XML 314 R56.htm IDEA: XBRL DOCUMENT v3.23.1
Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Standards, interpretations and amendments to published standards
During the financial year, the following new and revised accounting standards, amendments to standards and new interpretations were adopted by the Group:
Standard(s)
Amendment(s)
Interpretation(s)		Nature of the changeSalient features of the changesImpact on financial position or performance
IAS 16 Property, plant and equipment
Amendment
•The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of property, plant and equipment any proceeds received from selling items produced while the entity is preparing the asset for its intended use;
•It also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment;
•The Group evaluated the amendment to IAS 16 and this will have an impact on the Salares Norte mine once it reaches commercial levels of production; and
•Prior year balances will not be impacted because Gruyere reached commercial levels of production before the last comparative period presented.
No impact in 2022
IFRS 3 Business Combinations
Amendment
•The amendments to IFRS 3 Business Combinations updates the references to the Conceptual Framework for Financial Reporting and adds an exception for the recognition of liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and Interpretation 21 Levies; and
•The amendments also confirm that contingent assets should not be recognised at the acquisition date.
No impact
1.BASIS OF PREPARATION continued
Standard(s)
Amendment(s)
Interpretation(s)		Nature of the changeSalient features of the changesImpact on financial position or performance
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Amendment
•The amendment to IAS 37 clarifies that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts. Before recognising a separate provision for an onerous contract, the entity recognises any impairment loss that has occurred on assets used in fulfilling the contract.
No impact
Annual ImprovementsAmendment
The following improvements were finalised:
•IFRS 9 Financial Instruments – clarifies which fees should be included in the 10% test for derecognition of financial liabilities;
•IFRS 16 Leases – amendment of illustrative example 13 to remove the illustration of payments from the lessor relating to leasehold improvements, to remove any confusion about the treatment of lease incentives; and
•IFRS 1 First-time Adoption of International Financial Reporting Standards – allows entities that have measured their assets and liabilities at carrying amounts recorded in their parent’s books to also measure any cumulative translation differences using the amounts reported by the parent. This amendment will also apply to associates and joint ventures that have taken the same IFRS 1 exemption.
No impact
Standards, interpretations and amendments to published standards that are not yet effective
These standards, amendments and interpretations that are relevant to the Group are:
Standard(s)
Amendment(s) Interpretation(s)		Nature of the changeSalient features of the changesEffective date
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2
Amendments
•This amendment to IAS 1 requires companies to disclose their material accounting policy information rather than their significant accounting policies;
•This amendment also provides a definition of material accounting policy information;
•Further, the amendment clarifies that immaterial accounting policy information need not be disclosed;
•To support this amendment, the Board also amended IFRS Practice Statement 2 Making Materiality Judgements, to provide guidance on how to apply the concept of materiality to accounting policy disclosures; and
•The amendment is not expected to have a material impact on the Group.
1 January 2023
IAS 1 Presentation of Financial Statements
Amendments
•The amendments to IAS 1 clarify that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date;
•The amendments also clarify what IAS 1 means when it refers to the ‘settlement’ of a liability; and
•The amendments are not expected to have a material impact on the Group.
 1 January 2024
Accounting Policies continued





1.BASIS OF PREPARATION continued
Standard(s)
Amendment(s) Interpretation(s)		Nature of the changeSalient features of the changesEffective date
IAS 12 Income Taxes
Amendment
•The amendments to IAS 12 Income Taxes require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities;
•The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, entities should recognise deferred tax assets (to the extent that it is probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with:
–Right-of-use assets and lease liabilities; and
–Decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the related assets.
•The cumulative effect of recognising these adjustments is recognised in retained earnings, or another component of equity, as appropriate; and
•The amendment will not have a material impact as the Group already accounts for deferred taxation in such a manner.
1 January 2023
IFRS 17 Insurance Contracts
New Standard
•IFRS 17 supersedes IFRS 4 Insurance Contracts and aims to increase comparability and transparency about profitability. The new standard introduces a new comprehensive model (“general model”) for the recognition and measurement of liabilities arising from insurance contracts;
•In addition, it includes a simplified approach and modifications to the general measurement model that can be applied in certain circumstances and to specific contracts, such as:
–Reinsurance contracts held;
–Direct participating contracts; and
–Investment contracts with discretionary participation features.
•Under the new standard, investment components are excluded from insurance revenue and service expenses. Entities can also choose to present the effect of changes in discount rates and other financial risks in profit or loss or OCI;
•The new standard includes various new disclosures and requires additional granularity in disclosures to assist users to assess the effects of insurance contracts on the entity’s financial statements; and
•The standard will not have an impact on the Group.
1 January 2023
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
Amendment
•This amendment to IAS 8 clarifies how companies should distinguish between changes in accounting policies and changes in accounting estimates; and
•The amendment is not expected to have a material impact on the Group.
1 January 2023
*    Effective date refers to annual period beginning on or after said date.
Summary of significant assumptions used in group's impairment assessments (FVLCOD calculations)
Significant assumptions used in the Group’s impairment assessments (FVLCOD calculations) include:
202220212020
US$ Gold price per ounce – year 1US$1,740 US$1,750 US$1,600 
US$ Gold price per ounce – year 2US$1,730 US$1,700 US$1,700 
US$ Gold price per ounce – year 3US$1,700 US$1,600 US$1,600 
US$ Gold price per ounce – year 4US$1,650 US$1,550 US$1,500 
US$ Gold price per ounce – year 5 onwardsUS$1,620 US$1,550 US$1,500 
Rand Gold price per kilogram – year 1R925,000 R875,000 R900,000 
Rand Gold price per kilogram – year 2R925,000 R870,000 R850,000 
Rand Gold price per kilogram – year 3R925,000 R810,000 R800,000 
Rand Gold price per kilogram – year 4 R900,000 R780,000 R750,000 
Rand Gold price per kilogram – year 5 onwardsR875,000 R780,000 R750,000 
A$ Gold price per ounce – year 1A$2,500 A$2,400 A$2,190 
A$ Gold price per ounce – year 2A$2,400 A$2,300 A$2,300 
A$ Gold price per ounce – year 3A$2,350 A$2,150 A$2,200 
A$ Gold price per ounce – year 4A$2,250 A$2,070 A$2,000 
A$ Gold price per ounce – year 5 onwardsA$2,200 A$2,070 A$2,000 
US$ Copper price per tonne – year 1US$7,700 US$8,700 US$5,797 
US$ Copper price per tonne – year 2US$8,150 US$8,000 US$6,612 
US$ Copper price per tonne – year 3US$8,150 US$7,700 US$6,612 
US$ Copper price per tonne – year 4 US$8,150 US$7,500 US$6,612 
US$ Copper price per tonne – year 5 onwardsUS$7,700 US$7,500 US$6,612 
Resource value per ounce (used to calculate the value beyond proved and probable reserves)
•South Africa (with infrastructure)
— — US$6 
•Ghana (with infrastructure)
US$71 US$187 US$76 
•Peru (with infrastructure)
US$30 US$10 US$34 
•Australia (with infrastructure)1
— — US$88 
•Chile (without infrastructure)
US$29 US$70 US$4 
Discount rates
•South Africa – nominal
16.3 %14.3 %14.5 %
•Ghana – real
15.9 %8.3 %8.4 %
•Peru – real
8.1 %4.8 %4.5 %
•Australia – real
6.3 %3.8 %3.5 %
•Chile – real
9.1 %5.9 %6.0 %
Inflation rate – South Africa2
5.4 %5.4 %5.4 %
Life-of-mine
•South Deep
74 years80 years86 years
•Tarkwa
13 years14 years14 years
•Damang
3 years4 years5 years
•Cerro Corona
8 years9 years10 years
•St Ives
8 years9 years8 years
•Agnew
5 years6 years5 years
•Granny Smith
10 years11 years10 years
•Gruyere
11 years12 years9 years
•Salares Norte
10 years11 years12 years
1    Resources in Australia are modelled using the income approach and not the market approach.
2    Due to the availability of unredeemed capital for tax purposes over several years into the life of the South Deep mine, nominal cash flows are used for South Africa. In order to determine nominal cash flows in South Africa, costs are inflated by the current South African inflation rate. Cash flows for all other operations are in real terms and as a result are not inflated.
Accounting Policies continued





1.BASIS OF PREPARATION continued
202220212020
Long-term exchange rates
US$/ZAR – year 116.53 15.55 17.50 
US$/ZAR – year 2 16.63 15.92 15.55 
US$/ZAR – year 316.92 15.75 15.55 
US$/ZAR – year 416.97 15.65 15.55 
US$/ZAR – year 5 onwards16.80 15.65 15.55 
A$/US$ – year 10.70 0.75 0.76 
A$/US$ – year 20.72 0.74 0.74 
A$/US$ – year 30.72 0.73 0.73 
A$/US$ – year 4 0.73 0.75 0.75 
A$/US$ – year 5 onwards0.74 0.75 9.75 
Summary of dey assumptions used in the income and market approach The key assumptions used in the income and market approach are as follows:
20222021
US$ Gold price per ounce – year 1 to 3
US$1,650 – US$1,740
US$1,600 – US$1,750
US$ Gold price per ounce – year 4 onwardsUS$1,620 US$1,550 
Resource value per ounce (with infrastructure)1
US$44 — 
Discount rates – real19.3 %9.0 %
Life-of-mine6 years6 years
1     Resource value per ounce for 2021 determined using Kilburn Geoscience Rating Method. The outcome of this valuation was a value of US$40 million (US$18 million on 45% basis).
Disclosure Of Financial Assets Measurement Policy Financial assets – Measurement policy
Financial asset
category		Description
Financial assets at
amortised cost		These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Equity investments
at FVOCI		These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss.
Financial assets
at FVTPL		These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.