betterU Education Corp.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

For the three months period ended June 30, 2020

Dated: January 28, 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS (“MD&A”) OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of the financial condition of betterU Education Corp. (“betterU “ or the “Company”) at June 30, 2020 compared to March 31, 2020 and the results of operations for the three months ended June 30, 2020 compared to the three months ended June 30, 2019.

This MD&A should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and accompanying notes for the three months ended June 30, 2019 and the audited consolidated financial statements and accompanying notes for the twelve months ended March 31, 2020. All financial information has been prepared in accordance with International Financial Reporting Standards (“IFRS”). All monetary amounts are in Canadian dollars unless stated otherwise. Amounts presented for comparative purposes are for the twelve months ended March 31, 2020.

The information contained in this MD&A represents only a portion of current information available on betterU. Readers are encouraged to read this document together with news releases and other corporate information on the Company’s website at www.betterU.ca.

While the financial statements have been prepared on the basis of accounting principles applicable to a going concern, several adverse conditions and events cast substantial doubt upon the validity of this assumption at this time. The Company's continued existence is dependent upon its ability to secure additional financing and to attain profitable operations. Management is active in addressing these issues although there is no assurance that they will be successful. If the going concern assumption were not appropriate for these financial statements, adjustments might be necessary in the carrying values of assets and liabilities and the balance sheet classifications.

The effective date of this MD&A is January 28, 2021.

FORWARD-LOOKING INFORMATION

This MD&A contains certain forward-looking statements which may be based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to strategies, expectations, planned operations or future actions. Forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions.

Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to risks and uncertainties that may cause actual results or events to differ materially from the results or events predicted in this discussion. The Company is subject to the risks outlined in the “Risk Factors” section of this MD&A. No assurance can be provided that the results or performance expressed in or implied by forward-looking statements within this MD&A will occur, or if they do, that any benefits may be derived from them. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations, except as prescribed by applicable securities laws.

COMPANY OVERVIEW AND BUSINESS DESCRIPTION

betterU is a technology gateway and marketplace for online education in emerging markets. The Company aggregates online learning from quality content vendors including universities, colleges and corporations from around the world and make that content available to students through the betterU platform. betterU’s offerings can be categorized into four broad functions: to complement school programs with flexible KG-12 programs preparing children for their next stage of education, to foster an exceptional educational environment by providing befitting skills that lead to a better career, to bridge the gap 2

between one’s existing education and prospective job requirement by training them and lastly, to connect the end user to various job opportunities.

betterU, formerly Open Gold Corp. (“Open Gold”), was formed by way of an amalgamation pursuant to the Business Corporations Act of British Columbia. The Company’s shares trade on the TSX Venture Exchange (the “Exchange”) under the trading symbol “BTRU”.

With limited personal and financial resources, management was required to prioritized people to add the most to the future of the business. Focusing on the investment has been a key objective as it will provide the Company with all the necessary resources to grow and drive revenues.

RECENT DEVELOPMENTS AND SUBSEQUENT EVENTS

Financings

There has been an ongoing focus to obtain investment as the Company continues to build the business. With limited people resources, the Company has used the investments received to support operations, putting in place global partnerships, securing more value opportunities for the future growth of the Company and overall positioning the Company to be a global leader. See the Outlook section for more details to the efforts and value the Company has been building.

The Company was able to obtain Canadian Emergency Business Account loan of $80,000 (under betterU Education Corp. and Skillsdox Inc. for $40,000 each) during the three-month ended June 30, 2020. The CEBA Loan bears 0% interest until December 31, 2022 . If the balance is not paid by December 31, 2022, the remaining balance will be converted to a 3-year term loan at 5% annual interest paid monthly, effective January 1, 2023. The full balance must be repaid by no later than December 31, 2025. No principal payments required until December 31, 2022. Principal repayments can be voluntarily made at any time without fees or penalties. $10,000 loan forgiveness is available, provided the outstanding balance is $40,000 at December 31, 2020, and $30,000 is paid back between January 1, 2021 and December 31, 2022.

OVERALL PERFORMANCE

During the three months ended June 30, 2020, the Company reported a comprehensive loss of $297,145 as compared to a comprehensive loss of $750,810 for the three months ended June 30, 2019. Due to a lack of funding success, the company has had to reduce its overall spending as compared to the prior year comparative quarter. The primary areas of reduction were salaries and wages, and advertising and promotion. Traditionally, the Company’s spending has been dedicated to developing the operational capacity, required to support its developing opportunities. This included the establishing of teams to support the Company’s customer service, business development, sales, programming, finance and marketing and much more. In addition, the Company continues to advance its technology infrastructure, strategic relationships with global academia, government organizations, corporations and sector skills councils in order to advance its presence, distribution and revenue opportunities in the Indian market.

RESULTS OF OPERATIONS

The following discussion of the Company’s financial performance is based on the condensed consolidated annual financial statements for the three months period ended June 30, 2020, as compared to the three months ended June 30, 2019

SUMMARY OF UNAUDITED QUARTERLY RESULTS

The following table sets forth summary results of operations for the past eight quarters. The information for the fiscal period ended September 30, 2018 and the subsequent quarters has been taken from the unaudited consolidated financial statements that, in management’s opinion, have been prepared on a basis consistent with the audited consolidated financial statements for the fiscal year ended March 31, 2020.

Quarterly Results

RevenueOperating expensesOperating lossOther income (expense)Net loss	30-Sep31-Dec31-Mar30-Jun30-Sep31-Dec31-Mar30-Jun201820182019201920192019202020217,529$ 13,728$ 16,683$ 198$ 400$ 578$ 516$ 926$ 1,432,573$ 723,018$ 3,678,734$ 671,358$ 415,216$ 310,615$ 1,001,781$ 208,965$
	(1,425,044)(709,290)(3,662,051)(671,160)(414,816)(310,037)(1,001,265)(208,039)
	(62,627)(157,923)(90,066)(80,177)(81,864)(98,297)(74,096)(90,288)
	(1,487,671)(867,214)(3,752,117)(751,337)(496,680)(408,334)(1,075,361)(298,327)

SUMMARY OF RESULTS FOR THE THREE MONTHS PERIOD ENDED JUNE 30, 2019, AS COMPARED TO THE THREE MONTHS PERIOD ENDED JUNE 30, 2018

The following table sets forth a summary of results of operations from the Company’s consolidated financial statements for the three months ended June 30, 2019 and the three months ended June 30, 2018.

RevenuesOperating expensesContractorsSalaries and wagesRent and premisesAdvertising and promotionProfessional feesTravelOther general and administrative costsBank chargesAmortizationStock based compensationLoss from operationsOther income (expense)Finance expenseOther IncomeForeign exchangegain(loss)Net lossExchange differences on translatingoperationsComprehensive loss	Three monthsendedJune 30, 2020Three monthsendedJune 30, 2019
	$$
	926198
	129,146--227,4854,00039,3021,19058,10140,973236,125-25,03131,8052,8274961,1419492,31240579,035
	208,965671,358
	(208,039)(671,160)(91,788)(80,171)1,423-77(6)
	(90,288)(80,177)
	(298,327)(751,337)1,182527
	(297,145)(750,810)

The Company operates internationally through its subsidiary in India. The Company reports its financial results in Canadian dollars (CAD”) and converts foreign currency-denominated transactions related to the statement of income (loss) at the average exchange rates for the periods. As such, changes in the exchange rate between the Indian Rupee and the Canadian dollar can have an impact on the reported results for each fiscal period. The average exchange rate for the three months period ended June 30, 2020 in terms of the Canadian dollar equivalent of one Rupee was CAD $0.018.

REVENUES

Revenue for the three-month ended June 30, 2020 was $926 as compared to $198 for the three months ended June 30, 2019. Revenue was generated principally from the Company’s marketplace which was launched into the Indian market in late 2016. The Company continues to focus on growing revenues through marketing initiatives, building key strategic relationships, as well as further developing its platform for its online gateway.

OPERATING EXPENSES

Operating expenses for the three months ended June 30, 2020 was $208,965 compared to operating expenses of $671,358 for the three months ended June 30, 2019. A summary of the key components of operating expenses has been provided below.

Salaries and wages

Salaries and wages for the three months ended June 30, 2020 was $0 as compared to $227,485 for three months ended June 30, 2019.

Rent and premises

Rent and premises for the three months ended June 30, 2020 was $4,000 as compared to $39,302 for the three months ended June 30, 2019. Rent and premises relates to the offices in Canada.

Advertising and promotion

Advertising and promotion for the three months ended June 30, 2020 was $1,190 compared to $58,101 for the three months ended June 30, 2019. This spending primarily related to the Company’s speaking engagements, conferences, digital and promotional initiatives in support of its marketplace and efforts in India.

Professional Fees

Professional fees for the three months ended June 30, 2020 was $40,973 as compared to $236,125 for the three months ended June 30, 2019.

Travel

Travel expenses for the three months ended June 30, 2020 was $0 as compared to $25,031 for the three months ended June 30, 2019. These costs are associated with a combination of attendance at conferences and events to promote betterU, travel associated with setting up partnerships with educational institutions and ongoing development of strategic relationships. 5

Stock based compensation

Stock based compensation expenses for the three months ended June 30, 2020 as $405 as compared to negative $79,035 for the three months ended June 30, 2019. This relates to the expense in the period associated with the stock options granted to employees, consultants and directors.

Finance expense

Finance expense for the three months ended June 30, 2020 was $91,788 as compared to $80,171 for the three months ended June 30, 2019. Finance expenses in the current period mainly relates to interest on Promissory Notes including short term loans.

Exchange differences on translating operations

At the end of each reporting period the results and financial position of the Indian subsidiary are translated into the Company’s presentation currency. Assets and liabilities are translated at the closing rate. Revenues and expenses are translated using the average rate for the reporting period, as an approximation to the exchange rate at the date of each transaction. All exchange gains and losses on translation are included in other comprehensive loss and accumulated in the exchange differences on translating operations.

During the three months ended June 30, 2020 the Company recorded unrealized foreign exchange gain of $1,182 as compared to exchange loss of $527 for the three months ended June 30, 2019. This relates primarily to the translation of the Indian foreign operations into Canadian dollars.

Comprehensive loss

The comprehensive loss for the three months ended June 30, 2020 was $297,145 as compared to $750,810 for the three months ended June 30, 2019.

Loss per common share

Basic and diluted loss per common share:Weighted Average Number of Common Shares	Three monthsendedThree months ended30-Jun-2030-Jun-19
	$(0.004)$(0.01)78,271,75166,377,795

OUTLOOK

The following outlook is a much more detailed description of the Company and to the efforts and value the team has been putting together for the future of the world.

The Company’s would like to share the following outlook and the advancements that have been made including:

Completed the development of the Enterprise ‘Service as a Software’ solution called Ready-To-Go to address onboarding, skilling and ongoing support of employees’ development.
Completed and launched the beta skills development program which was successful and that resulted in a large USA staffing company becoming a client. betterU has continued to advance efforts with the client during the beta phase and working towards supporting their national teams.

Launched the updated India platform to include all the advancements in the platform and refocused on Skills development
Launch the European office in Ireland and the associated platform to support opportunities across Europe.
Launched a national marketing campaign to promote Ready-To-Go
Launched Work-Integrated Learning platform, that leverages Ready-To-Go for student skills development.
Launched Ready-To-Go’s translation platform that takes any document and converts it to multiple languages to support global clients.
Renegotiated content partner agreements to support the company’s new SaaS model.
Curated and developed over 200 more topics to be added to the Ready-To-Go platform. This will enable more margins for the company and provide flexibility on client pricing.
Launched a pilot Franchise model to support educators that have lost business due to COVID-19. betterU now has the structure to be able to support global scale and management of partners.

Ready-To-Go

betterU has been listening to the market and realized the solution over the last few months for one of the largest challenges it has been working to solve. Gone are the days of classroom learning for employees. Gone are the days of sitting in front of a computer for hours on end, trying to learn a new skill.

The market is fragmented and betterU is working to bring it together. It has take many months to develop and integrate the total solutions. It has been completed and the company has been focused on selling.

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The pivot in betterU’s business model has opened many opportunities not only in Canada, but in the USA, Europe, Africa and India. betterU has been approached by several governments and multiple corporations for which they have been developing proposals and building their sales pipeline.

While 2020 has been a changing year due to COVID-19, betterU has continued to focus on it’s core vision, while adapting and focusing on one channel, skills development.

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Skills development and the main reason NSDC had partnered with betterU was to help support over 150 million people get access to skills development programs. There were many challenges to accomplishing this, including:

Access to the learning. Computers are not the primary point of access to content. In India and other emerging markets, mobile first has been key. 1[st] world nations have also been adopting mobile access as part of the everyday method of learning, yet for the most part the solutions are mobile friendly only, not mobile first. There is a huge different in terms of how content is delivered. Most corporations have invested in expensive learning management systems (LMS) or Content Management Systems (CMS) which in some cases have a mobile option. This is still problematic as for the most part does not effectively support delivery of the content since most LMS are designed to support heavy materials such as long videos (hrs) and other such rich content that makes it difficult to consume on a mobile device. Since many Corporates have invested already in these technologies, they are looking for easy solutions that can be rolled out across their workforce and pull in results can be integrated into what they already have. betterU has focused on simplicity.

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Languages – Most global companies have people all over their country or the world and need to reach and support them in both easy and language. In India, Hindi is a primary language, followed by English. Other countries such as Japan would need content to be in Japanese. Ready-To-Go automatically translates the text content added into the platform to 20 languages. When a user in Hindi sets their preferences to Hindu and content made available to them in English is automatically converted. This enables employers to launch a program that can support global employees.

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Content Development - Most Human Resource departments are not well equipped to support the development of content required across their entire organization, so they depend on outside providers. The challenge that they have been running into is the number of providers that they need to work with to support their entire

organization. Working with multiple providers, means employers must navigate how to integrate reports per employee from each content provider separately. They must take on costly subscription fees to accommodate the offering of the provider. They must deal with differences in learning, content development and overall quality. Having to integrate a dozen content providers can prove to be very challenges and HR departments spend more time managing partners and technology instead of building better people. betterU bring to employers all the content they would need, integrated into one solution. The employee experience is consistent and customized to each employee needs.

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Skills Gap – Employers have been struggling with how to determine the skills training their employees really need. In today’s current landscape, employers are throwing out a wide net of a lot of content that are included as part of the packages they purchase from multiple ed-techs in hopes that it addresses most of the skills needs of everyone. The challenge with this process is that companies are overpaying for content their employees do not need and their employees are getting distracted from content that is not for them.

The only way to truly determine what an employee needs is to assess them. A skill assessment across whatever the employer is looking for would determine the level of skill the employee is at and what specific content would be required. Most Ed-techs do not incorporate assessments that range across entire corporate roles or skills requirements. This is why employers do not know what to do when it comes to skills development. Edtechs are only selling them what they have to offer.

betterU has partnered with multiple global assessment partners providing access to over 600+ job role assessments and over 1000+ subject based assessments. These assessments are part of the Ready-To-Go platform to ensure employees only get content that is relevant to them. This will also save employers a lot of money, time and improve employee skills.

Affordability – Many employers are stuck with high costs from multiple providers and it becomes more difficult to convince them to change their current partnerships becomes of their already invested commitments. betterU is positioning their offering as an All-in-one solution for a low monthly cost of $19.95. This would include a monthly assessment, 4 skills that could be developed per month. betterU is able to provide pricing that is affordable due to the development of the system simplicity and content partner integration. This is a transformational opportunity that betterU is bringing to the market.

Reporting – Ready-To-Go provides access to the data that employers and employees require in order to make informed decisions. This data is integrated into the Corporate’s HRIS or LMS technologies to simplify their access.

Easy of Solution – Many skills development platforms, LMS and other such technologies can be complicated, require dedicated resources and capacities to support the system, partners and employees. betterU’s ReadyTo-Go offering is easy. Despite the complexity of the backend, betterU has made the front-end as simple as possible so that employers can focus on employee results and improvements and not the technology or content.

Corporate Clients

As part of the Ready-To-Go, betterU has started introducing the product to corporates globally. The level of interest continues to grow with several Canadian, USA. Africa and India based companies currently under contractual discussions.

Corporate Platform:

betterU has developed a Corporate and enterprise platforms providing ongoing details of the company’s advancements, efforts, history and financial details to support shareholders and the public in better understanding the efforts being made in the development of betterU. All these platforms will be announced to the public over the upcoming weeks.

The Way Forward

It has been a difficult year for development, market pressures and disappointments with the former auditors resulting in the lengthy halt. Despite all the challenges, betterU has not stopped their efforts to move the business forward. The company continues to put in place the tools, resources and position itself for revenue and growth opportunities.

2020 will be a year of revenues, growth and market positioning focusing on the Ready-To-Go offering. In order to secure the larger funding, it has been important that betterU put in place more value generators and to demonstrate that leaders are seeing betterU as a partner of choice.

LIQUIDITY AND CAPITAL RESOURCES

The tables below set out the cash and cash equivalents and working capital of the Company at June 30, 2020 and March 31, 2020 as well as the cash flows during the three months ended June 30, 2020 and the three months ended June 30, 2019.

30-Jun-20Cash and Cash Equivalents18,510Working Capital(5,989,429)	31-Mar-20
	3,576(5,788,572)

Cash used in operating activities	(66,451)	(252,570)
Investing activities
Purchase of property and equipment	204	88
Receipt/(Payment)of amount due to shareholder	-	(498)
Cash used in investing activities	204	(410)
Financing activities
Proceeds from Equity financing	-	333,000
Proceeds from CEBA loan	80,000	-
Cashprovided by financing activities	80,000	333,000
Exchange differences on translating operations	1,182	527
Increase(decrease)in cash and cash equivalents	14,934	80,548

As at June 30, 2020, the Company had cash available of $18,510 as compared to $83,717 at June 30, 2019. The working capital deficit was $ 5,989,429 as compared to deficit of $4,321,870 at June 30, 2019. The change was mainly due to the cash used in financing operations during the current year’s quarter.

Operating activities

For the three months ended June 30, 2020 the Company used cash in operating activities of $66,451 as compared to cash used of $252,570 for the three months ended June 30, 2019. This increase was primarily due to the operational spending and the repayment of certain outstanding liabilities.

Financing activities

Cash generated from financing activities for the three months ended June 30, 2020 amounted to $80,000 as compared to cash generated from financing activities of $333,000 for the three months ended June 30, 2019.

Financial Instruments

For carrying amounts of cash, trade accounts receivable, accounts payable and accrued liabilities and loans and borrowings, it is the opinion of the Company’s management that betterU is not exposed to significant interest or credit risk arising from these financial instruments. Commencing in fiscal 2015 the Company began to operate internationally with a subsidiary in India and is therefore subject to foreign currency risk. The Company reports its financial results in $CAD. Most of the Company’s revenues are transacted in Indian Rupees, and the Company incurs expenses in both Canadian and Indian Rupees. The Company has not used foreign currency forward contracts or other hedging strategies to manage its foreign currency exposure at this time given that hedging the Indian Rupee is relatively expensive.

For further details on the debt and equity instruments issued and outstanding, please see the Notes to the Financial Statements.

CAPITAL RESOURCES

The Company’s objective is to maintain enough capital base so as to maintain investor, creditor and customer confidence and to sustain future development of the business and provide the ability to continue as a going concern. Management defines capital as the Company’s shareholders’ equity and debt instruments. The Board of Directors does not establish quantitative return on capital criteria for management. The Company currently has not paid any dividends to its shareholders.

The Company’s authorized share capital is an unlimited number of common shares. As at June 30, 2020 there were 78,271,751 common shares were issued and outstanding; 10,850,001 common share purchase warrants outstanding; 4,292,429 stock options outstanding.

OFF BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS

The Company has no off-balance sheet arrangements other than those as stated below and within the section titled “Related Party Transactions”.

The table below presents the Company’s contractual obligations at June 30, 2019:

CarryingValue	Maturity Analysis
	Less than 1yearGreater than1 yearTotal
Accounts payable2,903,973Promissory notes3,070,803Bank loan40,032Convertible debentures23,878	2,903,973-2,903,9733,070,803-3,070,80340,032-40,03223,878-23,878
6,038,686	6,038,686-6,038,686

RELATED PARTIES

The following transactions have occurred in the normal course of operations:

a) In July 2014, the Company entered into a consulting services agreement with Anthony Keenan, a director of the Company. The agreement is for services rendered as a professional services consultant and board member to the Company at a rate of $7,000 per month. $414,174 remains in accounts payable and accrued liabilities on the consolidated statement of financial position as at June 30, 2020 (at March 31, 2020 - $393,174). The amounts are non-interest bearing and due on demand.
b) On March 31, 2020, the Company and the CEO settled a previous loan of $200,000 to the Loiselle Family Trust, which was advanced on March 6, 2017, and was interest bearing at the rate of 1% per annum. This loan was settled against an interest-free loan from the CEO of $129,000 that was outstanding, as well as contractor fees payable. At the time of the settlement, the net amount of the loans plus accrued interest was $78,520, which were deducted against the CEO’s unpaid compensation for the three months ended June 30, 2020. The net balance of the loans as at March 31, 2020 was $78,021.
c) Included in accounts payable and accrued liabilities is $207,150 due to the CEO for salaries and contractor fees payable as at June 30, 2020 (March 31, 2020 - $207,150).

SUBSEQUENT EVENTS

On January 4, 2021 the Company announced that it has entered into a strategic partnership agreement with Unicaf, a leading online and on-campus learning platform offering affordable, quality higher education to underserved markets across sub-Saharan Africa. Later, betterU and Unicaf will launch a branded Unicaf skills development platform with hundreds of bundled and individual skills courses available through betterU's all-in-one platform. In partnership with betterU, Unicaf will be able to easily promote and manage their customized skills development programs in supporting their students in becoming job ready. Unicaf also offers one of the most generous scholarship programmes available today.

RISKS AND UNCERTAINTIES

The Company operates in a dynamic, rapidly changing environment that involves risks and uncertainties, and as a result, management expectations may not be realized for a number of reasons. An investment in betterU common shares is speculative and involves a high degree of risk and uncertainty. The Company is highly dependent on additional financing to continue operations and there is no certainty that it will be able to obtain such financing. The current global economic crises pose additional risks and uncertainties which may materially affect management’s expectations (see “Risk Factors” within Schedule A below)

CRITICAL ACCOUNTING ESTIMATES

The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Significant estimates in the accompanying financial statements relate to the valuation of debt and equity instruments, asset impairments, accruals and provisions, unearned revenue, stockbased compensation and the estimated useful lives and valuation of property and equipment. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Consolidation

The Company consolidates subsidiaries when it obtains control. The Company has a 49.5% interest in SKI. The Company has concluded that it has control over SKI by virtue of its ownership interest and its authority to manager the strategic and operational decisions of SKI.

Financial liabilities

Financial liabilities that contain equity components or embedded derivatives require management to estimate the value allocated to each of the components. These estimates involve use of financial models such as present value calculations or the Black-Scholes model. Key inputs such as market interest, volatility and term are used.

Foreign currency

These consolidated financial statements are presented in Canadian Dollars, which is the Company’s functional and presentation currency. The functional currency for the Indian subsidiary is Indian Rupees, being the currency of the primary economic environment in which the entities operates. Items included in the financial statements of each entity are measured using their respective functional currencies and foreign currency transactions are initially recorded in the functional currency of each entity by applying the exchange rate ruling at the date of the transaction. At the end of each reporting period monetary items are re-translated using the closing rate. All exchange gains and losses are included in other comprehensive income in the financial statements. Non-monetary items measured in terms of historical cost are translated at the exchange rate at the date of the transaction and non-monetary items measured in terms of fair value are translated at the exchange rate at the date when the fair value was determined. At the end of each reporting period the results and financial position of the subsidiary are translated into the Group’s presentation currency. Assets and liabilities are translated at the closing rate. Revenues and expenses are translated using the average rate for the reporting period, as an approximation to the exchange rate at the date of each transaction. All exchange gains and losses on translation are included in other comprehensive income and accumulated in the foreign currency translation reserve.

Impairment of financial assets

Financial assets, other than those classified at fair value through profit and loss, are assessed for indicators of impairment at the end of the reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Provisions

Provisions are recognized when the Company has a present obligation, legal or constructive as a result of a previous event, if it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the obligation. The amount recognized is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligations. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate of the expected future cash flows.