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JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
INTEGRATED ANNUAL REPORT 2011
ation received or receivable and represents the amounts
receivable for goods and services provided in the normal
course of business, net of trade discounts and volume re-
bates, and value added tax.
Interest is recognised, in profit or loss, using the effective
interest rate method.
Dividends are recognised, in profit or loss, when the com-
pany’s right to receive payment has been established.
Service fees included in the price of the product are
recognised as revenue over the period during which the
service is performed.
1.16 Translation of foreign currencies
Foreign currency transactions
A foreign currency transaction is recorded, on initial rec-
ognition in Rands, by applying to the foreign currency
amount the spot exchange rate between the function-
al currency and the foreign currency at the date of the
transaction.
At the end of the reporting period:
•
foreign currency monetary items are translated us-
ing the closing rate;
•
non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rate at the date of the transac-
tion; and
•
non-monetary items that are measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value was
determined.
Exchange differences arising on the settlement of mon-
etary items or on translating monetary items at rates dif-
ferent from those at which they were translated on initial
recognition during the period or in previous annual fi-
nancial statements are recognised in profit or loss in the
period in which they arise.
When a gain or loss on a non-monetary item is recognised
in profit or loss, any exchange component of that gain or
loss is recognised in profit or loss.
Cash flows arising from transactions in a foreign currency
are recorded in Rands by applying to the foreign currency
amount the exchange rate between the Rand and the for-
eign currency at the date of the cash flow.
Accounting Policies -
Continued
Annual Financial Statements for the 15 months ended 30 September 2011