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TRANSITION to IFRS – Group continued

R’000 1. Share-based payment expenses – BEE This represents the amount expensed in respect of shares issued in terms of the BEE transaction concluded during June 2005. Amount expensed in respect of 19 500 000 ordinary shares issued Amount expensed in respect of 17 600 000 preference shares issued

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The amount expensed in respect of the ordinary shares was expensed in terms of IFRS 2, Share-based Payment. The amount expensed in respect of the preference shares was expensed in terms of IAS 32, Financial Instruments: Presentation. IAS 32 requires compound instruments, such as convertible preference shares, to be split into an equity and a liability component. In addition, the latest version of IAS 32 requires the instruments to be fair-valued before such a split is made. This necessitated an adjustment to the value of the liability component of the preference share previously recognised under SA GAAP. 2. Share-based payment expenses – employees This represents the amount expensed in terms of IFRS 2, Share-based Payment in respect of share options awarded to employees after 7 November 2002, that had not yet vested by 1 January 2005. Further information on the share-based payment expenses relating to employees is provided in note 16. 3. Intangible assets and amortisation IFRS 1, First-time adoption of IFRS, requires that IAS 38, Intangible Assets should be applied retrospectively. This requires the Group to recognise all intangible assets that had previously been recognised in the Group’s financial statements and that meet the recognition and measurement criteria of IAS 38. The Group had previously written certain items of intellectual property off against share premium and reserves. These items were thus required to be reinstated. IAS 38 also requires the useful lives of intangible assets to be reviewed at least annually. This has also given rise to some adjustments in the carrying values of intangible assets and the amortisation charge. 4. Property, plant and equipment and depreciation IAS 16, Property, plant and equipment differs from the previous version of AC 123, Property, plant and equipment in a number of ways. The most important of these are the following: • The residual value of an asset is measured as the amount the entity estimates it would receive for the asset if the asset were already of the age and the condition expected at the end of its useful life. The old AC 123 based the residual value on the amount an entity would expect to realise for the asset at the end of its useful life; and • The useful lives and residual values of items of property, plant and equipment are required to be re-assessed on at least an annual basis. The old AC 123 required this on a periodic basis. 5. Other income statement adjustments This line-item includes various non-material items such as the effect of straight-lining of leases and the effect of differences in the treatment of embedded derivates under SA GAAP and IFRS. 6. Investment property This relates to a re-classification of investment property to property, plant and equipment.

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Aspen Annual Report 2006

Profile for Aspen Holdings

Aspen Annual Report 2006  

Aspen Annual Report 2006