Notes to condensed consolidated income statements, statements of financial position, statements of cashflows and other financial and operating data
1. Reclassification
Net foreign exchange gains/(losses)
During the current reporting period, the Group changed its accounting policy in respect of the classification of foreign exchange gains and losses in the income statement. Foreign exchange gains and losses, which were previously classified as part of “Other income/(expenses) – net”, are now classified as part of “Finance income/(costs) - net”. The change is considered a more relevant presentation of such items in the income statement since the majority of foreign exchange gains and losses in 2014 relate to translation differences on foreign currency cash and cash equivalents arising from the IPO proceeds.
The reclassification has been adopted retrospectively, and the comparative amounts for the 3 months ended December 31, 2012 have been restated accordingly. The impact of the reclassification results in an increase of R1.1 million ($0.1 million) in "Operating profit" with a corresponding additional cost in "Finance income/(costs) - net" of R1.1 million ($0.1 million) for the 3 months ended December 31, 2012. Profit before taxation and profit for the period remain unchanged for the period.
2. Acquisition of proprietary software development business
During the current reporting period, the Group, through MiX Telematics International (Pty) Ltd, acquired a proprietary software development business. The business acquired has developed customizable software which comprises of a smartphone application and a Web-based user interface, and uses mobile and geographic information systems (GIS) technologies for the effective management of in-field data collection, distribution and tracking which may be applied to areas such as sales teams, research teams, meter readers and vehicle tracking and driver monitoring.
The acquisition was considered to be a business combination as defined by International Financial Reporting Standards, and as a result has been accounted for under the requirements of IFRS 3. The group acquired the power to control the operating and financial activities of the acquired business on December 19, 2013, and the assets acquired and liabilities assumed have been recorded at their provisional fair values.
As per IFRS 3, the group has 12 months from the acquisition date to finalize the at acquisition date fair values of the identified acquired assets and liabilities. From the acquisition date, no revenue has been recorded by the business acquired, and the impact on profit before tax is considered to be insignificant by management.
The total consideration payable in respect of this acquisition was R7.6 million ($0.7 million). No portion of the consideration had been paid at December 31, 2013.
Contact:
Investor Contact:
ICR for MiX Telematics
Sheila
Ennis, 855-564-9835
Email Contact
