PRIOR YEAR ADJUSTMENTS

Discontinued operation
The Group has committed to the closure of its subsidiary, Score Supermarkets Operating Limited (Score). Please refer to note 18 for further detailed information. The 2008 income statement has been restated and has been presented as if the Score operation had been discontinued from the start of the 2008 financial year.

Changes in accounting policy
The Group has reviewed its interpretation of certain principles of International Financial Reporting Standards in respect of the classification of incentive income and inventory valuation. The changes detailed below ensure reporting is consistent with the principles and guidelines of International Financial Reporting Standards.

Advertising recoveries, net of related advertising expenditure, and sales-based volume and other rebates received from suppliers, previously disclosed in “other trading income” and “trading expenses” respectively, are now included within cost of sales. This change in interpretation has had an impact on the balance sheet, with rebates received and advertising recoveries in excess of spend, now being taken into account in the valuation of inventory.

Correction of error
At 28 February computer hardware assets with a cost of R31.4 million were incorrectly included as part of intangible assets (software development). This amount has been reallocated to property, equipment and vehicles and the comparative numbers restated accordingly.