The summarised annual financial statements for the year ended 31 March 2011 have been prepared in accordance with IAS 34 and International Financial Reporting Standards (IFRS), the requirements of the South African Companies Act No 61 of 1973, and in compliance with the Listings Requirements of the JSE Limited. Except as noted below, accounting policies used are consistent with those applied in the previous annual financial statements and IFRS. These results have been audited by the company’s auditor, PricewaterhouseCoopers Inc., whose unqualified report is available for inspection at the registered office of the company.

The group adopted the following new standards and amendments for the year ended 31 March 2011:

• IAS 7 “Statement of Cash Flows” has been amended and now requires changes in interests in a subsidiary that do not result in a loss of control to be recorded in financing activities as opposed to investing activities. This amendment is effective retrospectively, resulting in the restatement of the statement of cash flows. Preference dividends received are now recorded in investing activities as opposed to financing activities.
  The total amount reallocated to investing activities was R404m for the year ended 31 March 2010.
• IFRS 3 Revised “Business Combinations” and IAS 27 Revised “Consolidated and Separate Financial Statements” were adopted. The effect of these standards is recorded in the line item “Gains on acquisitions and disposals” on the income statement. These items are adjusted for in the calculation of headline and core headline earnings.

The MWEB business is now reported in the pay-television rather than the internet segment. It is working on technologies to deliver video content. Comparative segmental results have been restated in accordance with IFRS 8 “Operating Segments”.

Our share of associates’ other comprehensive income and reserves relates mainly to the revaluation of the associates’ available-for-sale investments.

Core headline earnings exclude once-off and non-operating items. We believe that it is a useful measure for shareholders of the group’s sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies.