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Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
7.
Taxation
continued
7.2 Deferred taxation
Deferred taxation is provided using the liability method for all temporary differences arising between the tax bases
of assets and liabilities and their carrying values for financial reporting purposes.
However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than
a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is
not accounted for. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by year-end and are expected to apply when the related deferred income tax asset is realised
or the deferred income tax liability is settled.
Critical accounting estimates and assumptions
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised. Deferred income tax is provided on temporary differences
arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary
difference is controlled by the Group and it is probable that the temporary difference will not reverse in the
foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
Capital
allowances
R’000
Fair
value
gains
R’000
Pro-
visions
R’000
Tax
losses
R’000
Pre-
payments
R’000
Un-
realised
foreign
exchange
differences
R’000
Other
R’000
Total
R’000
At 31 May 2015
322 47 985 (19 171) (21 173)
2 354
14 410 (1 074) 23 653
Charged/(credited)
to the income
statement
(841)
(6 270)
(359)
1 471
1 973
19 458 (2 069) 13 363
Disposal of
subsidiary
61
— 869 3 083
(59)
— (41)
3 913
At 31 May 2016
(458) 41 715 (18 661) (16 619)
4 268
33 868 (3 184) 40 929
Charged/(credited)
to the income
statement
7 828
(5 411)
(3 720)
1 050
(1 466)
(16 134) 3 900 (13 953)
Acquisition of
subsidiary
— — — (721)
— — — (721)
At 31 May 2017
7 370 36 304 (22 381) (16 290)
2 802
17 734
716 26 255