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The board of directors of Assore (the board) assumes full responsibility for the preparation of these summarised consolidated annual financial statements and for the correctness of the financial information extracted from the underlying annual financial statements, dated 18 October 2019. The summarised consolidated annual financial statements for the year have been prepared under the supervision of Mr RA Davies, CA(SA) and in accordance with IAS 34: Interim Financial Reporting and comply with IFRS, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Pronouncements as issued by Financial Reporting Standards Council, the Listings Requirements of the JSE Limited (JSE) and the Companies Act No 71 of 2008, as amended. The accounting policies applied are consistent with those adopted in the financial year ended 30 June 2018 except for IFRS 9: Financial Instruments and
IFRS 15: Revenue from Contracts with Customers, which the group adopted on 1 July 2018, as described in the underlying annual financial statements for 2019, which can be obtained on the Assore website: https://www.assore.com/interim-and-final-results/.

IFRS 16: Leases was issued in January 2016 and it replaces IAS 17: Leases and its related interpretations and sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The group intends to adopt IFRS 16 using the modified retrospective approach, with its application becoming effective from 1 July 2019, with the cumulative impact of its adoption to 30 June 2019 recognised as at 1 July 2019, without restatement of comparative results.

In 2019 a detailed impact assessment and implementation analysis of IFRS 16 was initiated, focusing on reviewing contracts, aggregating data to support the evaluation of the accounting impacts and identifying where key policy decisions were required. The impact of the standard is being considered and is not expected to have a material impact on the group's financial statements.

In terms of IFRS 16, operating leases recorded in the group's results for FY19 will be classified as a right of use asset. The contracts with suppliers were considered and the agreements have either been classified as short term (less than 12 months), considered as low value assets or the lease payment terms were based on a variable consideration, resulting in no right of use asset requiring recognition.

These summarised consolidated annual financial statements for the year ended 30 June 2019 have been extracted from the complete set of annual financial statements on which the auditors, Ernst & Young Inc., have expressed an unqualified audit opinion. The auditor's opinion and annual financial statements are available for inspection at the registered office of the company. The summarised consolidated annual financial statements and the financial information have not been audited.