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The accounting for the acquisition of PharmaLatina Holdings Ltd (“PharmaLatina”) was made on a provisional basis in terms of IFRS 3 for the year ended 30 June 2008.
In terms of IAS 8, Accounting policies, Changes in Accounting Estimates and Errors, the adjustments to finalise the PharmaLatina acquisition have been corrected retrospectively.
The comparative figures have been restated to present the prior year figures as if the acquisition accounting was finalised in the prior year. No statement of financial position for the year ended 30 June 2007 has been presented as required by IAS 1 revised for any restatements of prior period amounts, as the effect of the PharmaLatina business combination affected only the year ended 30 June 2008. |
STATEMENT OF FINANCIAL POSITION |
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2008
R’million |
Adjust-
ments
R’million |
Restated
June
2008
R’million |
| ASSETS |
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| Non-current assets |
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| Property, plant and equipment |
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1 744,6 |
(58,9) |
1 685,7 |
| Goodwill |
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589,9 |
13,1 |
603,0 |
| Intangible assets |
|
3 723,1 |
(17,4) |
3 705,7 |
| Current assets |
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| Trade and other receivables |
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1 789,4 |
86,4 |
1 875,8 |
| Total assets |
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10 848,6 |
23,2 |
10 871,8 |
| LIABILITIES |
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| Non-current liabilities |
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| Deferred tax liabilities |
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155,1 |
(6,6) |
148,5 |
| Current liabilities |
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| Trade and other payables |
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1 004,0 |
29,8 |
1 033,8 |
| Total liabilities |
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7 529,8 |
23,2 |
7 553,0 |
| Total equity and liabilities |
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10 848,6 |
23,2 |
10 871,8 |
On 1 March 2008, the Group acquired 50% of the shares of PharmaLatina, a Cypriot holding company with subsidiaries in Brazil, Mexico and Venezuela. The initial accounting for the acquisition had not been finalised and therefore the acquisition calculations were based on the best estimates available to the Group at the time. The amounts below reflect the changes to the fair values and carrying values of the PharmaLatina assets and liabilities at the acquisition date: |
| COST OF THE ACQUISITION |
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2008
R’million |
Restated
2008
R’million |
| Cash paid |
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1 068,3 |
1 068,3 |
| Fair value of assets acquired |
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(591,4) |
(578,3) |
| Deferred receivable recognised on acquisition |
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(431,6) |
(431,6) |
| Cash flow hedging – deferral in equity |
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87,6 |
87,6 |
| Goodwill |
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132,9 |
146,0 |
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Fair value recognised |
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2008
R’million |
Adjustments
2008
R’million |
Restated
2008
R’million |
Carrying
amounts
before
acquisition
2008*
R’million |
| Property, plant and equipment |
276,5 |
(58,9) |
217,6 |
274,2 |
| Intangible assets |
75,6 |
(17,4) |
58,2 |
24,0 |
| Inventories |
89,3 |
— |
89,3 |
88,9 |
| Trade and other receivables |
124,7 |
86,4 |
211,1 |
124,7 |
| Cash and cash equivalents |
166,1 |
— |
166,1 |
166,1 |
| Borrowings |
(1,1) |
— |
(1,1) |
(1,1) |
| Deferred tax liabilities |
(24,4) |
6,6 |
(17,8) |
(6,4) |
| Trade and other payables |
(114,5) |
(29,8) |
(144,3) |
(114,5) |
| Current tax liabilities |
(0,8) |
— |
(0,8) |
(0,8) |
| Fair value of assets acquired |
591,4 |
(13,1) |
578,3 |
555,1 |
| Cash flow hedging – deferral in equity |
(87,6) |
— |
(87,6) |
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| Deferred receivable recognised on acquisition |
431,6 |
— |
431,6 |
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| Goodwill acquired |
132,9 |
13,1 |
146,0 |
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| Purchase consideration |
1 068,3 |
— |
1 068,3 |
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| *None of the carrying amounts before acquisition were restated in the current year. |
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