| |
|
|
GROUP |
| |
|
|
2011 |
|
|
2010 |
| 11. |
Investment in associate |
Country |
|
Ownership |
|
|
Ownership |
| |
The Group has the following investment in an associate: |
|
|
|
|
|
| |
TM Supermarkets (Pvt) Limited |
Zimbabwe |
|
25% |
|
|
25% |
| |
|
|
|
|
|
|
|
| |
|
|
Rm |
|
|
Rm |
| |
At 1 March |
|
— |
|
|
— |
| |
Gain on recognition of investment |
|
7.5 |
|
|
— |
| |
Current share of profit |
|
2.4 |
|
|
— |
| |
At 28 February |
|
9.9 |
|
|
— |
| |
Comprising: |
|
|
|
|
|
| |
Gain on recognition of investment |
|
7.5 |
|
|
— |
| |
Share of post-acquisition profits |
|
2.4 |
|
|
— |
| |
Summary of financial information of TM Supermarkets (Pvt) Limited – now presented in US dollars |
|
100% |
|
|
100% |
| |
|
|
|
|
|
|
| |
|
|
US$m |
|
|
US$m |
| |
Assets |
|
44.8 |
|
|
24.5 |
| |
Liabilities |
|
38.4 |
|
|
20.6 |
| |
Equity – non-distributable reserves |
|
9.0 |
|
|
9.2 |
| |
– distributable reserves |
|
(2.4) |
|
|
(5.3) |
| |
Turnover |
|
225.6 |
|
|
148.4 |
| |
Profit/(loss) for the year |
|
1.7 |
|
|
(4.6) |
| |
In prior years the Group’s investment in TM Supermarkets (Pvt) Limited was impaired to nil due to the uncertain economic, political and social climate in Zimbabwe and our inability to remit dividends from that country. In the 2010 financial year the coalition government was in its infancy and therefore the reversal of impairments previously recorded was not considered appropriate. |
| |
In the current financial year, given the improving economic conditions in Zimbabwe, we believe it is now appropriate to recommence the equity accounting for TM Supermarkets. As the figures previously recorded are historic and based on information prior to the dollarisation, we believe it is more appropriate to restart equity accounting on a basis consistent with that applied in the dollarised financial statements. As a result, a new cost has been recorded at the fair value of Pick n Pay’s investment in TM Supermarkets. Equity accounting has been applied to this new cost from the beginning of the current year. Prior year cost and impairment reserves have been written off. |
