RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS
Presentationof Financial Statements
The holding company, RCS Investment Holdings Limited, is a
company domiciled in SouthAfrica. The consolidated financial
statements as at and for the period ended 31 December 2015
comprise the company, its subsidiaries and its associates
(together referred to as the “RCS Group”). The company has
foreign subsidiaries operating in Namibia and Botswana.
The consolidated financial statements are prepared in
accordancewith International Financial Reporting Standards
(IFRS) and the requirements of the Companies Act of South
Africa. The accounting policies have been consistently
applied with those adopted in the prior financial period.
During the current financial period, the financial year has
changed from 31 March to 31 December to align with the
reporting requirements of the shareholder. The current
period financial results are therefore only representative of
a 9 month period. The current and prior period results are
therefore not comparable.
1.1 Basis of Preparation
The consolidated financial statements have been prepared
on the basis that the RCS Group is a going concern and on
the historical cost basis.
The consolidated financial statements were authorised for
issue by the board of directors on 22 April 2016.
1.2 Functional and Presentation Currency
These consolidated financial statements are presented in
South African Rands which is RCS Investment Holdings
Limited’s functional and presentation currency. All amounts
have been rounded to the nearest thousand, unless otherwise
1.3 Basis of Consolidation
The financial statements of subsidiaries are prepared for a
consistent reporting period using consistent accounting policies.
Business combinations are accounted for using the acquisition
method as at the acquisition date, which is the date on which
control is transferred to the group.
The group controls an entity when the group is exposed to,
or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through
its power over the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the group.
They are consolidated until the date that control ceases.
The group measures goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interest in
the acquiree; plus
• if the business combination is achieved in stages, the fair
value of the pre-existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the
identifiable assets acquired and liabilities assumed.
When the excess is negative, a gain on bargain purchase is
recognised immediately in the income statement.
The consideration transferred does not include amounts
related to the settlement of pre-existing relationships. Such
amounts generally are recognised in profit or loss.
Transaction costs, other than those associated with the issue
of debt or equity securities, that the group incurs in connection
with a business combination are expensed as incurred.
Any contingent consideration payable is measured at fair
value at the acquisition date. If the contingent consideration is
classified as equity it is not remeasured. Otherwise, subsequent
changes in the fair value of the contingent consideration are
recognised in profit or loss.
for the period ended 31 December 2015