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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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