Annual integrated report 2018

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 80 to 149, which comprise the consolidated and separate statements of financial position at June 30 2018, 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. 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 2018, 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 (ISAs). 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 4.1 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 included: • Agreed a sample of sales invoices to cash receipts from customers and/or proof of delivery documents to ensure that revenue is only recognised when risks and rewards have been transferred; • Tested a sample of sales transactions around year-end to ensure inclusion in the correct period; and • Tested 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 to ensure that revenue is recognised or reversed in the correct period. Findings We found the recognition of revenue to be appropriate in terms of the requirements of the financial reporting framework. 76 Bid Corporation Limited Annual integrated report 2018