NOTES TO THE GROUP FINANCIAL STATEMENTS

Note 1 - Significant accounting policies Note 2 - Revenue Note 3 - Profit before tax Note 4 - Directors' remuneration Note 5 - Share-based payments Note 6 - Tax Note 7 - Basic, headline and diluted earnings per share Note 8 - Dividends Note 9 - Intangible assets Note 10 - Property, plant and equipment Note 11 - Operating leases Note 12 - Participation in export partnerships Note 13 - Deferred tax assets Note 14 - Investment in associate Note 15 - Loans Note 16 - Inventory Note 17 - Trade and other receivables Note 18 - Net cash and cash equivalents Note 19 - Share capital Note 20 - Treasury shares Note 21 - Borrowings Note 22 - Retirement benefits Note 23 - Trade and other payables Note 24 - Provisions Note 25 - Commitments Note 26 - Operating segments Note 27 - Related party transactions Note 28 - Financial instruments Note 29 - Change in financial period cut
off date Note 30 - Non-controlling interest Note 31 - Early adoption and other reclassifications Note 32 - Accounting standards and interpretations to be adopted in future periods

Pick n Pay Group of Companies financial statements
Notes to the Group financial statements
for the period ended

31.   Early adoption and other reclassifications  
31.1   Early adoption  
  The amendments to IAS 36 Impairment of Assets, effective 1 January 2014, has been early adopted by the Group. Amendments to the standard requires recoverable amounts to be disclosed only when an impairment loss has been recognised or reversed. This had no material impact on the reported result and all related disclosure has been amended in the 2014 integrated annual report.  
   
31.2   Reclassifications  
  Other trading income  
  During the period under review, trading income previously included under cost of merchandise sold has been reclassified and disclosed separately. This has been done to improve visibility of all other trading income, specifically commissions received. The prior year has been restated to align with the current year disclosures. Refer to note 2.  
      Pick n Pay Stores Group and Pick n Pay Holdings Group
      364 days to  
2 March  
2014  
Rm  		 368 days to  
3 March  
2013  
Rm  		 Adjustment  
Rm  		 368 days to  
3 March  
2013  
As previously  
stated  
Rm  
  Other trading income     500.6   518.9   174.5   344.4  
  Franchise fee income     311.2   321.5   37.5   284.0  
  Operating lease income     77.8   75.8   15.4   60.4  
  Commissions and other income     111.6   121.6   121.6   —  
  Provisions  
  In order to improve disclosure, provisions previously included under trade and other payables are now presented separately.
  Refer to notes 11, 16, 24 and 26 for further restatements in order to improve disclosure.