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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
117
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
For the year ended 31 May 2014
Blue Label Telecoms Limited (the Company) and its subsidiaries, joint ventures and associates (together referred to
as the Group) are involved in the procurement, selling and distribution of prepaid products for, inter alia, fixed and
mobile networks and all business ancillary thereto.
The annual financial statements comprise the consolidated financial statements of the Group and the stand-alone
financial statements of the Company and were authorised by the board of directors, as indicated on page 97.
1.
SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
The principal accounting policies applied in the preparation of these Group annual financial statements are
set out below in the related notes and are consistent with those adopted in the prior year, unless otherwise
specified.
The financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by Financial Reporting Standards Council, the JSE Listings
Requirements and the Companies Act, No 71 of 2008.
The term IFRS includes International Financial Reporting Standards (IFRS), International Accounting Standards
(IAS) and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) or
the former Standing Interpretations Committee (SIC). The standards referred to are set by the International
Accounting Standards Board (IASB).
Basis of preparation
The annual financial statements and Group financial statements are prepared under the historical cost
convention, except for certain financial and equity instruments which have been measured at fair value.
Amounts are rounded to the nearest thousand with the exception of earnings per share, ordinary share
capital and equity compensation benefit. The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable
under the circumstances. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of IFRS that have a significant effect on the financial
statements and estimates with a significant risk of material adjustment in the next year are discussed in
note 2.
Going concern
The Group and Company’s forecasts and projections, taking account of reasonably possible changes in
trading performance, show that the Group and Company should be able to operate within its current
funding levels.
After making enquiries, the directors have a reasonable expectation that the Group and Company have
adequate resources to continue in operational existence for the foreseeable future. The Group and Company
therefore continue to adopt the going-concern basis in preparing the financial statements.