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FINANCIAL OVERVIEW
Independent auditor’s report
Company key audit matter
Assessment of investments in subsidiaries for impairment
The key audit matter
How the matter was addressed in our audit
The company’s most significant assets is its investment
in subsidiaries. The company reflects its investments in
subsidiaries at cost less accumulated impairment losses.
At year-end, management performed an impairment
assessment and concluded that no impairment of the
company’s investment in subsidiaries was necessary.
Due to the magnitude of the carrying amounts, the
assessment of the investment in subsidiaries for impairment
required significant auditor attention and was considered a
key audit matter.
Our audit procedures included, among others, the following:
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Obtaining the impairment assessment prepared by management and gaining an
understanding of the methodology applied to determine the recoverable amount
in respect of the investments;
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Comparing the value of the investment in subsidiaries to the net asset value of
the investees; and
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Considering any contradictory evidence that came to our attention during our
audit of both the consolidated and separate financial statements that may have
had an impact on the impairment assessment.
Findings
We found that management’s assessment, that no impairment of investment in
subsidiaries was necessary at year-end, was reasonable.
Other information
The directors are responsible for the other information. The other information comprises the directors’ report, the audit and risk committee’s report
and the declaration by company secretary as required by the Companies Act of South Africa, and all other information included in the annual
financial statements, which we obtained prior to the date of this report and the annual integrated report, which is expected to be made available to
us after that date. Other information does not include the consolidated and separate financial statements and our auditor’s report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express an audit opinion or
any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the
date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the directors for the consolidated and separate financial statements
The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with
International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors
determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated and separate financial statements, the directors are responsible for assessing the group and company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group and/or the company or to cease operations, or have no realistic alternative but to do so.
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
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