Basis of preparation
The provisional summarised consolidated financial statements are prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (“IFRS”) in effect for the Group at 28 February 2021 and further comply with the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, at a minimum contain the requirements of IAS 34 Interim Financial Reporting, as well as the requirements of the Companies Act 71 of 2008 of South Africa and the JSE Limited's Listings Requirements.
The preparation of these summarised financial statements and consolidated financial statements from which these summarised financial statements were derived from for FY21 was supervised by the Chief Financial Officer, Mr Ivan Dittrich, CA(SA).
Accounting policies
The accounting policies applied in the preparation of these interim financial statements are in terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous consolidated annual financial statements.
New standards effective for annual periods beginning on or after 1 January 2020
No new standards, amendments to published standards and interpretations which became effective for the year commencing on 1 January 2020 had an impact on the
Group's accounting policies.
New standards, amendments to existing standards and interpretations that are not yet effective and have not yet been early adopted
The Group did not early adopt any new, revised or amended accounting standards or interpretations. The accounting standards, amendments to issued accounting standards and interpretations, which are relevant to the Group but not yet effective at 28 February 2021, are being evaluated for the impact of these pronouncements, and are not expected to have a material impact.
Critical accounting judgements and key sources of estimation uncertainty
The results of the Group have many areas where key assumptions concerning the future and other key areas of estimation could have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial year.
The results contain sources of estimation and uncertainty in the following areas:
- estimates made in determining the recoverable amount of goodwill included in the statement of financial position;
- estimates made in determining the probability of future taxable income justifying the recognition of deferred tax assets;
- estimates made in determining the fair value of share-based payment expenses arising from various share incentive schemes in the Group;
- estimates made in determining the level of provision required for obsolete inventory;
- estimates made in determining the amount or timing relating to restructuring, legal claims, taxes, pension and dilapidation obligations;
- estimates made when measuring expected credit losses;
- judgements in determining the lease term by considering all facts and circumstances that create an economic incentive to exercise on extension option; and
- judgements and estimated in determining if revenue should be net or gross accounted.
Going concern
The directors have reviewed the future profit and cash flow projections in conjunction with the current economic climate as well as banking facilities in place to support all the operations, in order to express an opinion on the adequacy of working capital and the ability to continue as a going concern for the foreseeable future. These projections covered future financial performance, solvency and liquidity for a period of 12 months from the date of the release of these results. The directors have concluded that the Group will continue to be a going concern for the foreseeable future and therefore the results have been prepared on a going concern basis.
Independent auditor's report
The independent auditor, PricewaterhouseCoopers Inc., has issued its unmodified audit opinions on the consolidated financial statements and on these summarised consolidated financial statements for the year ended 28 February 2021 in accordance with International Standards on Auditing. These summarised consolidated financial statements have been derived from the audited consolidated annual financial statements and are consistent in all material respects, with the Group's consolidated financial statements. The consolidated financial statements and the auditor's unmodified reports on the consolidated financial statements and on these summarised consolidated financial statements are available for inspection at the Company's registered office.
The auditor's reports do not necessarily report on all of the information contained in this announcement/financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain a copy of the reports together with the accompanying financial information from the Company's registered office.
The full set of consolidated financial statements and unmodified audit opinion with their key audit matters from PricewaterhouseCoopers Inc. is available for inspection as its registered offices and at http://www.datatec.com/investors-results-presentations.php
Any reference to future financial performance included in this announcement, has not been audited or reported on by the Company's auditor.
