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AFRICAN DAWN ANNUAL REPORT 2020

Accounting Policies continued

1.16 Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss
attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares in issue during the year. Diluted EPS is
determined by adjusting the profit or loss attributable to ordinary equity holders and the weighted average number of ordinary shares in issue for
the effect of all dilutive potential ordinary shares.

1.17 Share Capital and share premium

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Ordinary shares and share premium are classified as equity.
Ordinary shares are recoginsed at par value and classified as “Share Capital” in equity. Any amounts received from the issue of shares in excess
of par value is classified as “Share Premium” in equity. Where shares are issued at less than par value the difference between par value and issue
value is offset against “Share Premium”.

1.18 Significant judgements and sources of estimation uncertainty
When preparing the financial statements, management and the board make a number of judgements, estimates and assumptions. The following
are the most significant judgements, estimates and assumptions that have been made in preparing the financial statements.
Significant judgements

Going concern judgement

The consolidated and separate financial statements have been prepared on the basis of accounting policies applicable to a going concern. This
basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business.

This judgement is based on a careful consideration of the following:

* Financial statements should be prepared on a going concern basis unless it is intended to liquidate the entity or to cease trading or
there is no realistic alternative but to do so.
* In considering whether the going concern assumption is appropriate, all available information is taken into account, including
information about the foreseeable future.
* Where there are material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going
concern, those uncertainties should be disclosed.
* The material uncertainties relating to events or conditions which may cast doubt upon the ability to continue as a going concern are
outlined in the table below. The table also outlines the actions being taken to manage these uncertainties and also the current status of
these uncertainties and actions.

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