Pick n Pay Annual Report 2010

 

Notes to the annual financial statements

for the year ended 28 February 2010

 

31. 31.1 Prior year adjustments
Change in accounting policy

The Group has revised its accounting policy in accounting for actuarial gains and losses recognised in terms of IAS 19: Employee Benefits. Previously all actuarial gains and losses on defined-benefit funds were recognised immediately in profit for the year. The Group’s policy is to now recognise actuarial gains and losses in other comprehensive income as incurred in accordance with IAS 19. The effects of the prior year adjustment on the statement of comprehensive income and balance sheet are shown below. 

IAS 1 requires a third balance sheet to be presented as at the beginning of the earliest comparative period following a change in accounting policy. No third balance sheet has been presented as this change did not affect any balance sheet disclosure.

      GROUP  
    February  
2009  
as  
previously  
stated  
Rm  
Change in  
accounting  
policy  
Rm  
February  
2009  
as restated  
Rm  
  Statement of comprehensive income      
  Employee costs (4 624.0)  9.0   (4 615.0) 
  Profit before tax 1 734.8   9.0   1 743.8  
  Tax (568.0)  (2.5)  (570.5) 
  Profit for the year from continuing operations 1 166.8   6.5   1 173.3  
  Profit for the year 1 048.3   6.5   1 054.8  
  Other comprehensive income (98.8)  (6.5)  (105.3) 
  Total comprehensive income for the year 949.5   —   949.5  
   
31.2 Prior period error

In the 2009 financial year, the Company did not recognise a dividend received from another entity within the Group in error. As intercompany dividends are eliminated on consolidation, the only effect of this error is in the Company. The effects of the prior period error on the statement of comprehensive income and balance sheet are shown below.

      COMPANY  
    February
2009
as
previously
stated
Rm
Prior period
error
Rm
February
2009
as restated
Rm
  Statement of comprehensive income      
  Dividends received 774.2 4.5 778.7
  Profit before tax 772.6 4.5 777.1
  Tax
  Profit for the year 772.6 4.5 777.1
  Total comprehensive income for the year 772.6 4.5 777.1
  Balance sheet      
  Interest in subsidiaries 257.8 4.5 262.3
  Accumulated profits 130.0 4.5 134.5

 

 

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