ArcelorMittal South Africa
Annual Report 2009Notes to the group and company annual financial statements
for the year ended 31 December 2009
1. GENERAL INFORMATION
ArcelorMittal South Africa Limited (the company) and its subsidiaries (together, the group) manufacture and sell long and
flat carbon steel products and beneficiated by-products. The group's operations are primarily concentrated in South Africa
with a sales focus domestically and internationally, with specific emphasis on sub-Saharan Africa.
The company is a limited liability company incorporated and domiciled in South Africa. The address of the registered office
is detailed on page 207.
The company's functional currency is the South African Rand (ZAR).
The company is listed on the JSE Limited in Johannesburg, South Africa, and is a subsidiary of ArcelorMittal Holdings AG,
which is part of the ArcelorMittal Group.
2. ADOPTION OF NEW AND REVISED STANDARDS
2.1 Standards, Interpretations and Amendments effective in 2009
The following Standards, Amendments thereto and Interpretations as issued by the International Accounting
Standards Board (IASB) which are effective for the current reporting period, were early adopted in the previous
reporting period:
• IAS I (Revised)Presentation of Financial Statements
• IAS 16 (Amendment)Property, Plant and Equipment Flows;
• IAS 19 (Amendment)
• IAS 20 (Amendment)
• IAS 23 (Amendment)
and consequential amendment to IAS 7
• IAS 27 (Revised) Statement of Cash
IFRS 5 (Amendment)
Employee Benefits;
amendment to IRFS 1
Accounting for Governments Grant and Disclosure of Governmetn Assistance;
• IAS 27 (Amendment)
Borrowing Costs;
• IAS 28 (Amendment)
Consolidated and Separated Financial Statements ,
presentation
and IFRS 3 (Revised)
Business Combinations;
• IAS 29 (Amendment)
Non-current Assets Held-for-Sale and Discontinued Operations
• IAS 31 (Amendment)
Fisrt - time Adoption of IFRS;
presentation
and consequential
Consolidated and Separate F inancial Statements ;
• IAS 32 (Amendment)
Financial Instruments: Disclosures;
Investments in Associates
and consequential amendments to IAS 32
Financial Instruments:
and IFRS 7
and consequential amendments to IAS 32
Financial Instruments:
and IFRS 7
Financial Reporting in Hyperinlfationary Economics;
Interest in Joint Ventures and
• IAS 36 (Amendment)
Financial Instruments: Disclosure;
• IAS 38 (Amendment)
Financial Instruments: Presentation
• IAS 39 (Amendment)
and IAS 1 (Amendment)
• IAS 40 (Amendment)
Impairment of Assets;
Presentation of Financial
Statements - Puttable Financial Isntruments and Obliogations on Liquidation;
Intangible Assets;
Investment Property and consequential amendments to IAS 16 Property, Plant and
• IFRS 2 (Amendment)
Equipment;
Financial Instruments: Recognition and Masurement;
• IFRS 8
Share-Based Payment ;
• IFRIC 15
Operating Segments;
• IFRIC 16
Agreements for Contruction of Real Estates; and
Hedges of Net Investment in a Foreign Operation
The following Amendment issued by the IASB is effective for the current reporting period and has been adopted:
• IFRS 7
Financial Instruments: Disclosure - Improving Disclosure About Financial Instruments.
The amendment to IFRS 7 expanded the disclosures in respect of fair value measurements and liquidity
risk. In particular, the amendment requires disclosure of the fair value measurements by level of a value
measurement hierarchy. As the adoption results only in additional disclosures, there is no impact on the financial
results, financial position or changes therein for the reporting period. The group and company have elected to
provide comparative information for these expanded disclosures in the current year.