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35.
RELATED PARTIES
Identification of related parties
The group has a related-party relationship with its subsidiaries and associates. Key management personnel has been defined as the
executive and non-executive directors of the company. The definition of key management includes the close members of family of key
management personnel and any other entity over which key management exercises control. Close members of family are those family
members who may be expected to influence or be influenced by that individual in their dealings with the group. They may include the
individual’s domestic partner and children, the children of the individual’s domestic partner, and dependants of the individual or the
individual’s domestic partner.
Transactions with key management personnel
Directors’ remuneration in total, paid by a subsidiary, is included in note 3. Details pertaining to executive and non-executive directors’
compensation are set out in the directors’ report.
The group encourages its employees to purchase food products from group companies. These transactions are generally conducted
on terms similar to those entered into with third parties, although in some cases nominal discounts are granted. Transactions with key
management personnel are conducted on similar terms. No abnormal or non-commercial credit terms are allowed, and no impairments
were recognised in relation to any transactions with key management personnel during the year, nor have they resulted in any non-
performing debts at the year-end.
Similar policies are applied to key management personnel at subsidiary level who are not defined as key management personnel at the
group level.
Transactions with related parties
2017
R’000
2016
R’000
Outstanding advances due at year-end by associates (note 17)
101 098
37 696
Total value of revenue received from associates
11 462
7 656
Amounts due by associates included in trade receivables
804
962
Total value of inventory purchased from associates
911 657
889 989
Total value of services purchased from associates
661
6 576
Amounts due to associates included in trade payables
96 724
98 111
Total value of revenue received from jointly controlled entity
555
–
Property rental income from jointly controlled entity
2 526
–
Details of effective interest, investments and loans to associates are disclosed in note 17.
36.
ACCOUNTING ESTIMATES AND JUDGEMENTS
The board of directors has considered the group’s accounting policies, key sources of uncertainty and areas where accounting judgements
were required in applying the group’s accounting policies.
Accounting policies
The group audit and risk committee is satisfied that the accounting policies are appropriate to the group.
129
Annual integrated report 2017
Bid Corporation Limited