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FINANCIAL OVERVIEW
Independent auditor’s report
To the shareholders of Bid Corporation Limited
Report on the audit of the consolidated and separate financial statements
Opinion
We have audited the consolidated and separate financial statements of Bid Corporation Limited (the group and company) set out on pages 76
to 146, which comprise the consolidated and separate statements of financial position at June 30 2017, and the consolidated and separate
statements of profit or loss and consolidated and separate statements of other comprehensive income, the consolidated and separate statements
of changes in equity and the consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and
separate financial statements, including a summary of significant accounting policies and the directors’ remuneration on pages 59 to 61.
In our opinion, the consolidated and separate financial statements present fairly, in all material respects the consolidated and separate financial
position of Bid Corporation Limited at June 30 2017, and its consolidated and separate financial performance and consolidated and separate cash
flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South
Africa.
Basis for opinion
We have conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further
described in the
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
section of our report. We are
independent of the group and company in accordance with the Independent Regulatory Board for Auditors
Code of Professional Conduct for
Registered Auditors (IRBA Code)
and other independence requirements applicable to performing audits of financial statements in South Africa. We
have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to
performing audits in South Africa. The IRBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for
Professional Accountants (Parts A and B). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Group key audit matters
Revenue recognition – sale of goods
Refer to note 1.7 for the accounting policy and note 2 of the consolidated financial statements.
The key audit matter
How the matter was addressed in our audit
The group focuses on earnings growth as one of the
measures for management’s key performance, which may
create an incentive for revenue to be recognised before
the risks and rewards have been transferred, resulting in
a significant risk associated with revenue from an audit
perspective.
Due to the significant risk associated with revenue
recognition and the work effort from the audit team, the
recognition of revenue is considered to be a key audit
matter.
Our audit procedures included an assessment of the group’s revenue recognition
accounting policies including those relating to discounts and rebates and assessing
compliance of the policies in terms of IFRS (namely IAS 18
Revenue
).
Controls testing over the point of transfer of risks and rewards was supported by
substantive audit procedures including, among others:
■
■
Agreeing a sample of sales invoices to cash receipts from customers and/or
proof of delivery documents;
■
■
Testing a sample of sales transactions around year end to ensure inclusion in
the correct period;
■
■
Testing the provisions for credit notes, rebates and discounts by testing a
sample of credit notes, rebates and discounts processed immediately preceding
and post-year-end.
Findings
We found the recognition of revenue to be appropriate in terms of the requirements
of the financial reporting framework.
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
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