| for the year ended 31 December 2008 |
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| Intangible assets |
| Goodwill |
Goodwill represents the future economic benefits arising from assets that are not capable of being individually identified and separately
recognised in a business combination and is determined as the excess of the cost of acquisition over the group’s interest in the net fair value
of the identifiable assets, liabilities and contingent liabilities of the subsidiary, associate or joint venture recognised at the date of acquisition.
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the group’s cash-generating units expected to benefit from the
synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the
carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and
then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. Any impairment loss recognised
for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of goodwill is included in the determination of the
profit or loss on disposal.
Goodwill arising on acquisitions before the date of transition to IFRS has been retained at the previous SA GAAP amounts subject to being
tested for impairment at that date.
If, on a business combination, the fair value of the group’s interest in the identifiable assets, liabilities and contingent liabilities exceeds the
cost of acquisition, this excess is recognised in profit or loss immediately. |
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| Other intangible assets |
An intangible asset is an identifiable non-monetary asset without physical substance. It includes purchased long-term contracts, and certain
costs of purchase and installation of major information systems (including packaged software).
Intangible assets acquired separately are initially recognised at cost or at fair value if acquired as part of a business combination. If assessed
as having an indefinite useful life, it is not amortised but tested for impairment annually and impaired if necessary. If assessed as having a
finite useful life, it is amortised over their useful lives using a straight-line basis, and tested for impairment if there is an indication that they
may be impaired. |
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| Deferred taxation assets and liabilities |
Deferred taxation is recognised using the balance sheet liability method for all temporary differences, unless specifically exempt, at the
taxation rates that have been enacted or substantially enacted at the balance sheet date.
A deferred taxation asset represents the amount of income taxes recoverable in future periods in respect of deductible temporary
differences, the carry forward of unused taxation losses and the carry forward of unused taxation credits (including unused credits for
secondary taxation on dividends). Deferred taxation assets are only recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised.
A deferred taxation liability represents the amount of income taxes payable in future periods in respect of taxable temporary differences.
Deferred taxation liabilities are recognised for taxable temporary differences, unless specifically exempt.
Deferred taxation assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other
than in a business combination) of other assets and liabilities in a transaction that affects neither taxable income nor accounting profit.
Deferred taxation assets and liabilities are offset when there is a legally enforceable right to offset current taxation assets against current
taxation liabilities and it is the intention to settle these on a net basis. |
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| Loans and advances |
Advances designated as loans and receivables are recognised at amortised cost using the effective interest rate method less any
impairment. Fixed rate advances which have been hedged are held at fair value through profit and loss and are remeasured to fair value
through the income statement at each subsequent reporting date.
Exposures are considered past due where the facility has expired and the Bank is not considering renewal of the facility or where expected
cash flows on the facility are more than one month in arrears. Past due exposures are considered impaired and a specific
provision/impairment amount is raised based on the carrying amount less the expected realisable value of the security held, but as a
minimum the amount should be equivalent to the regulatory requirement.
Advances are assessed for indicators of impairment and impairments are accounted for when there is objective evidence that the estimated
future cash flows from the assets/advances have been negatively impaired by events occurring subsequent to initial recognition. The amount
of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted
at the original effective interest rate. Advances considered to be irrecoverable are written off to the extent that the loss can be reliably measured. |
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| Non-current assets held for sale |
Non-current assets or disposal groups are classified as held for sale if the carrying amount will be recovered principally through sale rather
than through continuing use. This condition is regarded as met only when the sale is highly probable, the assets or disposal group are
available for immediate sale in its present condition and management is committed to the sale, which should be expected to qualify for
recognition as a completed sale within one year from the date of the classification.
Immediately prior to being classified as held for sale, the carrying amount of assets and liabilities are measured in accordance with the
applicable standard. After classification as held for sale it is measured at the lower of the carrying amount and fair value less costs to sell
and therefore not depreciated. An impairment loss is recognised in profit or loss for any initial and subsequent write-down of the asset and
disposal group to fair value less costs to sell. A gain for any subsequent increase in fair value less costs to sell is recognised in profit or loss
to the extent that it is not in excess of the cumulative impairment loss previously recognised.
Non-current assets or disposal groups that are classified as held for sale are not depreciated. |
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| Inventories |
Inventories are assets held for sale in the ordinary course of business, in the process of production for such sale or in the form of materials
or supplies to be consumed in the production process or in the rendering of services.
Inventories which include merchandise, bunkers on board ships and other consumable stores are valued at the lower of cost and net
realisable value. Cost is determined on a weighted average and first-in-first-out basis. Spares on board ships are charged against income
when issued to the ships.
When inventories are sold, the carrying amount is recognised as part of cost of sales. Any write-down of inventories to net realisable value
and all losses of inventories or reversals of previous write-downs or losses are recognised in cost of sales in the period the write-down, loss
or reversal occurs.
Agricultural and other commodities are valued at fair value less costs to sell. When such inventories are measured at fair value less costs to
sell, changes in fair value less costs to sell are recognised in profit or loss in the period of the change. |
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| Financial assets |
A financial asset is an asset that is cash, an equity instrument of another entity, a contractual right to receive cash or another financial asset
from another entity, or to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable
to the entity.
Financial assets are initially measured at fair value plus transaction costs. However, transaction costs in respect of financial assets
designated as held at fair value through profit or loss are expensed.
Investments classified as held-to-maturity financial assets are measured at amortised cost less any impairment losses recognised to reflect
irrecoverable amounts.
Financial assets are accounted for at fair value through profit or loss where the financial asset is either classified as held for trading or is
designated as held at fair value through profit or loss and are carried at fair value with any gains or losses being recognised in profit or loss.
Fair value, for this purpose, is market value if listed or a value arrived at by using appropriate valuation models if unlisted.
Investment banking portfolio assets are classified as held for trading and are recognised on a settlement basis. These investments are initially
measured at cost, including transaction costs, and are remeasured to fair value at each subsequent reporting date. Changes in fair value
are recognised in the profit or loss when they arise.
Trade and other receivables are classified as loans and receivables and are measured at amortised cost less provision for doubtful debts,
which is determined as set out under impairment of assets below. Items with extended terms are initially recorded at the present value of
future cash flows and interest income is accounted for over the term until payment is received. Write-downs of these assets are expensed
in profit or loss.
Other investments are classified as available-for-sale financial assets. These investments are carried at fair value with any gains or losses
being recognised directly in equity. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss
previously recognised in equity is included in profit or loss for the period. Fair value, for this purpose, is market value if listed or a value arrived
at by using appropriate valuation models if unlisted.
Derivatives that are assets are measured at fair value, with changes in fair value being included in profit or loss other than derivatives
designated as cash flow hedges. The fair value of derivative assets is classified as non-current assets if the remaining maturity of the
instruments are more than, and they are not expected to be realised within, 12 months.
Cash and cash equivalents are measured at fair value, with changes in fair value being included in profit or loss.
Derivatives embedded in other financial instruments or other non-financial host contracts are treated as separate derivatives when their risk
and characteristics are not closely related to those of the host contract and the host contract is not designated as held at fair value through
profit or loss. |
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| Financial liabilities |
A financial liability is a liability that is a contractual obligation to deliver cash or another financial asset to another entity or to exchange
financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity.
Financial liabilities are initially measured at fair value plus transaction costs. However, transaction costs in respect of financial liabilities
designated as held at fair value through profit or loss are expensed.
Financial liabilities are accounted for at fair value through profit or loss where the financial liability is either held for trading or it is designated
as held at fair value through profit or loss.
Non-derivative financial liabilities that are not designated on initial recognition as financial liabilities held at fair value through profit or loss or
classified as held for trading are measured at amortised cost. Items with extended terms are initially recorded at the present value of future
cash flows. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised
over the term of the borrowings in accordance with the accounting policy for borrowing costs (see accounting policy below).
Non-derivative financial liabilities that are designated on initial recognition as financial liabilities held at fair value through profit or loss or
classified as held for trading are measured at fair value, with changes in fair value being included in net profit or loss.
Derivatives embedded in other financial instruments or other non-financial host contracts are treated as separate derivatives when their risk
and characteristics are not closely related to those of the host contract and the host contract is not designated as held at fair value through
profit or loss. |
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| Employee benefit obligations |
The group operates a defined benefit pension plan as well as two defined contribution provident funds.
Current contributions to the group’s defined contribution funds are charged against income when incurred. The cost of providing benefits
to the group’s defined benefit plan and the obligation in respect of post-retirement medical aid are determined and provided using the
projected unit credit actuarial valuation method. Contribution rates to the defined benefit plan are adjusted for any unfavourable experience
adjustments. Favourable experience adjustments are retained within the fund. Actuarial surpluses are brought to account in the group’s
financial statements only when it is clear that economic benefits will be available to the group.
The group’s estimated liability in respect of post-retirement medical benefits has been fully provided for in the balance sheet.
The group operates a share option scheme. The proceeds on share options are credited to share capital when exercised.
The expected cost of profit-sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to
make such payments as a result of past performance. |
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| Provisions |
| Provisions are recognised when the group has a present legal or constructive obligation, as a result of past events, for which it is probable
that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made for the amount of the
obligation.Provisions are measured at the expenditure required to settle the present obligation. Where the effect of discounting is material, provisions
are measured at their present value using a pre-tax discount rate that reflects the current market assessment of the time value of money
and the risks for which future cash flow estimates have not been adjusted. |
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| Onerous contracts |
| Full provision is made for the present obligations of the unavoidable future costs of fulfilling the terms of onerous ship charter contracts or
contracts of affreightment to which the group is committed. |
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| Equity |
| Debt and equity instruments are classified as either financial liabilities or as equity based on the substance of the contractual arrangement.
Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. |
