ArcelorMittal South Africa 2007 Annual Report Page 105 Group Company
2007
Rm
2006
Rm
2007
Rm
2006
Rm
 9. IMPAIRMENT REVERSAL Impairment reversal against investment in subsidiary
2 799
 Due to substantial retained losses, an impairment against the company’s investment in the then jointly controlled entity, Saldanha Steel (Proprietary) Limited, was raised in the 2001 financial year, amounting to R2 336 million. The impairment increased to R4 051 million in 2002 when Saldanha Steel (Proprietary) Limited became a subsidiary. Benefiting from a recapitalisation, a more stable operating performance, and an improved global steel market, it was possible to reduce the impairment to R3 810 million in 2003, and R2 799 million by 2004. In the current year, the surplus between the net asset value of Saldanha Steel (Proprietary) Limited and the impaired net carrying amount of ArcelorMittal South Africa’s investment, exceeded the remaining impairment of R2 799 million.    Consequently, the total impairment against the investment has been reversed. Further in the current year, the remaining impairment of R489 million against the property, plant and equipment in the entity-own accounts of Saldanha Steel (Proprietary) Limited has been reversed. The recoverable amount for Saldanha Steel (Proprietary) Limited was assessed at year-end and amounts to R15 415 million. No reversal gain is reflected in the group’s accounts as the reversals recognised in the prior years have eliminated the group’s share of the impairment charged to its consolidated retained earnings, of R1 500 million.   10.   GAINS AND LOSSES ON CHANGES IN FOREIGN EXCHANGE RATES AND FINANCIAL INSTRUMENTS DESIGNATED AS HELD FOR TRADING AT FAIR VALUE THROUGH PROFIT AND LOSS Gains/(losses) on changes in foreign exchange rates Gains on changes in foreign exchange rates
38
413
20
326
 Losses on changes in foreign exchange rates
(188)
(2)
(180)
 Total
(150)
411
(160)
326
 Fair value gains transferred from equity on ineffective derivative instruments de-designated as cash flow hedges
3
2
 Gains/(losses) on changes in the fair value of derivative instruments designated as held for trading at fair value through profit and loss
16
(110)
7
(81)
 Total
(131)
301
(151)
245