Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 7
Conclusions
• The Committee considered assurance
from management that disclosures in
Sasol’s financial statements were fair,
balanced and understandable.
• Having assessed all of the available
information and the assurances
provided by management, the
Committee concluded that the
processes underlying the preparation of
Sasol’s published financial statements
were appropriate.
• The Committee evaluated the outputs
of Sasol’s Sarbanes Oxley Act section
404 (SOX) internal control process and
reviewed issues on control deficiencies • This included an assessment of progress
and remediation efforts.
made on the remediation of material
deficiencies identified in the previous
• Established via reports that there were
financial year, considering the results
no indications of fraud relating to
of the internal and external auditors’
financial reporting matters.
confirmation thereof.
• Assessed disclosure controls and
procedures.
• Considered matters of accounting, tax
and disclosure issues raised by the
external auditors.
• The Committee obtained assurance on
the skills and capabilities of resources.
Impairment and
recoverability of
assets carrying
values
• Judgements and
• The Committee assessed the
• The Committee also supported
assumptions are applied
appropriateness of the review of
management’s recommendation to
by management in
impairment triggers.
impair CGUs within the South African
calculating the recoverable • The Committee reviewed the discount
integrated value chain to the amount
amount of the Cash
of R33,4 billion due to a significant
rates for impairment testing and
Generating Units (CGUs)
strengthening of the ZAR/US$ exchange
examined the assumptions including
and determining the
rate outlook and lower volumes.
long-term oil and gas prices, refining
on-going appropriateness
margins, chemical prices and exchange • Other impairments, including a full
of the CGUs being used for
rates. The pricing assumptions
impairment of the US Phenolics
the purpose of impairment
were benchmarked against external
business of R460 million.
testing.
consultant views to ensure that they
• In respect of the EO/EG assets, the
• These include assumptions
are reasonable and relevant.
Committee supported management’s
on future pricing, future
• For impairment reversals identified
recommendation to reverse previous
feedstock costs, net cash
in the current year, the Committee
impairments of R4,9 billion, resulting
inflows and discount rates.
assessed whether there has been a
from the re-assessment of CGUs to
• Judgements are also
change in the underlying economic
combine the EO/EG CGU with the Alcohol
required in assessing the
circumstances which caused the initial
& Alumina CGU.
recoverability of overdue
impairment.
• In respect of the Sasol Canada shale
receivables and in deciding • Key impairment assessments and
gas assets, the Committee supported
whether impairments are
reversals reviewed by the Committee
management’s recommendation
appropriate.
includes:
to reverse previous impairments of
– The Southern Africa integrated
value chain assets including the
prior period errors identified by
management as described in
note 1;
– The US Phenolics assets;
– The Ethylene Oxide / Ethylene
Glycol (EO/EG) assets in North
America; and
– Shale gas assets in Canada.
R521 million, in order to measure the
carrying value of the disposal group at
its fair value less cost to sell.
• The Committee considered
management’s assessment that the
Company’s assets are fairly valued in
relation to its market value.
• The Committee reviewed management’s
sensitivity analyses of recoverable
amounts to obtain comfort on
impairment results as described in
note 10.
• The Committee reviewed management’s
assessment relating to the prior period
errors and concluded that the correction
did not have a material impact on,
nor require amendment of, any of the
Company’s previously issued or filed
financial statements taken as a whole.
• The Committee monitored the position
of any material overdue receivables and
any associated provisions.
5
Sasol Annual Financial Statements 2021
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Fair, balanced and
understandable
reporting
Audit Committee Review
NOTES TO THE FINANCIAL STATEMENTS
Judgments in Financial
Reporting
OTHER
Key Issues
SASOL LIMITED COMPANY
Significant matters considered by the Committee