Following a review of expenses disclosed in the Group income statement for the year ended 31 December 2014, the expenses detailed below have been disclosed separately or reclassified between expense categories to present the expenses in accordance with the classification in the current year.

Government and regulatory costs

Government and regulatory costs that had previously been included in direct network operating costs and other operating expenses which comprises: government revenue share, regulatory fees and levies and spectrum fees, have been disclosed as a significant separate category of expense in the income statement.

Value-added services (VAS) costs

VAS costs were previously included in the costs of handsets and other accessories. Based on the underlying nature of these costs, they were reclassified and included in selling, distribution and marketing expenses. The impact of these reclassifications as disclosed in the financial statements for the year ended 31 December 2014 is provided below:

During the current year, an amount of R1 293 million in respect of 2014 was reclassified from data revenue to airtime and subscription revenue to accurately reflect the respective categories of revenue year-on-year (refer to note 2.2).

The Group manages its risk to foreign exchange exposure on a net basis and consequently in the current year the foreign exchange gains and losses previously disclosed on a gross basis and included in the relevant finance income or finance cost line is now disclosed on a net basis (refer to note 2.5).

The impact of the reclassification as disclosed in the financial statements for the year ended 31 December 2014 is provided below:

The Group restated its previously disclosed allocation of goodwill for a number of its operations. The restatement relates to a gain realised on a foreign currency hedge on initial acquisition of these operations. The gain was previously disclosed within the “other” category of goodwill. In addition, goodwill relating to the South African businesses acquired have been moved from the “other” category to be included within Mobile Telephone Networks Proprietary Limited (South Africa) . The re-allocation adjusted the goodwill of the individual operations as follows: