32 CUSTOMER LOYALTY PROGRAMMES

The Group operates a customer loyalty programme in terms of which it undertakes to provide goods and services to certain customers. The reward credits are accounted for as a separately identifiable component of the fee and commission income transactions of which they form a part. The consideration allocated to the reward credits is measured at the fair value of the reward credit and recognised over the period in which the customer utilises the reward credits.

Expenses relating to the provision of the reward credits are recognised as an expense as they are incurred.

33 SERVICE CONCESSION ARRANGEMENTS

Service concession arrangements are recognised if the Group acts as an operator in the provision of public services. Where the Group has a contractual right to recover the amount receivable in respect of the arrangements from the government organisation the amount receivable is classified as a financial asset and is accounted for in terms of the Group’s policy for financial assets. Alternatively, where the Group is entitled to collect the monies for usage from the public the Group recognises an intangible asset. The intangible asset is measured in accordance with the Group’s policy for intangible assets and amortised over its useful life. Fee income earned from public usage is included in fee and commission income as it is receivable.

34 RESTATEMENT OF PRIOR YEAR NUMBERS

During the financial year, the following balance sheet and income statement reclassifications were made mainly as a result of enhanced processes and systems adopted within Momentum Group:

  Amount as  
previously  
reported  		 Amount as  
restated  		 Difference     Explanation  
30 June 2008
Income statement  		          
Interest and similar income   55 009   54 993   (16)    Consolidation of funds previously fair valued.  
Non interest income   22 471   22 490   19     Refer above.  
Operating expenses   (26 189)  (26 192)  (3)    Refer above.  
Profit for the year   13 033   13 033   –     Restatements had no impact on profit for the year.  
Balance sheet
Assets  		          
Cash and short term funds   48 486   53 555   5 069     Consolidation of funds previously fair valued.  
Derivative financial instruments   64 314   57 106   (7 208)    Offset criteria in IAS 32 has been met.  
Investment securities and other investments   214 353   220 105   5 752     Offset criteria in IAS 32 has not been met.  
Accounts receivable   8 093   7 806   (287)    Consolidation of funds previously fair valued.  
Policy loans on insurance contracts   212   772   560     Offset criteria in IAS 32 has not been met.  
Liabilities            
Derivative financial instruments   51 595   46 595   (5 000)    Offset criteria in IAS 32 has been met.  
Creditors and accruals   13 051   16 836   3 785     Net adjustment relating to offset criteria not being met and consolidation of certain funds previously fair valued.  
Policyholder liabilities under investment contracts   110 784   111 344   560     Offset criteria in IAS 32 has not been met.  
Liabilities arising from collective investment schemes   2 742   7 283   4 541     Consolidation of funds previously fair valued.  
Total equity   51 066   51 066   –     Restatements had no impact on the net asset value.  
Cash flow statement   
As a consequence of the above restatements, the cash flow statement has been accordingly restated.