35. IMPLEMENTATION OF NEW STANDARDS
During the year, the group adjusted its presentation of finance costs and cost of sales relating to the financial services business.
The change results in finance costs presented above the gross profit line on the face of the statements of comprehensive income
as cost of sales, due to the finance income of the financial services business presented as revenue on the face of the statements
of comprehensive income. Prior to this change in presentation, the group recognised the finance costs relating to the financial
services business as finance costs in the respective line on the face of the statements of comprehensive income.
The group believes this presentation is preferable as it aligns the nature of transactions, and will aid financial analysis. This constitutes
a change in accouning policy, and results in the retrospective adjustment of disclosed amounts.
The impact of this voluntary change in presentation on the consolidated financial statements is limited to the statement of comprehensive
income and the statements of cash flows. The impact on each line item of the consolidated financial statements is
as follows:
GROUP
Statement of comprehensive income
2020
R'm
2019
R'm
Increase in cost of sales (155) (133)
Decrease in gross profit (155) (133)
Decrease in operating profit (155) (133)
Decrease in finance costs 155 133
Net adjustment in profit before tax - -
Statement of cash flows
Decrease in cash from operating activities (outflow) (155) (133)
Decrease in finance costs paid (inflow) 155 133
Net adjustment in net cash flows from operating activities - -
The reclassification of finance costs did not have any other material impact on the financial statements of the group and therefore no third
statement of financial position is disclosed.
36. STANDARDS ISSUED BUT NOT YET EFFECTIVE
At the reporting date, there are no standards issued but not yet effective which are evaluated to have a material impact on the
group in future periods.
37. EVENTS AFTER THE REPORTING PERIOD
Senwes was involved in negotiations regarding the acquisition of a controlling interest in Suidwes Landbou. Approval has been
obtained from the Competition Commission and the shareholders of Suidwes Landbou. Senwes is awaiting approval from the
Competition Tribunal.
Except for the above, management is not aware of any other event that has occurred from the date of statement of financial
position up to the date of this report.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 82