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05
Group financial statements
Notes to the condensed consolidated
annual financial statements
for the year ended 31 March 2017
1 Corporate information
TelkomSouth Africa SOC Limited (Telkom) is a company incorporated and domiciled in the Republic of South Africa (South Africa) whose
shares are publicly traded. The main objective of theTelkomgroup is to supply telecommunication, multimedia, technology, information
and other related information technology services to the group customers, as well as mobile communication services, in Africa.
2 Basis of preparation and accounting policies
2.1 Basis of preparation
The condensed consolidated annual financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and
in compliance with the Listings Requirements of the JSE Limited, the South African Companies Act, 2008, as amended,
the SAICA Financial Reporting Guide as issued by the Accounting Practices Committee and the Financial Reporting Standards Council.
The condensed consolidated annual financial statements are disclosed in South African Rand, which is also the group’s presentation
currency. All financial information presented in Rand has been rounded off to the nearest million.
The condensed consolidated annual financial statements are prepared on the historical cost basis, with the exception of certain financial
instruments initially (and sometimes subsequently) measured at fair value. Details of the group’s significant accounting policies are
consistent with those applied in the previous financial year except for those listed below.
Significant accounting judgements, estimates and assumptions
In preparing these condensed consolidated annual financial statements, the significant judgements made by management in applying
the group’s accounting policies and the key sources of estimation uncertainty were consistent with those applied to the consolidated
financial statements for the year ended 31 March 2016 except for the changes in note 2.2, note 4 and the assumptions used to calculate
the deferred tax asset inTelkom company.
Significant accounting policies
The condensed consolidated annual financial statements have been prepared in accordance with the accounting policies adopted in the
group’s last annual financial statements for the year ended 31 March 2016, except for the adoption of the amendments, new standards
and changes in accounting policies as described in note 2.2.
The following new standards and amendments to standards have been early adopted.
Standard(s), Amendment(s)
Salient feature of the changes
Effective
date
IFRS 12 Disclosure of Interests in Other Entities
Amendment clarifying the scope of IFRS 12 with respect to
interests in entities classified as held for sale in accordance
with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations. This amendment has been adopted and has no impact
on the group.
1 January
2017
IAS 12 Recognition of Deferred Tax Assets for
Unrealised Losses
The amendments clarify that an entity needs to consider whether
tax law restricts the sources of taxable profits against which it may
make deductions on the reversal of that deductible temporary
difference. Furthermore, the amendments provide guidance on
how an entity should determine future taxable profits and explains
in which circumstances taxable profit may include the recovery of
some assets for more than their carrying amount.
These amendments have been adopted and do not have an impact
on the group.
1 January
2017
The group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.