Naspers changes its reporting currency to the dollar
Listed media and technology giant, Naspers says that it will change the presentation currency in its financial statements to the dollar from the rand.
The group said that its board believes that “USD financial reporting provides more relevant presentation of the group’s financial position, funding and treasury functions, financial performance and its cash flows”.
The change will take effect from the financial year ended March 2016.
Naspers said that it has evolved from a single-country newspaper business and early investor in pay television to a video-entertainment leader and global internet and e-commerce group with operations in over 130 countries.
“Today, more than 70% of revenue measured on an economic interest basis (which includes the group’s proportionate share of the revenue of associates and joint ventures) is sourced from outside South Africa,” it said.
The company further noted that its shareholder base is now largely comprised of foreign investors to whom financial reporting in rands is of limited relevance.
“Internally, the board also bases its performance evaluation and many investment decisions on USD financial information.”
Naspers pointed out that dividends will continue to be declared in rand terms, with the relevant exchange rate announced at the time of the dividend payment.
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