
recognised in its income statement. Such changes include those
arising from the revaluation of property, plant and equipment and
from foreign exchange translation differences. The Group's share
of those changes is recognised directly in equity. |
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| Stand-alone company’s financial statements |
| In the stand-alone accounts of the company, the investment in
a subsidiary company is carried at cost less accumulated
impairment losses, where applicable. |
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