JSE advises new compliance for group interim results release
The JSE Securities Exchange SA has, upon the recommendations of the GAAP Monitoring Panel, advised that it requires the Tongaat Hulett Group's interim results henceforth to comply with AC127.
This will preclude the company from reporting the interim results of its sugar operations, as it has for many decades, because of the seasonal nature of the sugar industry on the basis of one half of the estimated results for the year. Accordingly, when next the company reports its interim results, which will be for the half year ended 30 June 2003, the results for that period will reflect the impact of applying changed accounting policies, with restated results for the half year ended 30 June 2002.
The company advises that it intends to adopt AC137 (Agricultural Accounting) early, which requires that its biological assets be fair valued at each accounting period and, as stated above, will cease accounting for its sugar operations on a seasonal basis. This change in the basis of accounting is unlikely to have a material effect on the results for the year to 31 December 2002. The annual financial statements for the year ended 31 December 2002 will fully set out the impact of this change.