Notes to the Consolidated And Separate Annual Financial Statements | Note 34

34. RESTATEMENTS OF JUNE 2023 AND JUNE 2022 RESULTS
 

During the current year, there were restatements due to the adoption of IFRS 17 and prior period errors that were identified.
34.1 Impact on consolidated statement of profit or loss and other comprehensive income on transition to IFRS 17
 

During the current year, AfroCentric adopted IFRS 17 on the two cell captives (Medgap cover and Sanlam gap cover) that are managed by Guardrisk Limited and Centriq Life Insurance Company Limited, respectively. The impact of the transition to IFRS 17 has been disclosed by restating each of the financial statement line items for the prior periods as reflected on Notes 34.1, 34.2 and 34.3 on the next page.

Consolidated statement of profit or loss and other comprehensive income

   Group 
2023 
As previously 
reported 
R'000 		 Restatements 
R'000 		 Restated 
2023 
R'000 
Fair value gains  16 245  (12 576) 3 669 
Insurance revenue  –  82 415  82 415 
Insurance finance income  –  4 092  4 092 
TOTAL INCOME  16 245  73 931  90 176 
Insurance service expense  –  (73 081) (73 081)
PROFIT FOR THE YEAR  294 684  850  295 534 
Profit for the year  294 684  850  295 534 
Owners of Parent  182 673  850  183 523 
TOTAL COMPREHENSIVE INCOME  303 368  850  304 218 
Total basic earnings per share  30.56  0.14  30.70 
Total diluted earnings per share  29.43  0.14  29.57 
Headline earnings per share  36.20  0.14  36.34 
34.2 Impact on statement of financial position on transition to IFRS 17
 

Consolidated statement of financial position

   Impact on retained earnings at the beginning
of July 2023 		 Impact on retained earnings at the beginning
of July 2022 
   Jun-23 
as previously 
reported 		 IFRS 17 
Restatements  		 Restated 
1 July 2023 		 Jun-22 
as previously 
reported 		 IFRS 17 
Restatements 		 Restated 
1 July 2022 
ASSETS                   
Non-current assets                   
Insurance Contracts  –  69 978  69 978  –  56 154  56 154 
Other financial Assets  109 521  (69 593) 39 928  75 736  (56 619) 19 117 
TOTAL NON-CURRENT ASSETS  109 521  385  109 906  75 736  (465) 75 721 
EQUITY                   
Retained Earnings  859 252  385  859 637  1 245 965  (465) 1 245 500 
TOTAL EQUITY  3 498 867  385  3 499 250  3 426 481  (465) 3 426 016 
34.3 Impact on statement of cash flows on transition to IFRS 17
 

The cash flow statement has been restated with the impact of the transition to IFRS 17 as well as a correction of the value of the Cash paid to suppliers and employees that was understated.

Consolidated statement of cash flows

   Group 2023 
As previously 
reported 
R'000 		 IFRS 17 
Restatements 
R'000 		 Error 
R'000 		 Restated 
2023 
R'000 
Consolidated statement of cash flows             
Cash flows from operating activities             
Cash receipts from customers  8 789 440  82 415  –  8 871 855 
Cash paid to suppliers and employees  (7 986 009) (86 507) (3 196) (8 075 712)
Cash generated from operations  800 235  (4 092) –  796 143 
34.4 Impact on consolidated statement of profit or loss and other comprehensive income on correction of prior period error.
 

During the 2023 financial period, Medscheme Holdings incorrectly recognised revenue from contracts with customers and other expenses. The effect of the error can be seen on revenue from contracts with customers and other expenses. This restatement did not have an impact on the Statement of Financial Position and on the Statement of Cash Flows.

Consolidated statement of profit or loss and other comprehensive income

   Group 
2023 
As previously 
reported 
R'000 		 Restatements 
R'000 		 Restated 
2023 
R'000 
Revenue from contracts with customers  8 868 032  (107 806) 8 760 226 
Other expenses  (1 225 988) 107 806  (1 118 182)
PROFIT BEFORE TAX  426 536  –  426 536 
Profit for the year  294 684  –  294 684 
Owners of Parent  182 673  –  182 673 
TOTAL COMPREHENSIVE INCOME  303 368  –  303 368