NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2022 35. Restatement of comparatives Restatement of comparatives relate to disclosure matters and therefore do not impact net profit, allocations to members' Profit-Share Accounts, Group net assets, nor the value of members' PPS Profit-Share Accounts. 35.1 Foreign Currency Translation Reserve The Global Equity Fund ("GEF")is a controlled entity in the PPS Group and is consolidated in the PPS Group Annual Financial Statements. In the 2021 Group Annual Financial Statements, foreign currency movements relating to the translation of the GEF from USD to Rand were reflected in the Statement of Profit or Loss and Other Comprehensive Income as part of investment gains. IAS 21 The Effects of Changes in Foreign Exchange Rates requires that a Foreign Currency Translation Reserve (FCTR) be created for these movements arising on consolidation, which however, clears to zero through the Liabilities to Unit Trust Holders. Movements in investment gains have been restated to movements in FCTR to the value of R307 million to show the movements in foreign currency differences separately. The impact on net cash from investing activities is -R10 million. 35.2 Accruals of distributions in Unit Trusts The PPS Collective Investment Scheme is a controlled entity in the PPS Group and is consolidated in the PPS Group Annual Financial Statements. In the 2021 and 2020 Group Annual Financial Statements, income distributions from these unit trusts after financial year end were accrued for by raising a separate liability against the Unit Trust Liability. It was subsequently noted that when a liability relating to a Unit Trust is raised outside of the Unit Trust Liability, it can create unintended equity. Therefore, in order to align with the requirements of IAS32 Financial Instruments, the separate accrual raised was reversed, resulting in an increase in liabilities to outside unit trust holders and a decrease in Insurance and other payables of R893 million (2020: R824 million). Opening balances have been restated in terms of IAS1 Presentation of Financial Statements. 35.3 Reversal of unit trust deemed income The PPS Collective Investment Scheme is a controlled entity in the PPS Group and is consolidated in the PPS Group Annual Financial Statements. In the 2021 Group Annual Financial Statements, deemed income of R38 million recognised in these unit trusts as part of investment income was not reversed into the contributions account. Investment income has been restated to reclassify the deemed income raised to the Contributions in the Liabilities to outside unit trust holders. 35.4 Net changes to cash utilised by operations, interest and dividends received During the current year, the Group recalculated the non-cash components of the Interest and Dividends distributed by unit trusts, particularly those immediately reinvested. This recalculation resulted in a restatement of the interest received R193 million and dividends received R88 million. These restatements have no impact on the annual allocation of surplus to members' PPS Profit-Share Accounts and no effect on members' assets backing up these accounts. Consequential adjustments to cash utilised in operations amount to R39 million. 160 Notes to the Consolidated Financial Statements
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