Listed media and technology giant, Naspers says that it will change the presentation currency in its financial statements to the dollar from the rand.<\/p>\n
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”.<\/p>\n
The change will take effect from the financial year ended March 2016.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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.<\/p>\n
“Internally, the board also bases its performance evaluation and many investment decisions on USD financial information.”<\/p>\n
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.<\/p>\n
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