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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
Calculations
C2. Reacquired right
COMMENT
• Impact of reacquired right on the separate financial statements:
• If the terms of the contract giving rise to the reacquired
right are not in line with current market transactions, the
contract will have a favourable or unfavourable
component.
• The contract is favourable to Italia as Italia receives an
annual fee of R50 458 in terms of the current agreement
whilst Italia would have received an annual fee of R35 000
in the market.
• The contract is effectively settled due to the business
combination (the group is viewed as a single entity and
cannot have a contract with itself).
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