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Publication Of 2020 Annual Financial Statements Of MTNH
MOBILE TELEPHONE NETWORKS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1993/001411/06)
Issuer Code: BIMTN
(MTNH) or (the Company)
PUBLICATION OF 2020 ANNUAL FINANCIAL STATEMENTS OF MTNH
Noteholders are advised that the company and group Annual Financial Statements
of MTNH, and its guarantor MTN Group Limited (MTN Group) for the year ended 31
December 2020 (the AFS) have been published on the website of MTN Group.
SizweNtsalubaGobodo Grant Thornton Inc. have expressed an unqualified audit
opinion on the MTNH company and group Annual Financial Statements.
MTNH group implemented a voluntary change in accounting policy relating to the
release of foreign currency translation reserves (FCTR). IAS 21 The Effects of
Changes in Foreign Exchange Rates (IAS 21) requires that on the disposal of a foreign
operation, the cumulative amount of the exchange differences relating to that foreign
operation, recognised in other comprehensive income (OCI) and accumulated in FCTR
in equity, shall be reclassified from equity to profit or loss as a reclassification
adjustment when the gain or loss on disposal is recognised. Two accepted methods
exist for recycling FCTR:
- Step-by-step method – FCTR is recycled based on the appreciation or devaluation
in the functional currency of the investment disposed of against the functional
currency of the intermediate parent and translated into the functional currency of
the ultimate parent.
- Direct method – FCTR is recycled based on the appreciation or devaluation in the
functional currency of the investment disposed of against the functional currency of
the ultimate reporting entity.
The group has historically applied the step-by-step method on disposals to date. As
the group’s functional and presentation currency is South African rand and the FCTR
is based on the appreciation or devaluation of the South African rand against the
equity of the underlying operations in the group, the direct method provides a more
reliable and relevant view of the gain or loss realised in the context of the group’s
South African rand (ZAR) functional currency. The group has accordingly changed its
accounting policy on the reclassification of FCTR on disposal of foreign operations
held by an intermediate parent where the functional currency of the foreign
operation and intermediate parent is different to that of the ultimate parent from the
step-by-step method to the direct method and has restated its comparative
information retrospectively.
The AFS are available on MTN Group’s website on the following link:
https://www.mtn.com/investors/more-in-investors/debt-and-funding-updates/
Fairland
30 April 2021
Debt Sponsor: The Standard Bank of South Africa Limited
Date: 30-04-2021 04:51:00
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