Notes to the Financial Statements
69
Notes to the Financial Statements
continued
u
b . Foreign currency translation
(i)  Transactions and balances
Foreign currency transactions are translated 
into the respective functional currencies of the 
Group entities at exchange rates on the dates of 
the transactions. Foreign exchange gains and 
losses resulting from the settlement of such 
transactions and from the translation at year-
end exchange rates of monetary assets and 
liabilities denominated in foreign currencies are 
recognised in the profit or loss, except when 
they are deferred in equity as qualifying cash 
flow hedges and qualifying net investment 
hedges or are attributable to part of the net 
investment in a foreign operation.
Translation differences on assets and liabilities 
carried at fair value are reported as part of the 
fair value gain or loss. Translation differences on 
non-monetary assets and liabilities such as 
equities held at fair value through profit or loss 
are recognised in profit or loss as part of the fair 
value gain or loss. Translation differences on 
non-monetary assets are included in the fair 
value reserve in equity.
Exchange gains and losses which arise on 
balances between Group entities are taken to 
the foreign currency translation reserve where 
the intra-group balances are in substance part of 
the Group’s net investment. Where as a result of 
a change in circumstances, a previously desig-
nated intra-group balance is intended to be 
settled in the foreseeable future, the intra-group 
balance is no longer regarded as part of net 
investment. The exchange differences for such 
balance previously taken directly to the foreign 
currency translation reserves are recognised in 
the profit or loss. 
(ii) Foreign operations
The results and financial position of all the 
Group entities (none of which has the currency 
of a hyperinflationary economy) that have a 
functional currency different from the presenta-
tion currency are translated into the presenta-
tion currency as follows:
〉〉 the assets and liabilities of the foreign opera-
tions, including goodwill and fair value 
adjustments arising on acquisition, are 
translated at the year-end exchange rate;
〉〉 the income and expenses of foreign opera-
tions are translated at average exchange 
rates (unless this is not a reasonable approxi-
mation of the cumulative effect of the rate 
prevailing on the transaction dates, in which 
case income and expenses are translated at 
the dates of the transactions); and 
〉〉 foreign currency differences are recognised in 
other comprehensive income, and presented 
in the foreign currency translation reserve.
c . Revenue 
Revenue is measured at the fair value of the 
consideration received or receivable. Sales 
revenue represents the net proceeds receivable 
from the buyer. 
Gold and silver sales
Gold and silver revenue is recognised when the 
refinery process has been finalised at which 
point the sale transaction to a third party is also 
completed. Transportation and refinery costs 
are expensed when incurred. 
d . Income tax
Income tax expense comprises current and 
deferred tax. Current tax and deferred tax is 
recognised in profit or loss except to the extent 
that it relates to a business combination, or 
items recognised directly in equity or in other 
comprehensive income.
Current tax is the expected tax payable or 
receivable on the taxable income or loss for the 
year, using tax rates enacted or substantively 
enacted at the reporting date, and any adjust-
ment to tax payable in respect of previous years. 
Deferred tax is provided using the liability 
method, providing for temporary differences 
between the carrying amounts of assets and 
liabilities for financial reporting purposes and 
the amounts used for taxation purposes. The 
amount of deferred tax provided is based on the 
expected manner of realisation or settlement of 
the carrying amount of assets and liabilities,