Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 40

14. TRADE AND OTHER PAYABLES GROUP COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m Trade payables 551 306 1 1 Members’ fund 13 13 - - Audit fees 2 4 - - PAYE 5 4 - - Other amounts payable 83 110 - - Leave and thirteenth cheque accrual 24 23 - - 678 460 1 1 Total trade and other payables Terms and conditions in respect of trade and other payables: • 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. • Trade and other payables at amortised cost approximate the fair value. 15. INCOME TAX 15.1 TAX EXPENSE GROUP COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m SA normal tax – current year (100) (48) - - Increase in deferred tax asset (28) - - - Decrease in deferred tax liability - (14) (2) - Previous year's adjustment 7 - - - (121) (62) (2) - Total tax relating to continued operations 15.2 DEFERRED TAX (LIABILITY)/ASSET GROUP COMPANY 2018 R’m 2017 R’m (39) (28) The main temporary differences: Property, plant and equipment 2018 R’m 2017 R’m - - - - Inventory provisions 25 9 - - Trade and other receivables 20 20 - - 25 3 - - (49) - - - Other provisions Other financial liabilities Share incentive (2) - - - Operational losses carried forward* 18 22 - - - 13 13 - (29) (28) - - Deferred taxation on the valuation of available-for-sale financial assets (203) (204) (108) (95) Deferred tax (liability)/asset (221) (193) (108) (95) CGT losses carried forward Investment in joint ventures** * The operational losses carried forward relate 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 2018 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. ** Consists of deferred tax on the Hinterland investment and provisions carried over to Hinterland as part of the merger transaction. 39 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 Senwesbel Limited Reg no: 1996/017629/06