Integrated Reports Senwes Financial Review 2018 - Page 39

FINANCIAL REVIEW 14. TRADE AND OTHER PAYABLES 15. GROUP INCOME TAX 15.1 Tax expense COMPANY GROUP 2018 R’m 2017 R’m 2018 R’m 2017 R’m Trade payables 550 305 349 255 Members' funds 13 13 13 13 Audit fees 2 4 2 4 (Decrease)/increase in deferred tax (liability)/asset PAYE 5 4 5 4 Previous year's adjustment 83 110 61 78 Total tax expense * Amount is less than R500k. Other amounts payable Leave and thirteenth cheque accrual Total trade and other payables 39 24 23 24 21 677 459 454 375 Terms and conditions in respect of trade and other payables: SA normal tax – current year COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m (100) (48) (94) (43) (28) (14) (24) (33) 7 - 7 -* (121) (62) (111) (76) 15.2 Deferred tax (liability)/asset GROUP Trade payables are payable on different terms from 30 days after date of statement and are not interest- bearing. Other amounts payable have varying short-term payment dates. Leave and thirteenth cheques payable are accrued on a monthly basis. The main temporary differences: Trade and other payables at amortised cost approximate the fair value. Property, plant and equipment COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m (27) (39) (28) (39) Inventory provisions 25 9 25 9 Trade and other receivables 20 20 19 20 Other provisions 25 3 25 2 Other financial liabilities (49) - (49) - Share incentive ( 2) - (1) - Operational losses carried forward* 18 22 - - CGT losses carried forward 13 13 13 12 Investment in joint ventures** (29) (28) (34) (33) Deferred tax (liability)/asset (18) 11 (41) (17) ** Consists of deferred tax on the Hinterland investment and provisions carried over to Hinterland as part of the merger transaction. FINANCIAL REVIEW * The operational losses carried forward relates mainly to Tradevantage's assessed losses. The deferred tax asset will be recognised in full. For IFRS purposes an asset can be recognised if there is proof that the asset will be able to be utilised through future profits, no time limit on utilisations exists for recognition. The forecast and budget of Tradevantage displays a profit from the 2019 financial year onwards. The budget seems reasonable and somewhat conservative taking into account that full carry is now available in the market. The situation will be monitored and if profits don't realise as expected in the following years, the asset will be reconsidered.