Accounting policies

DEFINITIONS

Refer to Definitions and www.barloworld.com for a list of financial terms used in the annual financial statements of Barloworld Limited (the company) and consolidated financial statements.

BASIS OF PREPARATION
1. Accounting framework
 

The financial statements ar e prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Pronouncements as issued by the Financial Reporting Standards Council and the Companies Act of South Africa. The historical cost convention is used except for certain financial instruments that are stated at fair value.

The basis of preparation is consistent with the prior year, except for new and revised standards and interpretations adopted per note 33 to the financial statements. This year, we have reduced our accounting policy disclosures for the first time. Accounting policies, which are useful to users, especially where particular accounting policies are based on judgement regarding choices within IFRS, have been disclosed.

Accounting policies for which no choice is permitted in terms of IFRS have been included only if management concluded that the disclosure would assist users in understanding the financial statements as a whole, taking into account the materiality of the item being discussed. Accounting policies which are not applicable from time to time have been removed, but will be included if the type of transaction occurs in future.

The group has made the following accounting policy choices in terms of IFRS:

  • Interest in associates and joint ventures are accounted using the equity method (policy note 15)
  • The cost model is applied in accounting for property, plant and equipment and leased assets (policy note 12)
  • All other accounting policies are in line with IFRS.
2. Underlying concepts
 

The financial statements are prepared on the going-concern basis.

Assets and liabilities and income and expenses are not offset unless specifically permitted by an accounting standard.

Financial assets and financial liabilities are offset and the net amount reported only when a legally enforceable right to set off the amounts exists and the intention is either to settle on a net basis or to realise the asset and settle the liability simultaneously.

EBITDA refers to earnings before interest, taxes, depreciation and amortisation.

Non-operating and capital items refer to expenses/income that are unrelated to Barloworld’s core operations and fall outside the normal course of business. Items of income/expense included in non-operating and capital items are consistent with items that are ‘out of’ (excluded from) headline earnings per share (HEPS) in accordance with the JSE Listings Requirements and guidance published by the South African Institute of Chartered Accountants relating to HEPS.

All financial information has been rounded to the nearest million unless stated otherwise.

3. Judgements and estimates made by management
 

Preparing financial statements in conformity with IFRS requires estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from these estimates.

Accounting policies which have been identified as involving particularly complex or subjective judgements or assessments are as follows:

Revenue recognition

The per centage of completion method is applied to recognise revenue on long-term maintenance and repair contracts (MARC) in the Equipment and Automotive businesses. Management exercises judgement in calculating the deferred revenue reserve which is based on the anticipated cost of repairs over the life cycle of the equipment or motor vehicles, applied to the total expected future revenue arising from MARC. Deferred revenue is released as the services are provided in line with the transfer of risks and rewards principle. For further detail refer to note 2 included in the annual financial statements.

Within the Equipment business certain sales are executed through sale and lease arrangements with financial institutions. In such transactions, revenue is recognised on the basis that the company takes utilisation risk in respect of the equipment rental to end customers but does not retain any credit risk or residual value risk and earns only some of the reward for selling the equipment on behalf of the financial institution at the expiry of the lease. Where credit risk and/or residual value risk is borne by the company or where there is existence of bargain purchase options in favour of Barloworld, such arrangements are classified as finance leases.

Impairment of assets

Goodwill and intangible assets

Future cash flows expected to be generated by the assets or cash-generating units are projected, taking into account market conditions and the expected useful lives of the assets. The present value of these cash flows, determined using an appropriate discount rate, is compared to the current net asset value and, if lower, the assets are impaired to the present value.

Cash flows which are utilised in these assessments are extracted from formal five-year business plans which are updated annually. The company utilises a discounted cash flow valuation model to determine asset and cash-generating unit values supplemented, where appropriate, by other valuation techniques.

For further details of management’ s impairment assessments over goodwill and intangible assets refer to notes 10 and 11 included in the annual financial statements.

Receivables

Receivables are reviewed for impairment on an individual basis. Factors considered in the impairment assessment include the ageing of past-due receivables, the credit quality of counterparties, historical credit losses, existing market conditions, collateral and/or insurance held over the receivables, as well as any existing disputes regarding price, delivery, quality and authorisation of any work done over the underlying assets sold/services performed. For further detail refer to note 18 included in the annual financial statements.

Deferred taxation assets

Deferred taxation assets are recognised to the extent it is probable that taxable income will be available in future against which they can be utilised.

Five-year business plans ar e prepared annually and approved by the boards of the company and its major operating subsidiaries. These plans include estimates and assumptions regarding economic growth, interest rates, inflation and competitive forces.

The plans contain profit forecasts and cash flows and these are utilised in the assessment of the recoverability of deferred taxation assets.

Management also exercises judgement in assessing the likelihood that business plans will be achieved and that the deferred taxation assets are recoverable.

In certain circumstances further corroborative evidence is used, such as tax planning opportunities within the control of management, to support the recovery of the taxation asset.

Recognition and derecognition of assets

Within the Equipment division certain sale and leaseback finance arrangements result in the derecognition of assets in instances where risk and reward of ownership are assessed as having passed to the purchaser.

Asset lives and residual values

Property, plant and equipment with the exception of Equipment and Automotive rental/fleet assets are depreciated over its useful life taking into account residual values, where appropriate.

The actual lives and usage of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives and usage, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Short-term car rental fleets are depreciated to guaranteed residual value or by 20% per annum where no residual values have been guaranteed.

Post-employment benefit obligations

Actuarial valuations are based on assumptions which include employee turnover, mortality rates, the discount rate, the expected long-term rate of return of retirement plan assets, healthcare inflation cost and rates of increase in compensation costs.

Judgement is exercised by management, assisted by advisers, in adjusting mortality rates to take account of actual mortality rates within the schemes.

Provisions

Warranty claims provision

Warranties are provided on certain equipment, spare parts and services supplied to customers. Management exercises judgement in establishing provisions required on the basis of claims notified and past experience.

Provisions for warranty costs are recognised at the date of sale of the relevant products, at the estimated expenditure required to settle the group’s obligation.

Within the Equipment and Automotive divisions warranties are provided on certain equipment based on warranties supplied by the OEMs (original equipment manufacturers) for spare parts and service supplied to customers. For further detail refer to note 23 included in the annual financial statements.

Maintenance provision

Deferred revenue from maintenance contracts on equipment, forklift trucks and motor vehicles is initially recognised as a provision and is released as income over the life cycle of the contracts.

Within the Equipment and Automotive divisions maintenance provisions are recognised for expected maintenance and repair costs over the life cycle of the relevant assets based on historical costs incurred and expected utilisation. For further detail refer to note 23 included in the annual financial statements.

Provision for net realisable value of inventory

Equipment inventory consists of machines, parts and work-in-progress.

Machine inventory is reviewed by country and by machine model taking into account the ageing, market demand and condition of the machine to determine the net realisable value.

Parts inventory is categorised as follows:

  • strategic parts with longer lead times or parts required to support new machine models;
  • non-strategic parts that are generally faster moving parts;
  • perishable parts with a limited shelf life;
  • remanufactured components;
  • returnable and non-returnable;
  • rebuilt components.

Obsolete, slow-moving and damaged inventories are identified for each parts category. Returnable slow moving parts are reduced to the net realisable value based on inventory turns and by applying a sliding provisioning scale.

The methodology for determining the provision for the net realisable value of rebuilt components was changed in the current financial year. This change represented a change in accounting estimate and has been disclosed in note 17. Rebuilt component parts are stratified by country taking into account market demand, condition of the component and ageing and the net realisable value is determined by applying a sliding provisioning scale.

Automotive inventory consists of new, used and demo vehicles as well as parts stock.

The net realisable value of all used, demo and parts stock is assessed at every reporting date taking into account the ageing, condition and the current market demand for such items.

Classification of financial liabilities

The Automotive and Equipment businesses utilise floor plan and trade financing facilities to efficiently manage working capital flows. Judgement is exercised regarding whether these arrangements constitute trade payables or debt. Factors considered include the currency in which the financing arrangements are settled, the repayment terms of the facilities relative to standard supplier payment terms and the existence of breakage costs on these facilities. To ensure comparability and consistency, current industry practices are also considered as part of this determination

Interests in subsidiaries

The trust established to hold the shares awarded in the black economic empowerment transaction to the education entity is considered to be controlled by the company. Accordingly the assets and liabilities and the results of this trust have been consolidated since the date of the transaction.

Functional currencies

The US Dollar has been selected as the functional currency for the group’s operations across the majority of the African territories and in Russia. A combination of factors is considered in coming to this conclusion. These included the assessment of the economic environment where the operations are located, the currency that most influences the cost of goods and the pricing decisions and the relative stability of the local currencies in these territories.

4. Foreign currencies
 

The financial statements of entities within the gr oup whose functional currencies are different to the group’s presentation currency, which is South African Rand, include the following significant currencies:

  • US Dollar
  • British Pound
  • Euro
  • Russian Ruble
  • Angolan Kwanza
CONSOLIDATED FINANCIAL STATEMENTS
5. Operating segments
 

The executive committee has determined the operating segments based on the information it uses to allocate resources and assess segmental performance.

Segments are analysed by operating activities and geographical regions.

No operating segments have been aggregated in arriving at the reportable segments of the group as presented in note 1.

Management evaluates the segment performance based on the operating results plus any other items that are directly attributable to segments including fair value adjustments on financial instruments. Interest costs are excluded due to the centralised nature of the group’s treasury operations.

The activities of the group’s operating segments are described below:

Southern Africa (SA)

The SA segment includes the following operations:

  • Equipment and Handling
    This segment delivers construction and mining equipment to the earthmoving industry
  • Automotive and Logistics
    The Logistics division of this segment includes supply chain solutions to a wide variety of industries. The Automotive division of this segment comprises the following world-class business units; Avis and Budget Rent a Car, Avis Fleet and Motor Trading.
  • Corporate
    This Corporate Office primarily comprises the operations of the group headquarters and treasury in Johannesburg.

Russia (RUS)

The RUS segment includes the following operation:

  • Equipment
    This RUS segment delivers construction and mining equipment to the earthmoving industries across Russia.

United Kingdom (UK)

The UK segment includes the following operation:

  • Corporate
    This Corporate Office primarily comprises the operations of treasury in Maidenhead and the captive insurance company.
INCOME STATEMENT
6. Revenue
 

Included in revenue are the following revenue streams per division together with a description of the primary products sold and services rendered:

Equipment

  • sale of goods: New and used Caterpillar earthmoving equipment, engines and other complementary products;
  • rendering of services: Workshop and in-field support services; and
  • rentals received: Rental of Caterpillar earthmoving equipment, engines and other complementary products.

Automotive

  • sale of goods: New, used and demo motor retailing through traditional channels and digital platforms;
  • rendering of services: after-sales services including vehicle services, fitment and repairs;
  • rentals received: Fleet management solutions and short-term vehicle rentals; and
  • commission revenue: Commissions earned on the sale and auctioning of goods.

Logistics

  • Sale of goods: Sale of recyclables and fast moving consumer goods;
  • Rendering of services: Logistics services and supply chain management solutions; and
  • Commission revenue: Commissions earned on the sale and clearing of goods.

Handling

  • sale of goods: Lift trucks, warehouse handling equipment and associated agricultural equipment; and
  • rendering of services: After-sales services including equipment services, fitment and repairs.

For further detail refer to note 2 included in the annual financial statements.

7. Employee benefit costs
 

The cost of providing employee benefits is accounted for in the period in which the benefits are earned by employees

The cost of short-term employee benefits is recognised in the period in which the service is rendered and is not discounted.

The expected cost of profit-sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance and a reliable estimate of the obligation can be made.

8. Finance costs
 

Interest on financial liabilities measured at amortised costs is calculated using the effective interest rate method.

Payments relating to capitalised finance lease liabilities are accounted for in terms of IAS 17 based on calculated Internal Rate of Return (IRR). For further detail refer to note 5 included in the annual financial statements.

9. Income from investments
 

Interest income is accrued on a time basis by reference to the principal outstanding and at the interest rate applicable.

10. Taxation
 

The charge for current taxation is based on the results for the year as adjusted for income that is exempt and expenses that are not deductible using tax rates that are applicable to the taxable income.

Deferred taxation is recognised in profit or loss except when it relates to items credited or charged to other comprehensive income, in which case it is also recognised in other comprehensive income.

Financial statement items
STATEMENT OF FINANCIAL POSITION
11. Interest in subsidiaries
 

The disposal of Iberia during the period is included in the consolidated income statement as profit from discontinued operations from the date of losing control. For further detail refer to note 20 included in the annual financial statements.

Non-controlling interest is measured at the proportion of the fair values of the identifiable assets and liabilities acquired.

12. Property, plant and equipment (PPE)
 

Items of PPE are stated at cost less accumulated depreciation and impairment losses.

The methods of depreciation, useful lives and residual values are reviewed annually.

The following methods and rates were used during the year to depreciate PPE to estimated residual values:

Buildings Straight line 20 to 50 years
Plant Straight line 5 to 35 years
Vehicles Straight line 5 to 10 years
Equipment Straight line 5 to 10 years
Furniture Straight line 3 to 15 years
Equipment rental assets Usage 2 to 5 years

Assets held under finance leases are depreciated over their expected useful lives or the term of the relevant lease, where shorter.

Vehicle rental fleets are accounted for as part of PPE but due to the short-term nature of the assets, the net book value is reflected under current assets in the statement of financial position.

13. Goodwill
 

Goodwill represents the future economic benefits arising from assets that are not capable of being individually identified and separately recognised in a business combination and is determined as the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary, associate or joint venture recognised at the date of acquisition.

Goodwill is stated at cost less impairment losses and is not amortised.

If, on a business combination, the fair value of the group’s interest in the identifiable assets, liabilities and contingent liabilities exceeds the cost of acquisition, this excess is recognised in profit or loss immediately. On disposal of a subsidiary, associate, jointly controlled entity or business unit to which goodwill was allocated on acquisition, the amount attributable to such goodwill is included in the determination of the profit or loss on disposal.

14. Intangible assets
 

Intangible assets are initially recognised at cost if acquired separately or at fair value if acquired as part of a business combination.

The following methods and rates were used during the year to amortise the intangible assets:

Capitalised software Straight line 2 to 7 years
Patents Straight line 10 years
Trademarks Straight line 10 to 20 years
Customer relationships Straight line 5 to 6 years

Supplier relationships are measured initially at fair value as part of a business combination. Supplier relationships are separately identifiable intangible assets from distribution agreements with suppliers specifying sales objectives, territory presence and service levels to be provided. Supplier relationships have been assessed as having indefinite useful lives and are tested for impairment annually.

Customer relationships are measured initially at fair value as part of a business combination.

Development costs are capitalised only when and if it results in an asset that can be identified, it is probable that the asset will generate future economic benefits and the development cost can be reliably measured. Otherwise development costs are recognised in profit or loss.

15. Interests in associates and joint ventures
 

Associates and joint ventures are measured using the equity method of accounting, applying the group’s accounting policies, from the acquisition date to the disposal date. The most recent audited annual financial statements of associates and joint ventures are used, which are all within three months of the year end of the group. Adjustments are made to the associate or joint venture’s financial results for material transactions and events in the intervening period.

16. Deferred taxation assets and liabilities
 

Deferred taxation is recognised using the financial position liability method for all temporary differences, unless specifically exempt, at the tax rates that have been enacted or substantially enacted at the financial position date.

A deferred taxation asset represents the amount of income taxes recoverable in future periods in respect of deductible temporary differences, the carry forward of unused tax losses and the carry forward of unused tax credits. Deferred taxation assets are only recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

A deferred taxation liability represents the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred taxation liabilities are recognised for taxable temporary differences, unless specifically exempt.

Deferred taxation assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects immediately neither taxable income nor accounting profit.

Deferred taxation arising on investments in subsidiaries, associates and joint ventures is recognised except where the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred taxation assets and liabilities are offset when there is a legally enforceable right to offset current taxation assets against current taxation liabilities and it is the intention to settle these on a net basis.

The group has companies where deferred taxes are recognised for temporary differences that arise when an entity’s taxable profit or loss (and thus the tax basis of an entity’s non-monetary assets and liabilities) are measured in a currency different from an entity’s functional currency. Changes in the exchange rate result in a deferred tax asset or liability which is charged to profit and loss.

17. Non-current assets held for sale and discontinued operations
 

Non-current assets of the Equipment Iberia operations were classified as held for sale in the prior year and the sale of this operation was concluded during the current financial year. Due to its significance, this segment was classified as a discontinued operation. The remaining assets classified as held for sale during the current year relate to the Middle East, KLL and SmartMatta operations within the Logistics division and the Barlow Park property owned by Barloworld Limited. For further detail refer to note 20 included in the annual financial statements.

18. Inventories
 

Inventories are diverse and materially consist of the following:

  • finished goods which include vehicles and machines;
  • work in progress relating to above mentioned finished goods; and
  • and merchandise such as parts etc.

Specific identification basis is used to arrive at the cost of items that are not interchangeable. Otherwise the first-in-first-out method or weighted average method for certain classes of inventory is used to arrive at the cost of items that are interchangeable.

Rental assets that become available for sale after being removed from rental fleets are transferred to inventories (policy note 12) at their carrying amount. Sale proceeds from such rental assets are recognised as revenue in accordance with policy note 6.

19. Financial assets and financial liabilities (Financial instruments)
 

An instrument is classified as at fair value through profit or loss if it is held for trading, is a derivative or is designated as such upon initial recognition.

Financial assets

A financial asset is classified as held for trading if it has been acquired principally for the purpose of selling in the near future or it has been part of an identified portfolio of financial instruments that the group manages together and has a recent actual pattern of short-term profit-making.

If the group has the positive intent and ability to hold debt securities to maturity, then they are classified as held to maturity. Investments that meet the criteria for classification as held to maturity financial assets are carried at amortised cost.

Financial instruments classified as available for sale financial assets are carried at fair value with any resultant gain or loss, other than impairment losses and foreign exchange gains and losses on monetary items, being recognised directly in equity. When these investments are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised in profit or loss. Where these investments are interest bearing, interest is calculated using the effective interest rate method is recognised in profit or loss.

Where the instrument is not classified as one of the above, it is carried at amortised cost.

Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Trade and other receivables are classified as loans and receivables and are measured at amortised cost less provision for doubtful debts, which is determined as set out under impairment of assets set out in policy note 3. Items with extended terms are initially recorded at the present value of future cash flows and interest received is accounted for over the term until payment is received. Write-downs of these assets are expensed in profit or loss.

Cash and cash equivalents are classified as loans and receivables and are measured at fair value.

Financial liabilities

Non-derivative financial liabilities that ar e not designated on initial recognition as financial liabilities at fair value through profit or loss (including interest-bearing loans and bank overdrafts) are measured at amortised cost using the effective interest rate method. Items with extended terms are initially recorded at the present value of future cash flows. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the accounting policy for borrowing costs (policy note 8).

20. Post-employment benefit obligations
 

It is the policy of the group to encourage, facilitate and contribute to the provision of retirement benefits for all permanent employees. To this end the group’s permanent employees are usually required to be members of either a pension or provident fund, depending on their preference and local legal requirements. The group also guarantees a funded defined benefit scheme for qualifying employees in the United Kingdom.

Payments to defined contribution plans are recognised as an expense as they fall due. Payments made to industry-managed retirement benefit schemes are dealt with as defined contribution plans where the group’s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit plan.

The cost of providing defined benefits is determined using the projected unit credit method. Valuations are conducted every three years and interim adjustments to those valuations are made annually.

Actuarial gains and losses are recognised immediately in the statement of other comprehensive income.

Gains or losses on the curtailment or settlement of a defined benefit plan are recognised in profit or loss when the group is demonstrably committed to the curtailment or settlement.

Past service costs are recognised in profit and loss immediately to the extent that the benefits are already vested. Otherwise they are amortised on a straight-line basis over the average period until the amended benefits become vested.

The amount recognised in the statement of financial position represents the present value of the defined benefit obligation as adjusted for the unrecognised past service costs and reduced by the fair value of plan assets. Any asset is limited to the unrecognised actuarial losses, plus the present value of available refunds and reductions in future contributions to the plan.

TRANSACTIONS AND EVENTS
21. Hedge accounting
 

Foreign currency and interest rate hedging instruments are used to manage the group’s currency and interest rate exposures. Details of the group’s risk management policies and practices are outlined in note 31.

All hedging relationships are designated as cash flow hedges. If these cash flow hedges meet the conditions for hedge accounting the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income and the ineffective portion is recognised in profit or loss. A hedge of the foreign currency risk of a firm commitment is designated and accounted for as a cash flow hedge.

22. Leasing
 

Classification

Leases are classified as finance leases or operating leases at the inception of the lease. Leases where the group has substantially all the risks and rewards of ownership are classified as finance leases.

In the capacity of a lessor

Long-term vehicle fleet is leased to customers for periods ranging from 24 to 60 months as finance leases. For further detail refer to notes 14 and 18 included in the annual financial statements.

In the capacity of a lessee

The majority of finance leases are entered into as lessee for land and buildings, motor vehicles and rental fleets. For further detail refer to notes 22 and 28 included in the annual financial statements.

23. Share-based payments
 

Equity-settled share options

Executive directors and senior executives have been granted equity-settled share options in terms of the Barloworld Share Option Scheme. After the date on which the options are exercisable and before the expiry date the options can be exercised to purchase shares for cash in which event the shares issued are accounted for in share capital and share premium at the amount of the exercise price.

Forfeitable Share Plan

Executive directors and senior executives have been granted equity-settled shares in terms of the Barloworld Forfeitable Share Plan (FSP). Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant and recognised in profit or loss on a straight-line basis over the vesting period, based on the estimated number of shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions. Fair value is measured using a binomial pricing model.

Equity-settled share appreciation rights

Equity-settled share appreciation rights have been granted to employees in terms of the Barloworld Share Appreciation Rights (SARs) Scheme. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant and recognised in profit or loss on a straight-line basis over the vesting period, based on the estimated number of shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions. Fair value is measured using a binomial pricing model.

Cash-settled SARs and FSPs

Cash-settled share appreciation rights and FSPs granted to employees for services rendered or to be rendered are raised as a liability and recognised in profit or loss immediately or, if vesting requirements are applicable, over the vesting period. The liability is measured annually until settled and any changes in value are recognised in profit or loss.

Fair value is measured using a binomial pricing model.

For further detail refer to notes 22 and 28 included in the annual financial statements.

24. Insurance contracts
 

An insurance contract is a contract under which one party (the insurer) 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. Certain transactions within maintenance contracts in equipment and automotive divisions are entered into as insurer which falls within the definition of insurance contracts per IFRS 4 Insurance Contracts. For further detail refer to note 30 included in the annual financial statements.

25. Financial guarantee contracts
 

The group regards financial guarantee contracts as insurance contracts and uses accounting applicable to insurance contracts. Details regarding financial guarantees issued are disclosed under contingent liabilities.

26. Classification of cash flow activities
 

For the purposes of the cash flow statement the following are classified as operating activities due to the nature of the segments they relate to:

  • Net investment in car rental vehicles
  • Net investment in fleet and rental assets.