Annual Report and Accounts 2013
Petra Diamonds Limited 95
Overview
Performance Review
Strategic Review
Sustainability
Corporate Governance
Group Accounts
1. Accounting policies
Petra Diamonds Limited (“Petra” or “the Company”), a limited liability company listed on the Main Market of the London Stock
Exchange, is registered in Bermuda and domiciled in Jersey. The Company’s registered address is 2 Church Street, Hamilton, Bermuda.
The Financial Statements incorporate the principal accounting policies set out below, which are, except as detailed in note 1.2,
consistent with those adopted in the previous year’s Financial Statements.
1.1 Basis of preparation
The Financial Statements of the Company and its subsidiaries and associates (“the Group”) are prepared in accordance with
International Financial Reporting Standards (IFRS and IFRIC Interpretations) issued by the International Accounting Standards
Board (“IASB”), as adopted by the European Union (“IFRS”).
Going concern
The Group’s business activities, together with factors likely to affect its future development, performance and position, are set
out in the Strategic Review and the Performance Review. The financial position of the Group, its cashflows and borrowing facilities
are set out in the CEO’s Review and the Financial Review. The notes to the Financial Statements set out the Group’s objectives,
policies and processes for managing its capital, exposures to credit risk and liquidity risk.
The Directors have reviewed the Group’s current cash resources, funding requirements and ongoing trading of the operations.
As a result of the review, the going concern basis has been adopted in preparing the Financial Statements and the Directors have
no reason to believe that the Group will not be a going concern in the foreseeable future based on forecasts and available
cash resources.
Currency reporting
The functional currency of the Company is Pounds sterling (GBP) and the functional currency of the Group’s business transactions
in Botswana and Tanzania is US Dollars. The functional currency of the South African operations is South African Rand (ZAR or R).
The Group Financial Statements are presented in US Dollars (US$). Further details are provided on the foreign currency accounting
policy in note 1.13. ZAR balances are translated to US Dollars at R9.88 as at 30 June 2013 (30 June 2012: R8.16) and at an average
rate of R8.83 for transactions during the year ended 30 June 2013 (30 June 2012: R7.76).
1.2 New standards and interpretations applied
The IASB has issued the following new standards, amendments to published standards and interpretations to existing standards
with effective dates on or prior to 1 July 2012 which have been adopted by the Group for the first time this year and which have
not had a material effect:
Effective period
commencing
on or after
Impact on Group
IAS 12
Amendment – Deferred Tax: Recovery of Underlying Assets
1 January 2012 No material impact
IAS 1
Amendment – Presentation of Items of Other Comprehensive Income
1 July 2012 No material impact
New standards and interpretations not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group’s
accounting periods beginning after 1 July 2012 or later periods and which the Group has decided not to adopt early or which
are yet to be EU endorsed. These are:
Effective period
commencing
on or after
IFRS 10
Consolidated Financial Statements
1 January 2013
IFRS 11
Joint Arrangements
1 January 2013
IFRS 12
Disclosure of Interests in Other Entities
1 January 2013
IFRS 13
Fair Value Measurement
1 January 2013
IFRIC 20
Stripping Costs in the Production Phase of a Surface Mine
1 January 2013
IFRS 7
Disclosures – Offsetting Financial Assets and Financial Liabilities
1 January 2013
IAS 27
Amendment – Separate Financial Statements
1 January 2013
IAS 28
Amendment – Investments in Associates and Joint Ventures
1 January 2013
IAS 19
Amendment – Employee Benefits
1 January 2013
Annual improvements to IFRSs (2009–2011 Cycle)
1 January 2013
IAS 32*
Offsetting Financial Assets and Financial Liabilities
1 January 2014
IFRS 9*
Financial Instruments
1 January 2015
* Not yet adopted by the European Union.
Notes to the Annual Financial Statements
For the year ended 30 June 2013
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