Annual integrated report 2018

Independent auditor’s report Company key audit matter Assessment of investments in subsidiaries for impairment. Refer to notes 2 and 5 of the separate financial statements. The key audit matter How the matter was addressed in our audit The company’s most significant assets are its investments in subsidiaries. The company reflects its investments in subsidiaries at cost less accumulated impairment losses. At year-end, management performed an impairment assessment and impaired the company’s investment in BTW Investments Proprietary Limited (BTW) by R542 million. Management concluded that no further 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 the following: • Obtained the impairment assessment prepared by management and gained an understanding of the methodology applied to determine the recoverable amount in respect of the investments; • Compared the value of the investment in subsidiaries to the net asset value (NAV) of the investees; • Evaluated management’s impairment assessment of the company’s investment in BTW, which included the comparison the company’s investment in BTW to the NAV at year-end; and • Considered 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 further 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 committees 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’s 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. 78 Bid Corporation Limited Annual integrated report 2018