GROUP ACCOUNTING POLICIES The principal accounting policies applied are set out below: 1. Basis of preparation These financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 36. All monetary information and figures presented in these financial statements are stated in millions of Rand (R’m), unless otherwise indicated. Standards and interpretations not yet effective The Group has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the company’s accounting periods beginning on or after 01 January 2024 or later periods: • Classification of Liabilities as Current or Non-Current: Amendments to IAS 1 • General Sustainability-related Disclosures: New Standard IFRS S1 • Climate-related Disclosures: New Standard IFRS S2 2. Changes in accounting policies and disclosures 2.1 New and amended standards and interpretations In these financial statements, the Group has applied IFRS 17 for the first time. 2.1.1. IFRS 17 Insurance Contracts IFRS 17 ‘Insurance Contracts’ replaces IFRS 4 with implementation for annual periods beginning on or after 1 January 2023. The new standard has no impact on qualifying members’ PPS Profit-share accounts, nor the methodology for allocation of profits to these accounts. The Group has restated comparative information for 2022 by applying the transitional provisions in IFRS 17. The nature of changes in accounting policies, as a result of compliance with IFRS 17 is described below: 2.1.1.1 Changes to classification and measurement The adoption of IFRS 17 does not change the classification of the Group’s insurance contracts. IFRS 4 permitted the continuation of previously implemented accounting policies. However, IFRS 17 establishes specific principles for the recognition and measurement of insurance contracts issued and reinsurance contracts held by the Group. The key principles of IFRS 17 are that the Group: • identifies insurance contracts as those under which the Group accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder; • divides the insurance and reinsurance contracts into groups it will recognise and measure; 106 Group Accounting Policies
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