ECDC_Annual Report_2011

Page 171

Notes to the Consolidated financial statements

accounts payable approximated their fair values due to the short-term maturities of these assets and liabilities. Unlisted shares carried at fair value During 2009/10, the Corporation’s investment in Singisi Forest Products was revalued to its fair value of R 25 million. The minority shareholding in Singisi Forest Products (Pty) Ltd has been valued using the projected dividends receivable from free cash flows (excess cash). The downturn in the world economy coupled with continuing low foreign exchange rates and closer to home, the local building industry (residential market) also having experienced a downswing, has resulting in an oversupply of lumber in the national market. Group Figures in Rand thousand

2011

2010

Company 2009

2011

2010

2009

36. FINANCIAL INSTRUMENTS AT FAIR VALUE (CONTINUED) This affected the company revenue’s negatively experiencing both a volume and price reduction which has resulted in the marked movement in the valuation from 2009. Unlisted shares carried at cost In accordance with the accounting policy on available-for-sale financial assets, certain unlisted shares are carried at cost as their fair values could not be reliably determined, due to a lack of an active market for these instruments. Held to maturity investments, loans advanced and interest bearing borrowings The fair values of these financial instruments are determined based on discounted cash flow techniques, taking account of market related discount rates appropriate to the instrument and economic conditions current at the balance sheet date. At this date, the fair value of the financial instruments approximated their carrying values.

37. Other comprehensive income Components of other comprehensive income - Group - 2011 Balance Available-for-sale financial assets adjustments Closing balance

24,173

Opening balance

(24,173) -

Movements on revaluation Closing balance

254,142

Opening balance

(327,108) (72,966)

Components of other comprehensive income - Group - 2010 Available-for-sale financial assets adjustments Closing balance Opening balance

24,173 (74,173) (50,000)

Movements on revaluation

TOGETHER, LOOKING FORWARD WITH RENEWED CLARITY ECDC Annual Report 2010/11

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