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For the year ended 31 May 2016
165
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
continued
2016
R’000
2015
R’000
5.
Deferred taxation
At the beginning of the year
(4 058)
(6 737)
Credited/(charged) to the statement of comprehensive income:
Provisions
(1 736)
(5 876)
Tax losses
655
5 355
Capital allowances
(49)
(49)
Equity compensation benefit
(1 639)
3 237
Unrealised foreign exchange
7 018
2 930
Other
1 653
(2 918)
At the end of the year
1 844
(4 058)
Deferred taxation comprises:
Provisions
(8 553)
(6 817)
Tax losses
(2 111)
(2 766)
Capital allowances
38
87
Equity compensation benefit
4 847
6 486
Unrealised foreign exchange
9 766
2 748
Other
(2 143)
(3 796)
1 844
(4 058)
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Deferred tax assets
Deferred tax assets to be recovered after more than 12 months
—
3 398
Deferred tax assets to be recovered within 12 months
—
(7 456)
—
(4 058)
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than 12 months
10 205
—
Deferred tax liabilities to be recovered within 12 months
(8 361)
—
1 844
—
Net deferred tax liability/(asset)
1 844
(4 058)
Where deferred tax assets have been recognised, a formal process of assessment of the future profitability of the
Company has been performed based on detailed budgets and cash flow forecasts. As a result, management believes
that the current tax losses will be utilised within one to five years. There are no unrecognised tax losses in the current
year (2015: Rnil).